In a move that runs counter to the upward trend of interest rates, 1st Cooperative Federal Credit Union will reduce interest rates on loans for new automobiles effective July 1. Meanwhile, dividend rates on certificates will increase, a move sure to be welcomed by savers.
“Members are looking more closely at new vehicles as the cost of used vehicles has increased,” said Ashley Beach Reid, COO of the credit union. “We’re trying to make those purchases easier, even though it goes against the tide of most financial institutions.”
Rates for new-vehicle loans will drop to as low as 3.29% annual percentage rate (APR). There’s a range of rates based on a member’s credit qualifications, but even the highest rate has been lowered — to 14.79% APR.
More good news comes with higher dividend rates for savings certificates. The 12-month certificate will earn 0.85% annual percentage yield (APY). The rate for 24-month certificates will increase to 1.05% APY.
The credit union’s board of directors approved the rate changes at its last meeting.
While members need to call the credit union (803-796-0234) to purchase savings certificates, they can begin the loan application online at www.1stCooperative.com/resources.
Membership in the credit union is open to electric cooperative employees, trustees, and families including spouse, children, grandchildren, parents, grandparents and siblings. To join, click here.