Why are there fees?
As a valued credit union member we want you to understand the current fee structure, why it is in place, and why some members are assigned more fees than other members. Although your credit union is a not-for profit organization, it does cost money to provide high quality services. Also, no two members are exactly alike in what they need us to do for them, thus we have created our My CU Club with several membership levels.
Three ways a member can help carry a fair share in cost.
1. Borrow money as a loan
When a member borrows money, it is paid back with interest. Some of the interest received covers the expenses of serving the borrower. The rest goes back into the credit union to pay dividends to members or to be invested, thus earning more money for the entire membership.
2. Deposit your money
You can place your money on deposit at the credit union in many types of accounts insured by NCUA, a US Government Agency. While on deposit, your money earns interest for the credit union in the form of loans to other members. Most of the earnings are returned to you as dividends, and a small portion is retained to pay the expenses of caring for your money.
3. Pay fees for credit union services
When you have aggregate loan and deposit balances of just $500 or more, you begin avoiding fees listed on the fee schedule. If you have aggregate loan and deposit balances of $25,000 or more, you essentially avoid all fees.
Since your credit union is a not-for-profit organization, members are asked to pay fees to cover their fair share of cost. So, the next time you are in the credit union and it appears unfair that some members pay fees and others do not, take into consideration the fee structure at Summit Credit Union. Large borrowers do pay fees; they just pay in the form of interest on the funds they borrow. The more business you do with your credit union, the more perks you will receive in the form of fee-free services.
To access our Fee Schedule, click on the link below and then consider how you can use our My CU Club to receive the fee-free services you deserve.
