2026 Undergraduate Research Showcase

Idaho Consumers Can Benefit from Bank and Credit Union Shopping

Document Type

Student Presentation

Presentation Date

4-24-2026

Faculty Sponsor

Dr. Kyle Allen

Abstract

This study examines how differences in interest rates across financial institutions affect the long-term financial outcomes of Idaho consumers. Using data collected from the ten largest community banks and ten largest credit unions serving Idaho, the research compares mortgage, auto loan, savings account, and certificate of deposit (CD) rates to estimate how lender choice influences household costs and returns. The findings show substantial variation in rates across institutions, with credit unions generally offering slightly lower borrowing rates than community banks. For a typical $450,000 mortgage, these differences can translate into approximately $16,000 in savings over the life of a 30-year loan, while the spread between the highest and lowest available rates can exceed $78,000. Similar patterns appear in auto lending, where rate differences can add thousands of dollars in additional interest, and in savings products, where the gap between the highest and lowest returns can significantly affect long-term earnings. The results highlight the economic importance of financial literacy and rate comparison when selecting financial institutions. Even small percentage differences accumulate over time, meaning informed financial decision-making can improve household financial stability and help Idaho consumers retain more of their income over the long term.

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