😎 The latest "From the Top": "I’m proud to report that the lower earnings resulted in more money in the pockets of our members in the form of higher deposit rates, something that I set as a goal for our team. Our money market rate is a strong 2% now..."
✅ Ally Bank is paying 4.15%, Amex Bank is paying 4.25%, Apple Savings is paying 4.15%... and that's just the first letter of the bank alphabet! (not to mention Fidelity at 2.72%, CapitalOne at 3.5%, and Vanguard at 4.5%!)
Here's the track record for the "new/new" since the takeover in September, 2021:
1) Member Money Market Account Balances:
June 30, 2022 - $24.1 billion
June 30, 2024 - $15.5 billion [rate: "a strong 2%"]
2) Member Share Account Balances:
June 30, 2022 - $8.6 billion
June 30, 2024 - $7.1 billion [rate: "a strong 0.25%"]
✅ SECU has lost $10.1 billion from these two core categories of member savings over the last 2 years. SECU has attempted to stem the bleeding by offering more competitive short term CD rates, but overall total deposits have not recovered (Total deposits: June 30, 2022 - $47.1 billion, June 30, 2024 - $45.5 billion).
😎 But here's the real rub. The balances in member share and money market accounts total $22.6 billion - earning 2% or less. That $22.6 billion represents 50% (well, almost - 49.67%) of total member deposits of $45.5 billion. Does "From the Top" believe the members won't wake up to the dramatically better rates readily available? If the members do awake, what will SECU do? (Couldn't find that answer among the fluff in the "SECU Strategic Plan"! [link])
When the Washington Post says this about inflation: "Grocery prices have jumped by 25 percent over the past four years, outpacing overall inflation of 19 percent during the same period." A "strong 2%" (or much less) rate is not exactly a cause for celebration among the membership.
A better message "From the Top" might surely have been an announcement: "We have lowered SECU credit card rates from 13.00%/16.00% to...."!
... celebrate SECU charging me 13.00%/16.00% on my card, while paying me "a strong 2%" (or less) on my savings?
