Credit Unions: Membership Has its Privileges

Credit Unions are no longer the best kept secret of the financial world. According to the Credit Union National Association (CUNA), as of mid-2014:

• Credit union memberships total 100.1 million and assets exceed $1,125 billion.

• Credit union savings stand at $961 billion, while loans total $689 billion.

• There are 6,671 credit unions. Some 4,027 are federally chartered, and 2,644 are chartered under laws of various states and Puerto Rico.

• Credit union memberships are now growing at more than two times the rate of U.S. population growth.

In California, there are 377 chartered credit unions, with a combined total of nearly 10 million members. Basically, one-fourth of the state population belongs to a credit union. Nationally, the credit union movement has continued on a meteoric rise for several decades. In 1970, 23 million Americans belonged to a CU. By 2000, that number soared to 80 million. Today, there are over 100 million credit union members in the U.S. 

In 2014, credit union members throughout the U.S. reaped some $7.3 billion in financial benefits. That’s an average of $140 per member household according to Credit Union National Association’s economics and statistics department. 

Why are credit unions consistently biting into the banks’ market share? 

Credit unions save members money by charging lower interest rates on loans and paying higher interest or dividends on deposit accounts and investments. They also charge fewer and lower fees. So the more you use our credit union, the more you save … and the more you earn. 

Consider this: Financing a $20,000 new car for 48 months at AltaOne Federal Credit Union at our special promo rate would likely save you up to $300 per year or more over a major national banks. That is a savings of $1,200-plus over the span of the four-year loan.

Across the board, you will see the same kind of rate advantages on loans and deposits with AltaOne and other credit unions. Even though the vast majority of credit unions cannot match the marketing power of national banks, consumers have been attracted to CUs like bears to honey, mostly due to the sizeable membership benefits. In addition to the rate advantages, credit unions traditionally charge low or no service fees compared with banks. And now that credit unions such as AltaOne have greatly enhanced their services such as online banking and mobile apps, it is really a no-brainer when it comes to choice.

The bottom line – AltaOne exists for its members. We do not answer to stockholders. We are a not-for-profit organization and our vision is to be the community’s choice for their financial services throughout all stages of life.

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Smart Savings for All Life Stages

There is no doubt that in today’s low interest environment it is challenging to put your money to work for you. In addition to finding the right financial institution that is going to offer the best possible return on your deposits, it is also important to determine the best savings vehicle for your current life stage.

Your savings needs typically vary a great deal as your life and circumstances change. No matter where you are in life -- whether you are a child, teen, young adult or retiree – it is vital that you learn which savings options are best.

Youngsters: Type of account: Basic savings account with a parent

It is never too early to begin teaching your little ones about the value of saving. (OK – maybe you can wait until they can talk.) Many financial institutions such as AltaOne offer savings accounts for children, as well as programs to help them to understand the basics of money management. AltaOne’s CUB Club program rewards little tykes for saving with fun gifts such as “Super Saver Capes.” It is amazing to see how quickly a child learns the value of fiscal responsibility when it is taught to them at an early age.

Teens: Savings accounts, youth certificates, college funds

As your children hit their teen years, they should already be fairly astute savers. The savings products offered by financial institutions become a bit more sophisticated for this age group. Some organizations provide interactive programs and games to help teens enhance their financial IQ. AltaOne’s Successful Savings for Teens program includes savings accounts, and even teen certificates, Visa cards and loans for those who qualify.

Young adults: online banking, mobility, online account opening

Millennials (18-34 year old consumers) have grown up on technology. Many have yet to realize the value of face-to-face interaction with professional credit union representatives. Therefore, most quality financial organizations provide online banking services that include mobile apps, BillPayer and online account opening.

Thirty- and forty-somethings: Money market savings account, certificates

As consumers enter their thirties, they are raising families, purchasing homes and realizing a greater need to save for their future. This is when products such as money market funds and certificates should peak your interest. This is also a good time to begin scheduling regular financial “check-ups” to better understand the best long-term options for your needs.

Fifty-plus and retirees: High-yield savings account

Hopefully, as you enter your fifties and beyond, you have been able to manage your money wisely and are in a position to set yourself up for a relaxing retirement. This is the time when solid wealth management advisors can help. They may recommend a variety of products to fit your needs, such as securities, variable and fixed annuities and retirement plans.

As you can see, there are numerous savings products available. These suggestions are certainly not etched in stone. Conduct some research, chat with the pros at your financial institution and determine for yourself what is best for you and your family throughout your life.

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