AFTRA-SAG FCU Asks Members To Consider Withdrawing Funds
HOLLYWOOD, Calif. – AFTRA-SAG FCU here is asking higher-balance members to consider moving their deposits to other institutions.
The strategy is in response to the inflow of deposits and lagging loan demand, a scenario that has plagued numerous CUs across the country. But only a few have taken the steps AFTRA-SAG has, including Nevada FCU in Las Vegas.
In a letter to members, the credit union said, “Due to the unusual economic and market conditions, we are asking you, a select group of our large depositors, to move a portion of your funds to another institution. This request is a temporary one, so we would like to explain why we are making this request: The credit union is flooded with cash.”
The letter explained to members that the investment return it is earning on the excess deposits is quite low, also assured members that “there is no cause for alarm. Your individual savings and individual retirement accounts are safe and continue to be insured up to $250,000 by the National Credit Union Share Insurance Fund.”
The $200-million AFTRA SAG FCU has 35,000 members and primarily serves members in the entertainment industry, including the Screen Actors Guild.