PEWAUKEE, Wis., Jan. 9 /PRNewswire-USNewswire/ -- The first-ever comprehensive and statistically valid study of data from the nation's state-regulated credit unions reveals that the not-for-profit financial institutions deliver direct, significant financial benefits for their member-owners as well as a wide range of services and support that improve the quality of life in their communities.

Higher rates on savings, lower rates on loans, no-cost ATMs and free or lower-fee services typify the offerings of credit unions, which are member-owned cooperatives, according to the study conducted by the National Association of State Credit Union Supervisors (NASCUS), the association of regulators for state-chartered credit unions. Typical services include:

-- Free checking with no minimum balances. Nearly 89% of state-chartered credit unions offer free share draft (checking) and debit card access. About 66 percent of state-chartered credit unions have no minimum balance requirement for these accounts.

-- Free ATMs. More than half of state-chartered credit unions offering ATMs - 51% - provide members free transactions.

-- Small, low-cost loans. Nearly all state-chartered credit unions - a whopping 96% - make unsecured loans of under $1,000 subject to state limits on interest rates and often satisfy the short-term needs of members for cash. More than 75% of the institutions offer secured loans under $1,000.

-- Financial education and counseling. Across all asset size and charter types, state-chartered credit unions are involved in financial literacy and counseling of members. Nearly half of the institutions studied have formal programs that teach wise financial decision-making and encourage thrift.

-- Community support and involvement. For example, many state-chartered credit unions provide education scholarships to members and their families, make charitable contributions, and collect for charitable causes.

"This close-up, non-partisan inspection simply sheds light on how credit union members in Wisconsin are saving $157 million a year via ownership of their financial institution," said Brett Thompson, President & CEO of The Wisconsin Credit Union League.

The study included anecdotal examples of credit union benefits - many of which are part of Wisconsin credit unions' REAL Solutions effort that builds member wealth over the long term - since some credit union benefits are more difficult to quantify. For example, credit unions have offered millions of dollars in loan interest rebates in the form of checks sent to the entire membership, courtesy calls to members before assessing overdraft fees (or much reduced fees), access to loans as small as $50, credit rebuilder programs to help people denied loans by banks, assistance to pay off payday loans obtained by storefront lenders charging excessive fees and interest, and share certificates with minimums as low as $500.

Previous to the study, the data analyzed had never been collected systematically. It was the first survey methodology used to yield statistically valid results about state-chartered credit unions, and the second study in just over a year (following a 2006 study by the federal regulator NCUA) confirming that credit unions are fulfilling their purpose: to serve members. All but two of Wisconsin's more than 260 credit unions are state-chartered.

Credit unions are cooperative financial institutions that are owned by their members and do not have stockholders. Because they are not-for-profit, they return earnings to members in the form of more competitive rates of return on accounts, lower interest on loans, lower fees and improved services. Around 2.1 million Wisconsin residents belong to credit unions, of which nearly half are open to the local community. People can find a credit union to join by looking in the phone book or by visiting http://www.creditunion.coop/

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Source: Wisconsin Credit Union League

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