SAN FRANCISCO (KCBS)— America’s banking frustrations could be a major factor in a recent trend that has resulted in the rise of credit union membership. Some speculate bank fees and the Occupy Wall Street movement have contributed to the influx of new customers.
Last year alone, the financial institutions gained 1.3 million new customers. Since 2006 a seven percent increase in credit union membership has been reported.
John Worth, the chief economist at the National Credit Union Administration, said it’s hard to pinpoint a reason, but agrees the public may be going through an “attitude” adjustment.
KCBS’ Jane McMillan Reports:
Worth added that he’s not sure it’s so much dissatisfaction with other types of financial institutions as much as it is recognition that credit unions are a “good place to manage your money”.
Unlike banks, credit unions are non-profit so they can often offer low fees and interest rates. Worth said deposits are guaranteed.
“It’s backed by the federal government by the full faith and credit of the U.S. In terms of the safety of your money, it’s exactly the same,” he said.
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)