Did members have to approve the change from a state to federal charter?
Yes. On February 18, at a special in-person meeting, members voted overwhelmingly in favor of becoming a federally-charted credit union.
What is the difference between a state and federal chartered credit union?
A federal charter means the Credit Union is regulated by the National Credit Union Administration (NCUA). A state charter means the Credit Union is regulated by the Department of Financial Protection and Innovation (DFPI), which regulates all California state-chartered credit unions and other financial institutions for compliance with the laws and regulations of the state of California, as well as the appropriate rules and regulations of federal agencies.
Does this conversion affect federal deposit insurance?
No deposit insurance did not change. Accounts continue to be insured by the National Credit Union Share Insurance Fund (NCUSIF), as managed by our federal regulator, the National Credit Union Administration.
What are the financial impacts of the charter change?
We are confident that the income and growth opportunities associated with this change outweigh any additional costs.
Does this change who will be eligible for membership?
While there are changes that help broaden our field of membership, a member who could join before the change will be able to join now that we are a federally-charted credit union. Current members are not impacted by the change to eligibility – once a member, always a member!
Why did the Credit Union make this charter change?
By converting to a federal charter, we can serve more members, which allows us to offer competitive rates, reduce or eliminate fees where possible, and invest in new products, services, and technology to better serve our members.
When will the charter change happen?
We anticipate the full process of converting to a federal charter be complete on August 5, 2025.
How do members benefit?
Members benefit from this conversion in a number of ways. Through a federal charter, the Credit Union will pursue more growth opportunities outside of our traditional field of membership. This could result in added locations to conduct business and serve members who are located outside the areas we currently serve. Also, growth for the Credit Union means more resources available to improve our members’ banking experience.
What will happen to Arrowhead’s Inland Empire roots?
We remain committed to serving the Inland Empire and the surrounding areas, including maintaining our primary workforce and headquarters here. Members will not see a change in our branch structure as a result of this conversion, nor a change in service.
How will the change impact current members?
Members are co-operative owners of a credit union. To establish their equal ownership stake under a federal charter, a share and minimum investment is needed. Every Arrowhead member will be required to have an Arrowhead Savings account with $1 deposit and minimum balance to maintain ownership effective August 5.
For any members who do not have an Arrowhead Savings, we'll automatically open and deposit the minimum balance for you on August 5. If you’d like to get started sooner, you can add an Arrowhead Savings account anytime in digital banking.
Can I open an Arrowhead Savings account and establish my ownership stake in the Credit Union prior to August 5?
Yes! We welcome you to add your savings account in digital banking. If you need assistance, feel free to call, visit a branch, send a secure message, or chat online with us during business hours, and we will be happy to open one for you.
If I only have a loan with Arrowhead, how can I add an Arrowhead Savings account?
1. Set up an external ACH transfer account in digital banking.
2. Add an Arrowhead Savings account.
3. Fund $1 from your external ACH transfer account.
4. Set up auto-pay for your loan from your Arrowhead Savings account and get a .25% off your APR1!
For any members who do not have an Arrowhead Savings, we'll automatically open and deposit the minimum balance for you on August 5. If you’d like to get started sooner, you can add an Arrowhead Savings account anytime in digital banking.
If I have more than one Arrowhead Savings account, does the minimum balance requirement apply to all of the Arrowhead Savings accounts?
Yes, the minimum balance requirement for all Arrowhead Savings accounts is $1. However, you only need one Arrowhead Savings account with a $1 minimum balance per membership account.
Will there be a fee to add the member share to my membership?
No, starting April 1, 2025, we reduced the minimum balance requirement on Arrowhead Savings to $1 and removed the monthly maintenance fee.
Can I use this Arrowhead Savings account like a regular savings account?
Yes, for most members, an Arrowhead Savings account with no monthly maintenance fee will now be a benefit of a membership. In fact, we encourage you to use this account to help reach your savings goals.
If I don’t use my Arrowhead Savings account, will it close?
No, your Arrowhead Savings account will not close if your other shares and/or loans remain active. However, if there hasn’t been activity in 12 months, a $2 inactivity fee will be charged.
If I close my membership, will I get the $1 deposit back?
Yes, if you decide to close your membership in the future, the $1 minimum deposit will be returned to you regardless of how it was funded.
1 APR=Annual Percentage Rate. Automatic payment must be made from an Arrowhead account. Adding automatic payments to an existing auto loan reduces the loan interest rate by .25% APR. Removing automatic payments will cause the auto loan interest rate to revert to its original rate. Your required monthly payment amount and payment due date will not change based on the reduced rate but the maturity date of your loan will change.
