Banks Pay Higher Yields on Retail Savings Deposit 7 out of 10 Years
Washington, DC - 11-1-2007 - NCUA, credit union lobbyists, and a few critics of credit union conversions to the mutual bank charter claim that the credit union tax advantage allows credit unions to pay higher rates than banks on savings. However, call report data from the FDIC and NCUA reveal that, despite the tax subsidy, in 7 out of the last 10 years, banks, rather than credit unions, paid more interest. The data validates industry and Congressional concern about about the truthfulness of NCUA's mandatory disclosure as part of a credit union to mutual savings association conversion.
