Report: Alabamans received more than $260 million in direct financial benefits during 12 months ending in June

Report: Alabamans received more than $260 million in direct financial benefits during 12 months ending in June

Alabama credit unions continue to offer substantial financial benefits to members, according to the Credit Union National Association’s Mid-Year 2019 Alabama Membership Benefits Report.

According to Datatrac, the research firm behind CUNA’s report, credit unions in the state provided their 2.1 million credit union members $260,007,305 in direct financial benefits during the 12 months ending in June. That means, on average, credit union members received the equivalent of $126 each and that households received an average of $264.

Credit unions are member-owned and democratic, allowing these not-for-profit financial institutions to focus their efforts on creating value for members. For-profit financial service providers are obliged to maximize profits for their third-party shareholders. But credit unions’ unique structure allows them to use their revenues to directly benefit consumers. As a result, credit union members often enjoy better service and lower fees.

Credit unions also tend to offer lower average interest rates on personal unsecured loans, fixed-rate first mortgages, adjustable-rate first mortgages, home equity loans, credit cards and new and used auto loans. An example cited in Datatrac’s report shows that financing a new $25,000 automobile for 60 months at a typical Alabama credit union would save borrowers an average of $1,350 a year over the life of the loan.

Alabama’s population stood at 4.89 million as of June 2019, which means credit unions members made up about 42% of the state’s population.

With 466 branches across the state and total assets exceeding $23 billion, Alabama’s credit unions are financially strong, convenient and provide great value. For more information or to find a credit union that’s right for you, visit yourmoneyfurther.com.

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