Always cheaper ...friendly staff with good financial advice..no fuss banking... If you like electronic banking this will suit you if you want to go to the counter for each transaction it won't.....plus they always pass on reductions in loan rates. Credit unions are for their members not the shareholders actually e members are the shareholders.
The interest rate and the staff
Go to a bank. More competitive and handy.
I've been with SGE Credit Union for 19 years. I have both a home loan and term deposit with them. In the last 2 they have been sending out letters whenever the RBA has announced a rate cut stating the new rate, but not what the reduction was. The reason they did this (after a bit of research) is they passed on a rate reduction which was lower than the big banks. There interest home loan interest rate is now as high as that of a standard bank. They have also in the last couple of years drastically increased there fees (you get charged after a certain amount of transactions including bpay, transfers, automated payments, eftpos, etc. Also, they have been cutting there investment rates at or beyond the RBA rate, so term deposits interest decreases drastically at turn over.
I rang and spoke to management over what they were doing to my credit union. He said the cost of getting money elsewhere to pay for loans has increased, hence the increases, then mentioned most of the money for loans comes from members investments. He mentioned they were more personal as there were only 12 people in there call centre and Westpac has 2000. I mentioned the local westpac branch has 3 or 4 people. I mentioned banks have higher infrastructure costs, yet are more competitive. He said that they also have infrastructure costs they have to pay for. 1 branch in Melbourne. He then mentioned you can use a post office to deposit cheques. 10 day clearance time. He said that other credit unions were going out of business or merging to stay alive in such a tough environment and SGE was going strong. He then went on to explain that SGE would be merging with a smaller credit union later in the year. I asked him why I should stay with SGE after the changes. He told me if I didn't like it, go else where. I did, and so should you.
Many years ago they were great. Friendly staff. Very competitive. Now management has run them into the ground.
High fees. High loan interest rates. Low investment rates. Apathetic management.
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