How Sunward Sets Rates

Sunward strives to price our products in a way that both benefits members and keeps their money safe. Robert Chavez, Sunward’s President/CEO, explains three factors that determine the pricing of deposits and loans at the Credit Union.

NATIONAL MONETARY POLICIES

“There are a number of different tactics and strategies that the government uses to drive economic and monetary activity,” Chavez says. “Government mandates and regulations, as well as Treasury Security rates, all affect pricing at Sunward.”

Sunward closely watches the interest rates set by the Federal Reserve, as well as other federally maintained rates. Changes in federal rates could indicate a need for Sunward to adjust rates accordingly.

THE COMPETITIVE ENVIRONMENT

Competitors’ rates aren’t always as good as they look. Sunward is proud to offer rates and products that are straightforward and easy to understand. “Many institutions still offer teaser rates,” Chavez says, “even though the government has had to curb some of the more deceptive pricing tactics”

On a weekly basis, Sunward considers the competitive rate environment to help guide decisions about whether to change rates. Sunward’s rates are among the best in the Albuquerque market.

Sunward's FINANCIAL NEEDS

Sunward strives to balance loan and deposit rates. Chavez says, “We could offer lower rates on the loans we make, but that would mean we’d have to pay lower dividend rates on the deposit products we offer. Conversely, we could offer higher rates on deposits, but that would mean we’d have to charge higher loan rates.”

Income from interest paid by members on loans must be balanced against interest paid to members for deposits. Sunward reviews the spread between these amounts regularly to help make decisions about rate changes.

“If you have both loans and deposits at Sunward, you are getting the best value from your member-owned credit union,” Chavez says.