The Federal Reserve Bank on Wednesday, Dec. 17, announced its decision to increase short-term interest rates – the first time since 2006. The Fed had kept short-term interest rates near zero for the last nine years as the economy tried to recover from the worst financial crisis and economic downturn since the Great Depression.
What the Fed’s action means for Dupaco deposit and loan rates
"In general, higher interest rates equals good news for savers and not as good news for borrowers—but Dupaco members need not worry," said Danielle Gratton, Dupaco's Chief Financial Officer.
Dupaco will continue to offer competitive rates on both deposits and loans, said Gratton.
Specifically, regarding deposits:
- Dupaco has paid above-market rates over the past nine years. As such, members will see no immediate change to Dupaco's deposit rates. We are proud of this long-time giveback to our loyal savers.
- The credit union will continue to offer the current certificate specials and above market rates on our savings and money market accounts.
- The credit union will continue to closely monitor and make rate adjustments—as necessary and fair—in response to economic and competitive factors.
Specifically, regarding loans:
- Dupaco will continue to offer competitive loan rates. There will be no immediate change in fixed loan rates.
- When the prime rate increases, members will see an increase in their variable loan rates (primarily credit cards and home equity lines), specifically when the margin increases over the stated floor rate.
Because Dupaco is a financial cooperative – owned by its members – decisions about rates, and product and service offerings are always made in the best interest of the overall membership.