CORONAVIRUS UPDATE

ALL BRANCHES WILL BE CLOSED ON 4/10 IN OBSERVANCE OF THE GOOD FRIDAY HOLIDAY. Effective immediately, all branches will be closing Monday through Friday at 5PM with the exception of the Greenville Branch which will close on Thursdays at 4PM. We will remain open on Saturdays. Click here for hours.
Our Annual Meeting scheduled for April 15th has been postponed to a later date to be determined. We will be waiving Courtesy Pay fees for cash withdrawals incurred at the ATM. Fee refunds will be available the following day. See the latest updates on branch closures, operations updates and how we're addressing the COVID-19 (Coronavirus) pandemic. Click here for details.

Credit Union Vs. Bank Fee Advantages Continues


Consumers can still find a healthy price advantage on fees associated with account overdrafts at credit unions compared to banks, according to Mike Schenk, the Credit Union National Association’s vice president of economics and statistics.

“Based on Informa Research Services daily rate comparison of thousands of banks and credit unions nationwide, credit unions on average charge nearly $3.00 less for non-sufficient fund (NSF) fees than do banks; $28.08 compared with $30.81.”

Schenk’s reminder was prompted by a widely publicized article that claimed that while credit unions still charged less on NSFs, banks had closed that gap to $1. The article cited a Moebs Services figure that more than 40 million Americans overdraw their checking accounts every year.

“Even at the $1 difference, credit unions would be saving consumers millions of dollars,” Schenk pointed out. “However, Informa data suggests credit unions are saving members almost three times what the article implies.”

Schenk added that it is important to note that what really matters is not simply the size of the fees an institution advertises but how likely those fees are to be imposed.

Research shows that on an all-in basis credit union members pay less than one-half the amount bank customers pay on their checking accounts annually. In a comprehensive panel study of consumers’ detailed bank and credit union account statements, researchers Victor Stango (UC-Davis) and Johnathan Zinman (Dartmouth) found that credit union members incurred an annual average of $72 in total checking fees whereas bank customers incurred an annual average $183.

In fact, the researchers also found that credit union members with low balance accounts paid less in annual total checking account fees than did bank customers with high balance accounts.

Consumers not only benefit from lower credit union fees, but also from lower loan rates and higher savings rates, Schenk reminded.

He noted the average interest rate on a credit union 5-year new car loan is 2.58% today while the average interest rate on a similar bank loan is 3.59%–a 1.21 percentage point difference. That difference will result in an approximate $975 savings over the 5-year life of a $30,000 new car loan.

Do you love the benefits of being a credit union member? Share your love with family too! Immediate family members are always eligible to join if you’re a member, or we have a list of many other membership eligibilities on our website.

Third Party Disclaimer

By accessing the noted link you will be leaving Liberty Savings Federal Credit Union's website and entering a website hosted by another party. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Liberty Savings Federal Credit Union's website. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Liberty Savings Federal Credit Union.


Continue