The Lakota Federal Credit Union has announced new developments in our product and service offering that will benefit our 2500-plus members – as well as the community at large.
Effective today, the Credit Union will begin paying dividends to its members who hold Regular Share Accounts, which is comparable to earning interest on a savings account at a traditional bank. Any Credit Union member that has a minimum balance of $5.00 will begin accruing dividends daily at a rate of 0.20% APY on their balance. The dividends will be paid out monthly.
“Offering dividends is one way for us to express our gratitude to our members for their loyalty and continued support,” says Shayna Ferguson, Branch Manager of the Lakota Federal Credit Union. She explains that the rate is higher than most other financial institutions in the area.
We have also established our first ATM location, which is at Cowboy Corner in Interior, South Dakota. This is the first of several ATM locations that we have planned.
“Offering ATMs is all about creating a better financial experience for our members as well as everyone in the community,” says Ferguson. “Because we are a mission-based organization, our focus is on providing tools to help people build brighter financial futures.”
The Credit Union’s ATM will only charge a $2.00 fee, while other ATMs on the Reservation charge up to $5.00. With over half of our members reporting annual incomes less than $25,000, we generally trend toward lower fees and loan interest rates to support upward income mobility in one of the nation’s most economically distressed areas.
“We know that all of the small things add up. When you step back and really examine all of the fees people are paying these days, you realize an extra $10 or $20 in expenses a month can have a devastating impact on a family that is already struggling financially,” says Ferguson.
The Credit Union opened its doors in 2012 offering a basic savings account and loans up to $5,000. Since then, we have increased our loan limit to $50,000 and launched several new financial products, including short-term certificates of deposit and checking accounts.
“As a credit union, we don’t have customers like a traditional bank. Our members are actually part owners, and we value their point of view. As their financial needs grow and change, we are continually striving to develop new products and services to meet those needs,” says Ferguson.