WASHINGTON—Credit unions continue to offer significantly better deals on checking accounts, according to a new WalletHub study that shows CUs charge 70% less in fees than national banks and pay rates that are nearly 10-times higher than regional banks.
Credit unions also lead the way when it comes to savings accounts, offering average interest rates six-times higher than national banks, the Q3 2014 Banking Landscape Report revealed. The study tracks more than 2,000 checking accounts and savings accounts available to general consumers, small business owners and students from financial institutions nationwide. Key points from the report:
- Interest rates for checking accounts fell 3.23% during Q3, while rates for savings accounts almost remained constant with a decline of 0.11%.
- Personal online savings accounts offer the highest interest rates— on average 57% higher than online checking accounts, the next best alternative.
- Business checking accounts, despite a slight improvement in their offerings, still represent a bad deal for users, according to WalletHub, charging 115% more than personal online accounts and providing 42% fewer features and 72% less interest.
- Students receive the cheapest checking accounts on the market, with fees that are 45% lower than those charged by personal online accounts. However, they have 11% fewer features and 87% lower interest rates.