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.