Studies suggest rates and fees will get worse

 

Contrary to Beehive's claims, available evidence suggests converting to a bank will mean we are charged worse rates and fees. Here’s why:

1. Virtually all studies have found that banks charge worse rates than credit unions.
2. We believe that the single study Beehive refers to in “Beehive’s Response to the NCUA’s Required Disclosures”was produced by an investment banker who profits from credit union to bank conversions, and is interpreted in a misleading way. This study has been refuted.
3. As a bank Beehive would have substantially higher costs. If Beehive converts, it may have no choice but to charge us more or lose money.

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Who Thinks Becoming a Bank Means Worse Rates?

 

Howard G. Holt, president of Utah's Brighton Bank.   "Credit unions have evolved to do everything banks can do, and in many cases they can do it cheaper because they don't pay taxes." ("Survival of the fittest? Banks vs. Credit Unions: the evolution of a financial battle," Entrepreneur.com, 08/04.)

Harris Simmons, President of Zions Banks and Former President of the American Banks Assocation.   "Credit unions control 40 percent of consumer deposits in the state, says Simmons--way more than anywhere else. He attributes the high market share to laws that have allowed credit unions to expand membership rolls beyond original mandates and the lack of taxation, which allows those competitors to offer better terms." ("Smartest Guy in the Room," American Banker, 2-2-07.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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