ATLANTA, April 18, 2013 /PRNewswire/ -- In response to a rebounding economy, Georgia credit unions continued to aggressively lower interest rates, helping to save members more than $130 million last year, says a new report by Georgia Credit Union Affiliates.
According to the latest Member Benefits Index (MBI), the average interest rate for 60-month new car loans in 2012 at Georgia credit unions was 3.06 percent, compared to 4.92 percent at the state's banking institutions. Based on these differences, members saved an average $252 per year if they financed a 60-month loan for a new $25,000 automobile through a credit union instead of a bank.
The benefits of financing a used car purchase through a credit union were also substantial last year. The MBI revealed the average interest rate at Georgia credit unions for a 48-month used car loan was 3.2 percent in 2012 – 2.23 points lower than the average used car loan interest at banks (5.43 percent).
On average, Georgia credit union members saved $69 more last year than banks. The average household saved an average $130. Motivated by these savings, Georgia consumers continued to join credit unions in 2012. Membership at Georgia credit unions increased 2.3 percent in 2012, following a 3.3 percent growth the year prior.
"Credit unions consistently offer consumers better value than banks," said Mike Mercer, president and CEO of GCUA. "With back-to-back years of membership growth, Georgia credit unions continued to provide members with lower interest rates, higher savings rates and fewer fees than banks last year."
By offering better rates to consumers across new and used car loans, credit cards and mortgage rates, Georgia Credit Unions were able to save consumers even more money in 2012 versus banks.
The Georgia Credit Union Member Benefits Index, based on data collected during the 12 months ending December 2012, is the latest installment in an ongoing series of reports updated on a semiannual basis. Compiled by the Credit Union National Association (CUNA), the report leverages information compiled from banking institutions and the state's 139 credit unions.
About Georgia Credit Union Affiliates
Georgia Credit Union Affiliates (GCUA) provides services and support that help credit unions meet the financial services needs of the state's more than 1.8 million credit union members. GCUA offers advocacy, educational, operational and marketing support for Georgia's 139 credit unions, with combined total assets of more than $18 billion. More information can be found at www.georgiacreditunions.org.
SOURCE Georgia Credit Union Affiliates