Savings Accounts
Also known as “share accounts”, these accounts through regular weekly, bi-monthly, or monthly deposits will help your savings – and Northeast – grow. Dividends are paid on a quarterly basis to accounts with $100 or more. Our easy direct deposit service allows your employer to send a portion of your paycheck directly to your savings account. Your account is federally insured up to $100,000 by the National Credit Union Share Insurance Fund.

Certificates of Deposit
Certificates of Deposit, or CDs for short, offer a higher rate of interest than regular savings accounts. They are investments in the credit union that help Northeast to provide affordable loans to its members.

NO FEES OR SERVICE CHARGES

Loans
Northeast offers affordable loans to its members with savings accounts of $100 or more. These loans are vital to the individuals and communities that they live and work in (see Member Stories).

All rates are subject to change.

Your savings are federally insured up to $100,000 by NCUA, a U.S. Government Agency.

“Fresh Start” Loans
“Fresh Start” loans demonstrate Northeast Community FCU’s commitment to its low-income membership. “Fresh Start” loans are share-secured loans that enable the borrower to repair his/her credit and establish a regular pattern of savings. The amount borrowed is deposited and frozen in the member’s account for the term of the loan. A member makes regular monthly payments (principal +interest) to the credit union to pay off the loan. When the loan is paid off, the member will have the entire amount of the loan plus interest earned on shares in his/her account. If the loan is paid off successfully, the credit union will report this information to the credit bureau.

This loan helps our members in two ways:
1) It is a way for members to begin to establish or repair their credit history. By successfully paying off a share-secured loan, members will have a positive track record with the credit union and a positive report on their credit history.
2) It is a type of “forced savings plan” for members who want to save money for a particular purpose but have had difficulty maintaining a program of regular savings. Some members may find it easier to reach their savings goal if they know that they are legally obligated to make regular payments to the credit union, and that the payments they make are accumulating in their account as savings.

• Interest Rate: 7.50%
• Amount: $300 minimum - $3,000 maximum
• Term: 6 months-24 months

Penalties:
- 1 missed payment: amount due will be transferred from savings to the loan; borrower will be notified
- 2 missed payments: balance of loan will be paid off from savings and loan will be closed

To avoid delinquency in loan payments, credit union staff works with the member from the outset to determine a monthly payment schedule that is affordable to the member. Once the loan is made, the member must continue to make monthly payments for the term of the loan.

Banking
Northeast Community offers check cashing, money orders, direct deposit, and electronic funds transfer. These services are vital to all of our members and are encouraged to be used according to the “pay yourself first” principle. While some members may save more than others, these services are vital to our Tenderloin members who do not have access to financial services at a regular financial institution. Fringe “financial institutions” include the many check cashing, ATMs, and wire service stations that charge exorbitant fees and as a result drain individual’s as well as the community’s productive assets.

Services
At the heart of the Community Development Credit Union, (CDCU), philosophy is that the provision of financial services is just one important role among many that a CDCU plays. Programs like “Fresh Start” loans and payday check cashing demonstrate Northeast’s commitment to its low-income membership. While these financial services are important, Northeast strives to serve its community not only as a Financial Institution, but also as a Neighbourhood Institution and a Lending Institution.

As a Neighbourhood Institution, Northeast has shown continued interest in community building through branch expansion, new programs, and partnerships with other community organizations (see history and IDA program). As a Learning Institution, Northeast educates its members and community through its quarterly newsletter, budget counselling, and targeted counselling. Our Individual Development Accounts (IDAs) incorporate a 12 hour financial literacy workshop, first-time homeownership workshop, and a small business workshop into the savings program.