What’s Behind Credit Union Rate Decisions

Hopewell Federal Credit Union exists to serve member-owners like you. That’s why our rates and fees tend to be better than those at for-profit financial institutions. One recent study showed that the average credit union member household saves over $154 a year by using credit unions rather than commercial banks.

We take many things into account when setting rates and fees.

First, the credit union must earn enough money to pay its employees, utility bills, rent, data processing, and other expenses. Then, the credit union must build and maintain a financial cushion.

Of course, any business has to keep an eye on the competition. At minimum, Hopewell Federal Credit Union tries to offer rates that are attractive relative to local competitors.

When pricing products and services, we also must gauge how decisions will influence the credit union’s risk profile. And, economic conditions heavily influence rates on loans and savings accounts.

Hopewell Federal Credit Union’s pricing decisions can be complicated. In the end, the credit union difference–member-ownership with a democratically elected volunteer board–helps ensure that members get a fair deal.


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