by: Ellen Chang
The interest rates Taylor Rogich getsfor his car and personal loans from his credit unionare much lower than those from histraditional bank. That means the 24-year-old in Coconut Creek, Fla. will save hundreds of dollars over several years.
It was theprospect of keeping thatextra cash that droveRogich to open hisaccount 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.