Although fees, deposit, and loan rates, are subject to change without notice, we strive to keep our deposit rates slightly higher than the general market and our loan rates competitive, adjusting only when necessary.
Without question, maintaining the balance between cost of funds, or interest paid on member deposits, and income we earn from interest on member loans is the key to our success.
Because we are not a bank, our goal is to return profits to our depositors by offering a respectable return and to our borrowers by keeping loan rates affordable.
Shambhala Credit Union’s Board of Directors takes a considered approach and retains ultimate responsibility for setting and reviewing deposit and loan rates and terms as well as all service fees.
As a small credit union with limited resources, Board and Staff are committed to holding steady on a reasonable middle ground. For this reason you won’t see any of our rates or fees change very often.
In fact, the Board last changed interest rates on deposits in 2012. That means saving accounts are lucrative enough to attract and keep members. But not so high that the Board needs to lower rates in an effort to improve profitability.
After 2008 most financial institutions turned to risk-based lending. By setting rates according to measurable standards, errant fluctuations in the market have largely disappeared. Instead we are seeing smaller rate differences in competing loan products.
The Board pays close attention and accommodates these small shifts by offering periodic specials. Remaining engaged in this way is much less of an administrative burden than trying to micromanage the rate on each loan type!