On today's version of CBS's Early Show, Financial Contributor Vera Gibbons touted the benefits of credit unions but gave some misleading numbers to support her position.
On today's version of CBS's Early Show, Financial Contributor Vera Gibbons implored those unhappy with their banks to leave them for credit unions. Gibbons touted the benefits of credit unions but gave some misleading numbers to support her position.
First, Gibbons states that credit union membership grew 11% in the third quarter alone. As much as we all wish her number were correct, the actual quarterly growth was 0.6%. Even if this were a misquote of an annualized figure, credit unions would still only have reported a 2.4% annualized growth figure (12-month growth was 1.9%). Second, she seems to imply that some credit union's deposits are not insured at all, which is also not the case. The NCUA insures most credit unions while others are privately insured cooperatively through ASI (up to $250k, that is). Either way, all deposits are insured. Other than that, I think credit unions have another positive instance of their story being told at the national level – something to be both celebrated and acted upon as we look to 2010.
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