SALT LAKE CITY — In an effort to reassure its members contemplating a vote to change their credit union to a mutual bank charter, the $186 million Beehive Credit Union has promised members that, as a bank, it will not raise any fees on consumer deposit account for at least two years after the conversion and will keep interest rates on two loans and one deposit at 0.25% of the average rates on those loans at the five largest CUs in Beehive's market.

The loans and deposit accounts are the five year new car loan, the home equity line of credit and the one year certificate of deposit.

The promise accompanies a somewhat lengthy discussion in which Beehive suggests that its research, based in part on an article by Peter Duffy, an executive with an investment bank which makes money on the stock offerings of converted credit unions, shows that converted CUs actually offer higher rates on deposits and charge lower rates on loans than do CUs of over $100 million.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.