Are you concerned about Federal Reserve rate hikes? Don’t overlook savings at credit unions.

As a journalist who cares about personal finance, it always surprises me how little people know about credit unions. Even seasoned investors are often unaware of the benefits of joining one, such as higher interest rates on savings accounts and lower interest rates on loans. With the Federal Reserve’s recent rate hikes causing concern among consumers, it’s more important than ever to explore alternatives to traditional banks.

The Federal Reserve and its effects on consumers

The Federal Reserve has raised interest rates multiple times in the past year and is expected to do so again shortly. While these rate hikes are meant to control inflation and keep the economy stable, they can negatively affect consumers. For example, credit card and mortgage rates may increase, meaning borrowers will spend more on interest.

The advantages of credit unions

Credit unions, member-owned financial cooperatives, offer several advantages over traditional banks. First and foremost, credit unions typically offer higher interest rates on savings accounts, CDs, and money market accounts. This means your money will earn more money over time.

Credit unions often have lower interest rates on loans, including credit cards, auto loans, and mortgages. This can save you a significant amount of money in interest payments over the life of the loan.

Another benefit of credit unions is their focus on customer service. Since they are not-for-profit and are owned by their members, credit unions prioritize the needs of their members over profits. You can expect personalized service and special perks, such as free financial counseling and education.

Related facts

• In 2017, the National Credit Union Administration reported that credit unions’ average savings account interest rate was 0.18%, compared to 0.07% at banks.
• According to a study by Bankrate, credit unions had lower interest rates than banks on every type of loan they analyzed, including mortgages, home equity loans, auto loans, and credit cards.
• Credit unions are member-owned and democratically run, meaning each member has a say in how the credit union operates.

Key takeaway

With rate hikes from the Federal Reserve causing concern among consumers, it’s crucial to explore your options for saving and borrowing money. Credit unions offer higher interest rates, lower loan rates than traditional banks, and personalized customer service. Don’t overlook the benefits of joining one in your community.

Conclusion

As a journalist, I urge readers to consider credit unions a viable alternative to traditional banks. With the Federal Reserve continuing to raise interest rates, finding ways to save money and reduce debt is more important than ever. By joining a credit union, you can take advantage of higher interest rates and lower loan rates, all while receiving personalized service and support from a democratically-run financial cooperative.