ATLANTA– The League of Southeastern Credit Union has released new information on just how CU members in two states it serves—Georgia and Alabama—have benefitted from their membership.
A CUNA analysis of NCUA data estimates that Georgia credit unions provided $287.4 million in direct benefits to 2.2 million members during the one-year period between September 2020 and September 2021.
According to the LSCU, the Georgia Membership Benefits Report shows credit unions generally offer lower loan rates, higher savings rates, and fewer fees than other financial institutions. During that same one-year period from September 2020 to September 2021, Georgia credit unions saved their members a total of $130 per member or $274 per member household compared to what banks offer their customers, the league said.
“Georgians realize the benefits of being a credit union member,” said Patrick La Pine, CEO of the League of Southeastern Credit Unions & Affiliates (LSCU & Affiliates). “Credit unions across America provide several options including everyday checking and savings accounts, and even more personalized solutions that keep families out of debt. It’s all part of the credit union mission to improve financial well-being for all and advance the communities they serve.”
A Car-Parison
According to the benefits report, financing a $25,000 new car for 60 months at a Georgia credit union will save members an average of $314 per year in interest compared to what they would pay at a banking institution. Overall, Georgia members received a benefit of $206 million for all types of auto loans during the 2020-2021 annual period, the league added.
It further noted Georgia credit unions also pay members higher average dividends on savings, share draft checking, money markets, certificates, IRAs, and more. The average savings account interest rate for a credit union earns 0.14%, while a bank only earns 0.04% for members. Georgians are earning $41.2 million total in benefits from higher interest rates on savings products at credit unions.
The CUNA analysis shows the most rewarding credit union products in Georgia come from used car loans and share draft checking accounts, benefiting $133.1 million in savings for the loans and earning $18.6 million in interest when compared to banks.
The CUNA report also states that Georgia gained 50,000 new credit union members between September 2020 and September 2021.
Benefits in the Yellowhammer State
Meanwhile, in Alabama, the CUNA analysis shows Alabama credit unions provided $276.6 million in direct benefits to 2.3 million members during the one-year period between September 2020 and September 2021.
The Alabama Membership Benefits Report shows credit unions generally offer lower loan rates, higher savings rates, and fewer fees than other financial institutions. During that same one-year period from September 2020 to September 2021, Alabama credit unions saved their members a total of $118 per member or $248 per member household compared to what banks offer their customers, the LSCU said.
According to the benefits report, financing a $25,000 new car for 60 months at an Alabama credit union will save members an average of $282 per year in interest compared to what they would pay at a banking institution. Overall, Alabama credit union members received a benefit of $157.7 million for all types of auto loans during the 2020-2021 annual period, the analysis found.
Higher Savings Rates
Alabama credit unions also pay members higher average dividends on savings, share draft checking, money markets, certificates, IRAs, and more. The average savings account interest rate for a credit union earns 0.20%, while a bank only earns 0.04%. Alabamians are earning $41.9 million total in benefits from higher interest rates on savings products at credit unions, LSCU said.
The most rewarding credit union products in Alabama come from used car loans and regular savings accounts, benefiting $122.9 million in savings for the loans and earning $19.9 million in interest when compared to banks. The CUNA report also states that Alabama gained 117,000 new credit union members between September 2020 and September 2021.