Free checking is what brought in the new members to Bethpage FCU in the second half of 2012, the big New York credit union said.
The $5.4 billion Long Island institution said a survey conducted in February of nearly 400 new members who began banking there in the second half of 2012 found that 84% opened a new free checking account. Eleven percent initially got mortgages.
In 2012, 33,440 new members joined Bethpage, a 26% increase compared to 2011, the credit union said.
The 211,900-member Bethpage said statistics from its semi-annual new member survey also found that 54% said no or low fees is what attracted them to the credit union in the first place, while 47% cited superior rates, 45% cited branch locations, 37% indicated a network of free ATMs and 38% indicating service reputation.
Twenty-eight percent cited member ownership when asked what the main difference was between a bank and a credit union.
Bethpage said its experience is reflected in the Bankrate's recent 2013 Credit Union Checking Survey which found that 72% of the nation's largest credit unions now offering free checking without a minimum balance, as compared to only 39% of banks, a 26% reduction since 2010.
“Year after year, free checking is overwhelmingly the most desired product new members request when joining, and better rates and lower fees are the most important benefit,” said Kirk Kordeleski, Bethpage president/CEO.
This tells me that consumers have a growing awareness for the credit union difference – something the banks cannot compete with,” he said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
