According to this LV-RJ story, the Nevada Federal Credit Union is trying to reduce its’ deposits.
“We don’t have any loan demand right now,” Beal said.
The credit union is investing in short-term Treasurys and earns about one-quarter of 1 percent on those government securities on average, but it was paying 0.4 percent to customers with savings.
Starting Monday, the credit union has cut the variable interest rates on deposits held by members that only save money to zero.
“We’re losing money, and they are not making money,” Beal said.
So the credit union will pay these savers a $25 bonus for withdrawing amounts between $25,000 and $49,999. The bonus jumps to $50 for amounts up to $74,999 and goes to $75 for larger sums.
The credit union staff, he said, will help the savers find another place to park their money.
For what it’s worth, I would also be happy to help the savers find another place, and at a much higher rate.