Last week, the top interest rate paid on deposits in a basic checking account in metro Atlanta was offered by a bank, according to RateWatch.
In fact, four of the five highest rates paid on checking account deposits were offered by banks. The minimum deposit for the top-rate account was $100, and only $1 at the other banks.
There’s a similar story for savings accounts. Of the five highest rates paid on savings accounts, seven banks offered one of those rates, as opposed to four credit unions. Minimum deposits for those were as low as $1.
So, if you are interest-rate conscious, the myth that credit unions offer better rates on deposits doesn’t hold up.
And there are a number of banks that continue to offer no-cost accounts or accounts with fairly easy ways to avoid monthly charges, such as by a simple direct deposit of your paycheck.
From community-based banks with a single location to large banks with many branches, there is a bank to fit any need, service and budget. These banks compete with each other and with credit unions on price, service, convenience, availability of loans and many intangibles that make them a good choice for a variety of reasons.
This competitiveness comes despite a glaring advantage credit unions have. Their prices are subsidized by as much as 40 percent because they don’t pay taxes like you, I or banks do. These taxes help finance our local schools, our men and women in uniform, and infrastructure construction — just to name a few things.
By nature, banks are able to provide many more business-related banking services that require more specialized attention and in many cases, more capital backing. For many people and businesses, consolidating personal and business relationships at one bank can result in even lower-cost accounts and higher-touch customer service.
Of course, your choice about how to best manage and protect your money also is a matter of convenience and service. Banks provide a host of payment methods that make access to your money a snap all day, every day, anywhere in the world. And, not a penny of FDIC-insured deposits has ever been lost.
And finally, credit unions are not required by regulations to invest in their communities through loans and other programs in the same way banks are. In a time when there’s lots of talk about tax equity, paying a fair share and putting loans to work in communities, that’s something to think about.
The bottom line is that banks are the best choice for families and businesses. There are 115 FDIC-insured banks in metro Atlanta that appreciate the opportunity to earn your business. They provide safe, competitive, convenient products and services to their customers, as well as tremendous community value through the taxes they pay to local, state and federal governments.
Joe Brannen is president and CEO of the Georgia Bankers Association.
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