January 16, 2013

I Thought Only Banks Charged Fees

Comment January 16, 2013 by Triangle Credit Union

When considering any change in fee structure, careful thought is always given to ensure minimal impact on our membership as a whole. As a financial cooperative, we at Triangle Credit Union have a fiduciary responsibility to all of our members. Our aim is to always operate with integrity and transparency. So, a little explanation regarding our latest change in fee structure is warranted.

What is money then if it can take so many forms? Well, by definition, it’s something of value. But how do we asses value? The answer is no more complicated than by agreement.

At Triangle we have a few income sources, interest from loans, income from investments, and fees and charges to name the three main ones. Interest from loans is our primary income source and has been since we opened our doors in 1939 for the stated purpose of providing low-interest loans to the mill workers of the Nashua Gummed and Coated Paper Company. Back then, as we do now, members’ savings were pooled to create loans to other members. There’s a symbiotic relationship between the two and it’s a careful balance that must be maintained. When looking to increase our income to cover expenses, if we only considered increasing the interest rates on loans we’d run the risk of dissuading new members to join by applying. Without new members taking out loans we would not be able to offer competitive high yields on savings accounts.

In 2011, fee income accounted for 14% of our total income. Fee income gathered from services such as non-sufficient funds, returned checks, and account research, helped pay for services such as mobile banking, remote deposit, and Popmoney. We wish to continue to grow and innovate. We know our members want this too. It keeps us competitive, thus attracting new members, and allows us to continue to provide quality products and excellent service. When a member pays for a statement, treasurer’s draft, or a signature guarantee the Credit Union and membership as a whole benefit. For this, we are all truly grateful.

If you have any thoughts or comments please feel free to share them, and of course, please join us at next year’s annual meeting for more detailed accounting of our income and expenses.

Mark W - Executive Vice President


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