Natalie Ludewig is one in a hundred million.
By joining a credit union this summer, Ludewig became one of 100 million credit union customers nationwide, and 5 million in New York state.
Credit unions are snapping up customers at a rapid clip, according to the Credit Union National Association, which released these startling stats last week.
And that’s thanks to lower interest rates on loans and higher yields on savings than many banks offer.
The difference between the structure of credit unions and banks is that credit unions are member-owned, nonprofit organizations while banks seek profits for shareholders.
“When I took my first credit union job . . . people would ask, is that a union — what is it?” said Robert G. Allen, CEO of Smithtown-based Teachers Federal Credit Union, which boasts 241,000 members and assets of just under $5 billion. “The public’s awareness of credit unions has grown dramatically.”
The one caveat with credit unions is depositor insurance. All credit unions in New York and the surrounding areas are covered by the National Credit Union Administration, which is the equivalent of the FDIC. Depositors are covered up to $250,000.
Like many consumers, Ludewig had heard of credit unions, but wasn’t sure she could join. That misconception is a legacy from earlier days of tighter membership rules. Today, not everyone can join every credit union, but consumers can find one for which they are eligible on asmarterchoice.org.
For Ludewig, grousing about the auto-loan offered by a major bank — 8.9 percent for 48 months — led her mother-in-law to suggest a credit union. An online search brought Ludewig to Municipal Credit Union, which offered her a 3.45 percent loan with a 60-month term. She got her new car last week.
Other New Yorkers, including Long Island-based music teacher Lou Panacciulli, are turning to credit unions for business accounts.
Panacciulli is a long-time credit union member and music director of the Nassau Pops Symphony Orchestra, which moved its account to the Nassau Educators Federal Credit Union last year.
Panacciulli recommended the switch after the credit union became a sponsor of the symphony’s annual benefit concert for the United Cerebral Palsy Association of Nassau County.
He said the credit union offers the right mix of updated technology, including check deposits via iPhone, and old-fashioned customer service.