Credit unions, like people, tend to rely on old habits. Sometimes that’s a good policy, and sometimes it isn’t. Take the pricing of deposits, for example. Mike Schenk, CUNA deputy chief advocacy officer and chief economist, offered some insight on how some credit unions effectively, and not so effectively, price deposits.
“You can relate that to deposit pricing too,” Schenk says. “If someone has a minimal relationship with the credit union financially, you shouldn’t reward them a high interest rate and mail them free monthly statements. That’s not an efficient way to price.”
► In case you missed it: Attracting deposits is about more than raising rates.