The Case for Public Deposits at Credit Unions
There are several communities across South Carolina without a commercial bank where a credit union is present. Access to a credit union for public deposits will help keep money in local communities and expand the financial services available to that community (agriculture loans, home loans, etc.).
Creating competition for public deposits reduces risk for taxpayers and allows local governments to choose a banking option that best suits their needs.
Credit Unions offer the same level of deposit insurance as banks through the National Credit Union Administration (NCUA), and taxpayer funds deposited into credit unions are equally as insured as they would be in a bank.
Access to a credit union would allow local governments and other public entities to make taxpayer dollars work harder and go further. On average, credit unions offer higher returns on deposits and lower interest rates on loans than commercial banks.
South Carolina Statewide Study Shows Support for Competition
90.4% of South Carolina voters believe communities should have multiple options for financial services.
85.4% of South Carolina voters agree that credit unions play an important role in communities.
More than 65% of South Carolinians support allowing public entities to deposit funds into credit unions while less than 9.5% of oppose.
About Palmetto Public Deposits Coalition
The Palmetto Public Deposits Coalition is an alliance of community leaders, credit unions, and local government associations advocating a more competitive environment for returns on taxpayer dollars to empower South Carolina communities. The coalition is committed to ensuring that public funds are managed responsibly, with the best interests of South Carolina’s communities in mind.
