The Low Down on Low-Income Credit Unions
Originally posted on CUInsight.com
Liquidity Crisis has become a term all too familiar over the last several months. The increase in demand and decrease is liquidity supply is leaving some credit unions feeling a bit panicked. While it’s every credit union’s goal to maintain and grow their deposits and enhance their revenue, sometimes it is easier said than done when it comes to meeting consumer demand. There are typical, more traditional ways to increase deposit growth, such as reward checking and checking account referrals, but credit unions have a list of non-traditional options to consider as well, especially if they qualify for a low-income designation (LID).
To be a low-income designated credit union (LICU), at least 50.01% of the credit union’s members must qualify as “low-income members,” which can vary from city to city and state to state. This designation, during times of decreased liquidity, can help give credit unions a helping hand as they give access to secondary capital, are exempt from the member business lending cap, and are eligible for grants and low-interest loans, to name a few.
So, what are some additional ways credit unions can increase deposits with an LID you ask?
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