Comparing Local Bank Interest Rates
A local insurance/ financial services agency runs a regular ad in the Advocate, a popular magazine in my area. The ad lists the interest rates for ten "local banks," including one credit union. I'm not entirely sure why the insurance agency offers this info as their ad -are they supporting local financial institutions?
I mostly want to mention here that, when comparing loan and CD rates in this ad, the credit union is the way to go! For instance, last week the rate for a personal loan at most of the commerical banks was around 14%, while it was 11.99% at the credit union.
Plus, the interest one can earn on a 1 yr CD in the local commercial banks is 2-3%, while it is 4% at the credit union.
So, now I'm curious how these number compare to the big commercial banks in town --the non-local ones like TD Banknorth, and Bank of America. Since they have so much money, maybe they offer more return in their CD's...
Actually, a TD Banknorth 1 yr cd is 2.47%. Even if you take their promo, a 15 month CD and get 3.45%, it's still pays less interest than the credit union's 4%.
Bank of America, (which only lists the phone number of one of its local branches in the phone book, and lists a 1-800 number for every other branch in the area!) will pay only 3.2% on a 1 yr CD.
And what about the credit union in the town nearest to me? They will offer 3.75 on a 1 yr CD, higher than both of the huge banks.
Why don't more people use credit unions? Why don't I?
I suppose they may be less convenient --fewer branches around, fewer ATM machines to use, less ATM transactions allowed for free.
At the Franklin First credit union, which I am considering joining, one can get 4 ATM transactions from a SUM-member ATM every month without being charged. After the 4th, one is charged $1 for every ATM transaction that month. So, there is that issue. Is this the case at the other big credit union in the area?
Otherwise, there is free checking and bettter CD rates at the credit unions, and, most likely, better Money Market rates, too.
And a credit union is a coop. I'll write more about the significance of that later.
A local insurance/ financial services agency runs a regular ad in the Advocate, a popular magazine in my area. The ad lists the interest rates for ten "local banks," including one credit union. I'm not entirely sure why the insurance agency offers this info as their ad -are they supporting local financial institutions?
I mostly want to mention here that, when comparing loan and CD rates in this ad, the credit union is the way to go! For instance, last week the rate for a personal loan at most of the commerical banks was around 14%, while it was 11.99% at the credit union.
Plus, the interest one can earn on a 1 yr CD in the local commercial banks is 2-3%, while it is 4% at the credit union.
So, now I'm curious how these number compare to the big commercial banks in town --the non-local ones like TD Banknorth, and Bank of America. Since they have so much money, maybe they offer more return in their CD's...
Actually, a TD Banknorth 1 yr cd is 2.47%. Even if you take their promo, a 15 month CD and get 3.45%, it's still pays less interest than the credit union's 4%.
Bank of America, (which only lists the phone number of one of its local branches in the phone book, and lists a 1-800 number for every other branch in the area!) will pay only 3.2% on a 1 yr CD.
And what about the credit union in the town nearest to me? They will offer 3.75 on a 1 yr CD, higher than both of the huge banks.
Why don't more people use credit unions? Why don't I?
I suppose they may be less convenient --fewer branches around, fewer ATM machines to use, less ATM transactions allowed for free.
At the Franklin First credit union, which I am considering joining, one can get 4 ATM transactions from a SUM-member ATM every month without being charged. After the 4th, one is charged $1 for every ATM transaction that month. So, there is that issue. Is this the case at the other big credit union in the area?
Otherwise, there is free checking and bettter CD rates at the credit unions, and, most likely, better Money Market rates, too.
And a credit union is a coop. I'll write more about the significance of that later.
posted by oat collective at 9:49 AM
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