4 Reasons to Celebrate International Credit Union Day

International Credit Union Day 2016 is this Thursday, October 20th. Across the globe, credit unions and their passionate members will celebrate in a variety of ways. Some credit unions might offer one-day financial incentives, or provide some lite, celebratory food and beverages at branch locations, as their members rally around to show appreciation.

Credit Unions Vs. Banks

The celebration of International Credit Union Day is based largely on important benefits credit unions offer that traditional banks usually don’t. Below are four examples of these benefits. As an American Eagle Credit Union member, you have plenty of reasons to celebrate how your membership benefits you, your family, friends and neighbors.

  1. Lower Loan Interest Rates

Credit unions are known for having lower loan interest rates than banks. In 2015, SNL Financial and the National Credit Union Administration reported that the average credit union credit card annual interest rate (APR) was 11.39%, the average credit union rate for new car loans was 2.69%, and the average credit union rate for a 30-year fixed mortgage was 3.92%. At banks, interest rates for the same products were 12.48%, 4.10%, and 3.94%, respectively.

  1. Higher Savings Interest Rates

SNL Financial and the National Credit Union Administration also found that credit unions have higher interest rates for savings accounts than banks. At credit unions, 5-year CDs, 1-year CDs, money market accounts, and savings accounts had averaged interest rates of 1.47%, .46%, .18%, and .14%, respectively. Interest rates at banks for the same financial vehicles were .95%, .25%, .08%, and .08%, respectively.     

  1. More Flexible Loan Approval

It’s relatively well-known that a bank might turn you down for a loan that a credit union might approve you for instead. One reason why is that, unlike many traditional banks, credit unions typically don’t have a sea of shareholder expectations to consider.

Credit unions are nonprofit institutions that needn’t worry about increasing the annual bottom line with the sole interests of mercenary investors in mind. If your credit score has seen better days, you typically have a better chance of securing a favorable loan from a credit union than a bank.         

  1. Personalized Customer Service

Because many credit unions exclusively or primarily serve a tight knit group of customers who share an official affiliation — such as working for the same company or living in the same geographic region — providing a high level of personalized service is common at credit unions. 

This level of service is typified by things such as knowing customers on a first name basis, providing a high level of friendly engagement at the teller counter and during sit downs, and knowing customers’ financial wants and needs without constantly consulting their files.       

Share with Your Friends and Neighbors the Benefits of Being a Member     

Share the good news with your friends and neighbors regarding the benefits of being a part of a member-owned credit union and to celebrate International Credit Union Day by encouraging them to become a member of American Eagle Credit Union. Call us today at (800) 325-9905, or fill out the contact form on our website, to receive details.

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