This page uses JavaScript. Your browser either does not support JavaScript or you have it turned off. To see this page properly please use a JavaScript enabled browser.
Sandia Laboratory Federal Credit Union Sandia Laboratory Federal Credit Union Go to main content
Personal Routing #307083911|
Login
CU@home Online Banking
Business Online Banking
Business Online BillPayer
Business Credit Card
Manage a Home Loan
Manage a Student or Consolidation Loan
Return to a Saved Application
Return to a Saved Mortgage Application

How SLFCU Sets Rates on 3/30/2017

SLFCU strives to price our products in a way that both benefits members and keeps their money safe. Robert Chavez, SLFCU’s President/CEO, explains three factors that determine the pricing of deposits and loans at the Credit Union.

NATIONAL MONETARY POLICIES

“There are a number of different tactics and strategies that the government uses to drive economic and monetary activity,” Chavez says. “Government mandates and regulations, as well as Treasury Security rates, all affect pricing at SLFCU.”

SLFCU closely watches the interest rates set by the Federal Reserve, as well as other federally maintained rates. Changes in federal rates could indicate a need for SLFCU to adjust rates accordingly.

THE COMPETITIVE ENVIRONMENT

Competitors’ rates aren’t always as good as they look. SLFCU is proud to offer rates and products that are straightforward and easy to understand. “Many institutions still offer teaser rates,” Chavez says, “even though the government has had to curb some of the more deceptive pricing tactics”

On a weekly basis, SLFCU considers the competitive rate environment to help guide decisions about whether to change rates. SLFCU’s rates are among the best in the Albuquerque market.

SLFCU’S FINANCIAL NEEDS

SLFCU strives to balance loan and deposit rates. Chavez says, “We could offer lower rates on the loans we make, but that would mean we’d have to pay lower dividend rates on the deposit products we offer. Conversely, we could offer higher rates on deposits, but that would mean we’d have to charge higher loan rates.”

Income from interest paid by members on loans must be balanced against interest paid to members for deposits. SLFCU reviews the spread between these amounts regularly to help make decisions about rate changes.

“If you have both loans and deposits at SLFCU, you are getting the best value from your member-owned credit union,” Chavez says.

Share: Share on Facebook Share on Twitter Share on Google+


« Return to "SLFCU News"