Rates

Savings, Checking and Share Certificates

What is the difference between APR and APY?

APR (Annual Percentage Rate) represents the annual cost of borrowing money and is commonly used for loans and credit products. APY (Annual Percentage Yield) represents the annual amount you can earn on a deposit account. In general, APR applies to borrowing, while APY applies to earning dividends on your deposits.

Are Share Certificates the same as CDs?

Yes, Share certificates are the credit union version of the certificate of deposit(CD). You deposit money for a set term and earn a guaranteed divident rate. Educators offers share certificates from 91 days to 5 years, plus special terms for both regular and IRA accounts.

How do Share Certificates work?

Open a share certificate with a minimum deposit of $500 and choose your term. Your dividend rate is locked in for that term, and you’ll earn dividends until the certificate matures. Some terms, including the 275-day and 30-month certificates, let you add money after opening. A penalty may apply if you withdraw funds before the certificate matures.

How often do dividends get paid?

Dividend payments depend on the type of account and the dividend schedule. Dividends may be calculated daily and paid monthly, quarterly. Refer to current account disclosures for the specific dividend payment frequency.

Do dividend rates change often?

Educators Credit Union reviews deposit rates regularly and shows the effective date with each rate table. Share certificate rates are locked in when you open the certificate. Rates on savings, checking, and money market accounts may change after your account is opened.

Are there any fees for having the account?

Account fees vary depending on the type of account. Some savings and money market accounts may have minimum balance requirements, transaction fees or other charges. Review the account’s fee schedule and disclosures for a complete list of applicable fees.

Is there a the difference between a savings account and a money market account?

Both savings accounts and money market accounts allow you to set aside money while earning dividends. Savings accounts are generally designed for convenient access to your funds, while money market accounts may offer a higher dividend rate but have minimum balance requirements. Balance requirements, transaction limits, dividend rates and fees can vary by account, so it’s important to review the terms of each account when deciding which option is right for you.

Loan Rates

What is the difference between fixed-rate and variable-rate loans?

A fixed-rate loan has an interest rate that generally stays the same for the life of the loan, which can make monthly payments more predictable. A variable-rate loan has an interest rate that can change over time based on changes in a specified market changes or other factors described in the loan agreement. Variable rates may increase or decrease during the loan term.

What’s the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum at a fixed rate with predictable monthly payments, which makes it a good fit for one-time expenses like a renovation. A home equity line of credit (HELOC) works like a credit card secured by your home. You borrow as needed up to your limit, and the variable rate adjusts quarterly based on the Prime Rate. Eligible members can get an introductory rate on a new Educators HELOC for the first 3 months.

Does my credit score affect the loan rate I am eligible for?

Your credit score and credit history may affect the interest rate and loan terms you qualify for. Creditworthiness along with factors such as income, debt, loan amount, loan term, collateral and other eligibility requirements can affect loan pricing. A stronger credit profile may help you qualify for lower rates or more flexible terms.

Can I make extra payments on my loan?

Borrowers can make additional payments toward the principal balance of a loan. Extra payments can reduce the amount of interest paid over the life of the loan and may help you pay off the loan sooner. However, payment rules may vary by loan type, so review your loan agreement before making additional payments.

How much can I borrow?

The amount you can borrow depends on the type of loan you’re applying for and your individual financial circumstances. Factors such as your income, credit history, existing debt, loan type and down payment, can all play a role in determining your loan amount. Loan minimums and maximums can also vary by product, so the amount you may qualify for will depend on the specific loan and your circumstances.

What type of down payment do I need?

The required down payment depends on the type of loan, the purchase price and your financial profile. Some loans may require a down payment, while others may offer lower- or even no-down-payment options for qualified borrowers. A larger down payment can reduce the amount you need to borrow and may affect your loan terms or monthly payment.