Members of All Valley Federal Credit Union, who work in the Santa Clarita Valley, will now have a closer place to do their banking. The credit union opened a new branch in the Super Walmart Center on Carl Boyer Drive, choosing the location to capitalize on its high visibility. Despite a still shaky economy, All Valley saw the timing as right to expand with a third location, said Kelly Cobos, vice president of marketing and business development. “We definitely took our time and did our homework,” Cobos said. “We have been actively growing in our membership, which allowed us the opportunity to open the branch.” All Valley, which also has branches in Lancaster and Palmdale, takes its membership from school teachers and postal workers. People who are not in those occupations can join, if they are a member of the La Mesa Junior High School PTA in Santa Clarita. As of September, the credit union had 12,113 members, compared to the 10,189 members as of March 2009. It is among the more than 7,000 credit unions in the U.S., serving some 91 million members, according to the Credit Union National Association. These financial institutions have benefitted from the public backlash against major U.S. banks for their role in the recent recession. Plus, most of the largest banks are raising their fees for certain banking services, introducing new fees for other services, which is another turnoff for consumers. Credit unions, Cobos said, offer better deals with no service fees and lower interest rates on personal and car loans. Data from the National Credit Union Association backs that up. As of March, the national average rate on a 60-month new car loan was 4.12 percent at a credit union, compared to 5.46 percent at a bank. Interest rates for CDs were higher at credit unions than banks, and the same is true for savings and checking accounts. Where banks still have the advantage is offering a lower interest rate for mortgages – 4.96 percent for a 30-year fixed loan, versus the national average of 5.02 at credit unions. Banks have another advantage with their plentiful locations and ATMs. Credit unions, however, have the Co-op Financial Services network to try and offer the same sort of convenience consumers get from banking at ATM locations. When customers are out of the city or out of the state, an All Valley member can use a Co-op machine to get quick cash or make a deposit, Cobos said. “There is no charge for that,” Cobos said. To lure new credit union members, All Valley touts more than low interest rates and no fees. Credit union staff is active in the community, particularly in schools – fitting as the institution started more than 50 years ago serving educational professionals. All Valley staffers have been invited into schools to talk to students about opening and managing an account and the importance of savings, Cobos said. “We believe if we establish relations and focus attention on assisting youth with financial literacy that is a way to give back and can grow the membership,” Cobos said. Credit Unions Market Free Checking Services Other credit unions in the Valley area have also seen growth in their membership, and they have the big banks to thank for that. Once banks began eliminating free checking accounts, Premier America Credit Union in Chatsworth and Matadors Community Credit Union in Northridge both saw an influx of people opening accounts at their branches. The free checking accounts are getting big play in Matadors’s marketing campaign, said Marnie Nemcoff, the vice president of marketing. “We have to take advantage where we can,” Nemcoff said. Unlike the move made by All Valley, Premier America and Matadors have no immediate plans to add more branches. Matadors has two locations in Northridge, while Premier America has seven in the Los Angeles area and two in Texas. Matadors is still careful with its spending, Nemcoff said. Although, she said, if the economy picks up and puts the institution in a good position, expansion is possible. “We are trying to control costs,” said John Merlo, president of Premier America. “We do not spend a lot of money on brick and mortar.” Giveaway Contest: Los Angeles Police Federal Credit Union The Los Angeles Police Federal Credit Union awarded $750 checks to three police department units in its first ever “Partners in Community” video contest. The winners, chosen by vote by credit union members were Patrol/Rifle Tactical Shotgun Unit, the LAPD Metropolitan Mounted Platoon, and the LAPD Bomb K9 Unit. Ten other units submitting videos won $100 Office Depot gift cards. The credit union sponsored the contest as a way for police units to receive funding at a time when the city is cutting back on the budget, said Manny Padilla, Jr., vice president of marketing. The quality and caliber of the videos took the credit union’s staff by surprise, as did the amount of campaigning the units did to get votes for their entries, Padilla said. “It was refreshing to see then engaged in the contest,” Padilla said. The Patrol Rifle/Tactical Shotgun Unit will use its check for a public address system at its shooting range. The Metropolitan Mounted Platoon needed the money for its “Mini-Mounties” underprivileged youth program. And the Bomb K9 Unit will use it award for supplies. The LAPFCU serves more than 40,000 members of the Los Angeles Police Department (and their families), and police departments for Los Angeles World Airports and the Port of Los Angeles. The four branches act like a private bank for the officers, Padilla said. They also offer members a greater sense of safety than they can find at a commercial bank, Padilla said. Padilla tells of one officer, who while in uniform at a bank, was in the same line as a man he had once arrested. “If we can help them do their finances better, it is one less thing to worry about when they are out on the streets protecting the city,” Padilla said. Staff Reporter Mark Madler can be reached at (818) 316-3126 or by e-mail at [email protected]. He splits his meager savings between a credit union and a commercial bank.
Membership Growth Spurs New Credit Union Branch
