Californias Self-Help FCU Gets Non-Member Deposit From Gateway Bank
OAKLAND, Calif. – Self-Help FCU said yesterday its People’s FCU unit has accepted a $250,000 non-member deposit from Gateway Bank in San Francisco.
The $250,000 deposit is in a so-called economic development term certificate, which allows investors to opt for a below-market certificate rate. By choosing a lower rate, investors help institutions, such as People’s, increase outreach to borrowers and bring ownership and economic opportunity to more low-wealth families.
In exchange for the deposit, the $300 million, minority-owned bank earns credit under the Community Reinvestment Act.
People’s is one of six community development credit unions that have been combined over the past three years to create the Self-Help FCU, a sister to North Carolina’s Self-Help CU.