 TITLE: What Is a Credit Union? CONTENT: What Are the Advantages of a Credit Union?\n------------------------------------------\nThe biggest advantage is the one that most affects your personal bottom line. If you've noticed that the money in your bank accounts isn't earning as much interest as you'd like, a credit union may be a better bet.\nHere's an example: The national average savings rate at credit unions for a five-year certificate of deposit—a type of savings account that locks in your money for a specified period of time—was 2.35% in December 2018, according to an analysis by the National Credit Union Administration (NCUA). The average rate for the same account at banks was 1.89%. Credit unions may also offer lower rates on credit cards, mortgages, car loans and home equity loans.\nBorrowers without good credit may be more likely to get a loan from a credit union than from a traditional bank. Credit unions are able to offer these benefits due to their nonprofit status and their mission to invest in the local community. They have more flexibility to offer low rates and take on riskier borrowers partly because they don't pay income tax—though they do pay state and local property and payroll taxes. END