How do banks and credit unions compare in rates and fees?
Banks usually require a higher minimum deposit of $50 to $100 to open an account. Compared to credit unions, banks generally pay customers lower interest rates on deposit accounts and higher rates on loans. Earnings from a bank are given to stockholders as profit sharing. Membership in a credit union requires a deposit of as little as $5. Credit unions offer attractive pricing that puts pressure on the other financial institutions to offer more attractive rates, although in may cases not as low as a credit union. Without credit unions, bank customers would most likely pay more for their financial services. 4. How do banks and credit unions compare in asset size and market share?* • Total credit union assets are $770 billion vs. $13.0 trillion total bank assets • The largest bank (Citigroup) has more assets, 2.2 trillion, than all US credit unions combined • Average credit union asset size is $93 million vs. $1.53 billion average bank asset size • Credit Unions have grown to $770 billio
