Credit unions are commonly known for the low loan rates and better return on deposits that they’re able to offer their members when compared to big banks. That’s because of credit unions’ not-for-profit structure.
According to Bankrate, over the past 10 years, credit unions have beaten banks in the following areas:
- 55 basis points* on savings accounts.
- 79 basis points on 1-year CDs.
- 107 basis points on 5-year CDs.
In other words, if you have money on deposit at a bank rather than your credit union, you’re not making as much money as you can.
*One basis point is defined as one-hundredth of a percentage point