For the last several years, rates of return on savings accounts have held close to flat - but flat is no longer the case at Royal Credit Union. Today, the $1.5B financial announced it is raising rates significantly on its basic savings accounts, moving the needle from .15 APY to .40 APY.
Jon Hehli, Chief Financial Officer, said that while there are murmurs from the Federal Reserve in Washington about an impending rate increase in 2015, the boost in savings returns is just one part of Royal Credit Union's philosophy of giving back to their Members and their home communities.
"If our Members trust us with their savings, that's their future," said Hehli. "We think that's worth something. That's why we're getting out ahead of the Fed and giving our savings rates a nice boost, now."
Since 2012, Royal Credit Union has made a number of moves to not only keep deposit rates high and loan rates low, but also to reduce fees across the board. In that time, Royal has reduced approximately $4.5M in Member fees.
"Some of the changes we've made have been called crazy by other financial institutions," said Rudy Pereira, President/CEO. "And maybe they are! However, as an organization, we're driven by our core values - and one of those values is to do the right thing. It's the way we want to do business, and we have the opportunity to do the right thing for our Members with this savings rate increase."