Georgia credit unions say they saved members more than $130 million last year by offering better rates on car loans and credit cards, but the industry’s figures show banks had a slight edge in providing more competitive rates on various mortgages.
According to a new report by Georgia Credit Union Affiliates, the average interest rate on a 60-month new car loan last year was 3.06 percent at state credit unions, compared with 4.92 percent at Georgia banks. The average rate on a 48-month used car loan was 3.20 percent at credit unions, compared with 5.43 percent at banks.
The average rate on regular credit cards last year was 11.52 percent at credit unions, compared with 14.25 percent for bank-issued cards. The credit unions’ average rate for their best credit card customers was 10.69 percent, compared with 11.57 percent for bank cards in that category.
With mortgages, however, the analysis shows banks last year had a slight edge over credit unions on interest rates. For example, the average rate on a 30-year fixed first mortgage with no points was 3.92 percent at credit unions but 3.74 percent at banks. For a 15-year fixed mortgage, the average rate was 3.28 percent at credit unions but 3.09 percent at banks.
Credit Unions offered better interest rates on savings products and their fees were lower on average for credit card late payments, bounced checks and mortgage closing costs.
“With back-to-back years of membership growth, Georgia credit unions continued to provide members with lower interest rates, higher savings rates and fewer fees than banks last year,” GCUA President Mike Mercer said. Membership among the state’s 139 credit unions rose 2 percent to nearly1.9 million members t last year, following 3 percent the year before.
The data used for the study was compiled by the Credit Union National Association.
About the Author
