Membership, Made Easier!
Thursday, July 28th, 2011
We here at Salal think everyone should have the opportunity to experience the benefits of belonging to a credit union. But we’ve been hearing that the $50 share requirement is just too much of a barrier for some folks who would otherwise be happy to join, especially when other credit unions require less. We listened, we heard, and we’re responding: we’re truly opening our doors to “anyone who lives, works or worships in Washington State” by eliminating the $50 share requirement.
Beginning August 1, 2011, Salal “members” will be defined as those who have “an open and active account” with Salal Credit Union.
To have “an open and active account” and maintain eligibility for membership, a member must initiate some sort of action on any of his/her account(s) at least once every three years, or a member must initiate some sort of communication with us during that period.
Why are we changing our membership requirements?
- In today’s struggling economy, $50 was posing a real barrier to entry for some potential members.
- Members can take better advantage of our Refer a Friend program if the $50 share requirement is removed.
- The minimum balance requirement and low-balance fee on our Primary Savings accounts will also be eliminated, effective August 1, 2011.
How does this immediately affect me, the member?
- The $50 hold on your Primary Savings account will be removed on August 1, allowing you access to all your money.
- There will be no penalty for bringing your Primary Savings balance below $50.
We welcome any questions you may have about the change in membership requirements. Please feel free to visit your branch or call us at 800.562.5515 or 206.298.9394.
Does that mean members who joined before 8/1/2011 no longer actually own the credit union? I thought consumer cooperatives by law imply that members invest in forms of shares.
Dear Sarah or Andrea or Amy,
Thank you for an excellent question! I hope the following helps.
The definition of what constitutes “membership” is outlined in a credit union’s by-laws, which are approved by the Board of Directors. You are correct that members of credit unions are “members” by virtue of investing in the cooperative enterprise, and traditionally, many credit unions have required member investments be in the form of share deposits held by the credit union or a member fee. Per Salal’s by-laws, an active account you have with us is a form of investment in the CU. Any money you deposit with us or borrow from us (and repay, of course) helps the credit union profit and grow and enables us to return those profits to the cooperative in the form of better rates and fewer fees.
That’s a really great question; thank you for the opportunity to explain!
Shannon
I’m a bit paranoid-ish about this — is the next thing I’d hear is Salal CU converting itself into a community bank? I remember something very much like this happened with what used to be the Credit Union of the Pacific, which suddenly became Sound Community Bank, back in the 1990s. It was kind of bad enough that GHCU’s board decided to change the name to Salal CU without referring that to members, what other things might happen behind the closed doors….?
Unlike credit unions many community banks are in a pretty bad shape these days due to undercapitalization.
Thankyou Thankyou Thankyou! I for one was considering closing my account after over 30 years of membership because there was just so often when I needed that $50 that was unavailable!
Is it mandatory to remove the $50 limit? I would like for the $50 to remain in my savings account. It is an incentive to hopefully add to it in the future.
Donnie,
From a systems standpoint, we do need to remove the $50 block on all Primary Savings accounts, but may I suggest you consider moving that $50 to an Extra Savings? I find that if money is set aside in a special account (and you can name it that account, to make it even more special), I’m less likely to spend it and more likely to add to it. Then build your way up to the $500 for a Choice Certificate, and you’re really on your way!
Good luck and thank you for your question!
Shannon
Leanne,
So glad to know we won’t be losing you! We do understand that times are challenging right now, and we want to make it easier for our members to manage the economic storms. Thank you for your continued membership with Salal!
Shannon
Dear Sarah/Andrea/Amy (sorry, with whom am I speaking?)
Please rest assured that Salal is and will continue to be a credit union. We believe the cooperative model of credit unions is simply the best way to do business and serve our members! I can also assure you that Salal remains well-capitalized and will continue to make the kinds of careful decisions that keep our Credit Union on secure financial footing.
I hope this sets your mind at ease. Thank you for writing.
Shannon
why was there a transfer fee when YOU transferred the money from the savings account into checking?
Karin,
Thank you for your question. When members request Overdraft Protection, if there are insufficient funds in the checking account, we go to the account designated by the member to get the necessary funds: that could be a savings acct, a Money Market, even an EZ Line of Credit. This transfer has an associated fee of $3. To avoid that fee, we recommend that members set up account alerts. This will let you know if your account balance dips below an amount that you designate.
To set up account alerts:
If you have Online Banking with Salal, you can set up your account alerts here. First, log in to Online Banking. Next, on the left-hand side of your screen, choose “Notifications.” Designate which accounts, what balance should trigger the alert, and what email address you’d like the alert to go to. Be sure to click “submit” to make your alerts live.
If you don’t have Online Banking, please call us to get you set up! 800.562.5515 or 206.298.9394.
I hope this answers your question. If you have any additional concerns about this, please call 800.562.5515. Thank you!
Shannon