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When making financial decisions, such as where to bank or borrow, the most important thing you can do is to know the rates of credit unions. Unlike big commercial banks, credit unions are not-profit and owned by the members, meaning that they reinvest their profits into the members in the form of lower loan rates and increased savings dividends.
Be it comparing the auto loan rates, personal loan rates or share and savings rates, understanding how these figures operate, and what influences them, can assist you in getting the best value out of your money.
Credit union rates represent the interest or dividend amounts applied to your deposits and loans. For borrowers, this means how much you pay back in addition to the amount you borrowed. For savers, it’s how much you earn for keeping money in your account.
Unlike banks that focus on maximizing shareholder profits, credit unions operate under a cooperative model. That means any surplus income is returned to members as better rates, lower fees, and improved services.
For example, institutions like the West Orange Municipal Federal Credit Union reinvest directly into their community and member programs, keeping financial products competitive and affordable for everyone they serve.
When shopping for an auto loan, the Annual Percentage Rate (APR) is your key comparison point. This rate includes both the interest charged on the loan and any associated fees, giving you the true cost of borrowing.
Credit unions generally offer lower auto loan APRs than banks or dealerships. According to data from the National Credit Union Administration (NCUA), the average new car loan rate at credit unions can be up to 1%–2% lower than at traditional banks. Over a five-year loan, that difference can save borrowers hundreds of dollars.
Here’s what to look for when comparing credit union auto loan rates:
By securing your auto loan through a local institution like WOMFCU, you can enjoy a fair rate, flexible repayment terms, and the confidence that your lender truly prioritizes your financial well-being.
Personal loans provide a flexible solution to debt consolidation, emergency costs, or home renovation. As they are usually not secured (no collateral is needed), the rates may differ greatly among lenders.
The credit unions are unique since they do not only rely on algorithms to assess the borrowers. This is a human practice that tends to produce reduced rates particularly to the members who are employed regularly and have a good track record of repayment.
Prior to application, determine whether your credit union provides varying rate levels depending on the length of membership or payroll deposit. Most credit unions such as WOMFCU are offering loyal members a discount on their rates.
It’s also smart to review resources like Bankrate to see how average national personal loan rates compare to your local credit union’s offerings. You’ll often find that credit union rates are significantly lower — sometimes by several percentage points — making them a better choice for affordable borrowing.
When you deposit money into a share account (the credit union equivalent of a savings account), you earn dividends instead of interest. These share and savings rates reflect how much the credit union pays you for keeping funds in your account.
Because credit unions are member-focused, they typically offer higher dividend rates than large national banks. For example, a credit union savings account might pay 0.30% APY while a major bank offers only 0.01%. It may seem small, but over time that difference can make your savings grow faster.
For members who want to earn even more, many credit unions offer share certificates (similar to CDs) with fixed terms and higher rates. The longer you commit your funds, the higher your dividend return.
When comparing savings rates, pay attention to:
With credit unions like WOMFCU, you not only earn more on your deposits but also help support local lending programs that strengthen the West Orange community.
The key reason credit union rates outperform banks lies in their structure. Credit unions are cooperative financial institutions, owned by their members rather than shareholders. Profits are returned in the form of:
That means when you take out a loan or open a savings account at your local credit union, you’re not just a customer — you’re a stakeholder. Every financial decision benefits you and your neighbors, not distant investors.
This member-first model ensures that credit unions like the West Orange Municipal Federal Credit Union continue offering fair, transparent, and competitive rates year after year.
When comparing financial products, always look beyond the advertised rate. Consider membership perks, flexibility, and customer support — areas where credit unions consistently excel. Whether you’re financing a car, consolidating debt, or growing your savings, choosing a local credit union ensures your money is working for you and your community.
To explore current auto, personal, and savings rates, visit West Orange Municipal Federal Credit Union and speak with a member service representative who can guide you through your best options.
By understanding how credit union rates work — and how to compare them effectively — you can make confident, informed choices that build lasting financial stability while supporting the cooperative values that keep West Orange strong.
