DULUTH, Ga.–Members of Georgia’s credit unions received a direct financial benefit of $87 per member and $165 per household for the 12 months ended September 2016 vs. having had the same relationships with banks, according to the Georgia Membership Benefits Report compiled by Georgia Credit Union Affiliates.
"No matter which direction economic indicators are pointing, credit unions play a vital role in Georgia's economy," said Mike Mercer, president and CEO of GCUA in a statement. "They spur economic growth and provide residents with essential financial services. For Georgians, these member-owned, community-based institutions offer a better alternative for consumers."
As an example, the report shows the interest rate for a new car loan at a Georgia credit union averaged 2.40%, compared to 3.35% at a Georgia bank. Financing a new, $25,000 automobile for 60 months at a Georgia credit union would save members an average of $126 per year in interest expense, compared to a loan from a Georgia bank. That amounts to more than $600 in savings over the life of the loan, the GCUA said.
The report also notes that Georgia credit unions offer lower average interest rates for mortgages and for credit card balances, as well as higher interest rates for deposit accounts. They also charge lower fees than banks. For example, credit card late fees averaged nearly $20 less at Georgia credit unions, and their average mortgage closing fees were more than $200 lower than those charged by banks, according to the GCUA.
Some 2.1-million Georgians are credit union members.