Page 5 - Michigan Credit Union League: CU Impact Report

FALL 2020 CREDIT UNION IMPACT REPORT 5

NOT-FOR-PROFIT BENEFITS

NEVER FOR PROFIT, $441 million
ALWAYS FOR MEMBERS

The purpose of credit unions’ cooperative structure, in direct financial
where members are also owners, is to create a
partnership between financial institutions and their benefits to
members — a relationship that allows for trust and
mutual benefit. 5.6 million

By design, our industry is not for profit. Michigan credit
unions offer products and services aimed at creating members
and sustaining personal financial health and building
communities. Alongside youth education initiatives,
financial counseling, volunteer work and many other
services, credit unions have lower rates and fees across
the board of loan and account products. $81

CUNA’s Q1 2020 data shows that these lower rates and
fees, as well as higher CD rates and fee-free checking per member
contributed to a total of $441 million in direct financial
benefits to Michigan’s 5.6 million members over
the previous twelve months. This is equal to $81 per
member or $170 million per member household.* $170

*These stats are based on average savings differences per household
between credit union and bank pricing.

INTEREST RATES (%) CREDIT UNIONS VS. BANKS

Michigan Banks 14.75
Michigan Credit Unions

10.84
9.94
9.14

4.29 4.53 4.52 5.01
3.43 3.45

60 - month 48 - month Unsecured loan Home equity / Credit card
new car new car 2nd mtg.