We took a look at this question in the 1/30/2025 post [link] which pointed out that LGFCU/CIVIC has chosen to pay businesses a higher rate on money market accounts (2.76%) than members (2.01%). The issue being, if SECU enters into commercial services how will it deal with this problem - will individual SECU members also get the shaft?
All agree that "business banking" is a different animal from consumer "credit unioning" - different rules, different risks, different service requirements... and now different rates. Hope it's obvious that this question doesn't arise in "real banks"; businesses come first, that's why they are called "commercial banks".
There was some dispute about whether or not LGFCU/CIVIC was also favoring business on the lending side. The NCUA data which was used in that post [see here] was as of 9/30/2024, so here is the latest comparison 12/31/2024:
SECU
LGFCU
Still appears that at 3.25%, commercial lending is the lowest priced lending at LGFCU.
✅ What may be of greater concern to SECU members is that on the consumer lending side, LGFCU appears to be offering lower rates on member credit cards (14% vs. 15.50%), member home equity loans (3.25%! vs 5.88%), member new (5.25% vs 8.25%) and used auto loans (3.95%! vs 7.75%). ** LGFCU has an open membership, anybody can join as of "independence Day" in June.
** There was some controversy about whether LGFCU reported correctly in September, 2024. Looked up the NCUA reporting rule: "Interest Rates. Report loan interest rates being offered as of the reporting period for each loan category. Report the actual rate (report 6.5 for 6.5%). If more than one rate applies, report the most common rate in each loan category [link to ncua] - page 44]" (Same rule for all credit unions.)
Would appear that LGFCU members "most commonly" are enjoying lower rates than SECU members?!? (That doesn't sound right.)
😎 Hate to bring up Chick-Fil-A again (best fast food franchise, most profitable, best service!), but shouldn't SECU try to get its "chicken sandwich house" in order first, before considering offering a mediocre hamburger, too?
Anybody can join??? At the branch just start asking for an LGFCU loan instead? (This may get interesting...)
