Building a Better South Carolina: Getting the Most Out of Every Tax Dollar
South Carolina's state and local governments (public entities) have an obligation to manage taxpayer dollars wisely and prudently. Currently, public entities who would like to use credit unions for financial services are forced to do business exclusively at commercial banks.
Credit unions offer key financial services like checking and savings accounts and lower-fee loans. Elected officials in South Carolina, particularly in rural areas, should have the freedom to choose the financial institution that provides the most benefit to taxpayers.
Without action, South Carolina's public entities could miss the chance to access higher interest rates on deposits and lower interest rates on loans from credit unions. Allowing public deposits at credit unions would also keep more public dollars in local communities.
Increased competition for public deposits leads to better results for taxpayers. For every $1,000,000 of public funds deposited in a credit union, the return is $17,113 in total state and local government interest and tax revenue. In contrast, the same amount deposited in a bank yields just $8,750 - a difference of $8,363, or a 96% greater net benefit from credit unions.
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