Members with only savings accounts viewed as costly
LAS VEGAS REVIEW-JOURNAL Nevada Federal Credit Union has a deal for big savers: Withdraw your money and you'll get a bonus.
The credit union, one of the largest in Nevada, figures that deposits from members who don't have a checking account, mortgage loan or any other products are expensive.
Brad Beal, chief executive officer of Nevada Federal Credit Union, estimates that about 1,600 of Nevada Federal's 85,000 members only use the credit union for savings.
The financial institution typically uses member deposits, including certificates of deposit and money market accounts, to make loans, which typically bear higher rates than deposits.
Beal figures those interest-bearing accounts are a money-losing proposition in Nevada's current depressed economy.
"We don't have any loan demand right now," Beal said. [Read story at Las Vegas Review-Journal/by John G. Edwards].
Posted by Bruen
at 12:01 AM PST
Updated: Thursday, 4 March 2010 8:46 PM PST
