Rates On Savings, Loans Continue Their Slide

Average dividend rates paid by credit unions kept moving downwards last week from already record depths.

Data compiled by DataTrac Corp. shows the average paid by credit unions on regular shares slipped some more to just 1.24% last week; while the average for share drafts (checking) and money market accounts dipped two bps each to a meager 0.74% and 1.43%, respectively. Rates on all CD products continued their downward plight as well. Still, those rates were a healthy 20 BPs to 55 BPs above the average rates paid by banks on all savings products.

The good news for credit union members is that loan rates continue at 30-year lows. The average rate charged for a 48-month new car loan was 5.63%, for a 60-month new car loan 5.74%; and for used car loans of 36-months 5.86% and 48 months 5.96%. Credit unions were charging an average of 5.16% for home equity loans, 6.08% for 30-year, fixed-rate mortgages, 5.6% for 15-year, fixed-rate mortgages, and 4.47% for one-year ARMs.

DataTrac follows rates paid by more than 8,000 depository institutions, including 1,000 credit unions.