Saturday, February 1, 2025

SECU: With Commercial/Business Services, Should Rates Favor Businesses Over People?

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? 

Download High Quality bank clipart branch Transparent PNG Images - Art ... 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...)