The interest rates Taylor Rogich gets for his car and personal loans from his credit union are much lower than those from his traditional bank. That means the 24-year-old in Coconut Creek, Fla. will save hundreds of dollars over several years.
It was the prospect of keeping that extra cash that drove Rogich to open his account at Navy Federal Credit Union to use for loans, instead of sticking only with a traditional bank.
“I primarily use Bank of America for direct deposit and to pay monthly bills, but the benefits I receive from Navy Federal are phenomenally better,” he said.
Rogich isn't alone in eschewing traditional brick-and-mortar banks and joining credit unions for cheaper loans and better customer service. Between 2013 and 2014, nearly 2 million Millennials became members of credit unions, a 2% increase, said the Credit Union National Association, a Washington, D.C. trade group. Gen X-ers are also switching: 1.9 million opened accounts in the same period, and now 28% of credit union account holders are Millennials and 26% are Gen X-ers.
Click here to view the top seven reasons millennials have found credit unions to be a better fit for their needs.