Market Overview

NAFCU: One Year After Bank Transfer Day, Credit Unions Are Still a Great Deal

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WASHINGTON--(BUSINESS WIRE)--

Today marks one year since Bank Transfer Day, an online movement which caused consumers fed up with Wall Street banks to move their money to member-owned, not-for-profit credit unions. Credit unions gained 2.2 million members over the past year.

“Credit unions have always been and continue to be a great deal for consumers,” said Karen Tyson, National Association of Federal Credit Unions (NAFCU) senior vice president of marketing and communications. “Joining or switching is easy and the lower fees, better rates, convenience and outstanding service make it worthwhile.”

Still wondering about joining a credit union? NAFCU helps you make the switch by debunking some popular credit union myths:

  • MYTH: It's difficult to find a credit union to join.
    FACT: You might be surprised at how many credit unions you are eligible to join, based on where you live, work or even worship. Visit www.culookup.com to find one.
  • MYTH: Making the move takes too much time and effort.
    FACT: It takes only a matter of minutes to open a new account, transfer funds and implement your automatic bill payment options. And many credit unions have online forms or ‘switch kits' that help make the transition even smoother.
  • MYTH: Credit unions have limited products and services.
    FACT: Credit unions offer a wide range of products, including savings/checking accounts, debit cards, credit cards, IRAs, auto and mortgage loans, and online banking. At most credit unions, you can open an account for as little as $5 and the majority still offer no-fee checking. Credit unions also offer access to tens of thousands of free ATMs nationwide, including at key 7-Eleven locations, rivaling the accessibility of bank networks.
  • MYTH: Funds in my credit union are not insured by the FDIC.
    FACT: Deposits in the nation's federal credit unions are federally insured through the National Credit Union Administration, which carries the full faith-and-credit guarantee of the federal government, just like the FDIC.
  • MYTH: There are few benefits to credit union membership.
    FACT: There are actually many benefits to joining a credit union. Because of their cooperative, not-for-profit nature, members typically enjoy no- or low-fee checking accounts and lower interest rates on credit cards and loans. Another advantage is that members are part-owners of their credit union and have a say in how it is operated.

The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

National Association of Federal Credit Unions
Patty Briotta, 703-200-4600
pbriotta@nafcu.org

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