FEDERAL RESERVE RATE DECREASE

On Nov. 7, the Federal Reserve made the decision to decrease the federal funds rate by 0.25%.

The federal funds rate is important because it affects many other rates, including the prime rate, which determines the rates on variable-rate loans, such as credit cards, lines of credit and other products.

What does this mean for Members?

You will see a rate change to the products listed below. Please refer to your Agreement and Disclosure Statement for specific information on how your loan or credit card is affected.

When will Members see changes to rates?

Fed Rate Decrease Decision — Nov. 7, 2024 (0.25%)

Rate change for new loans begins Nov. 8, 2024:

  • Home Equity Line of Credit (HELOC)

Rate change for new loans/credit cards begins Nov. 13, 2024:

  • Inspire Mastercard®.
  • Rewards Mastercard®.
  • School Employee Mastercard® (School Employees).
  • Special Curriculum Loan (School Employees).
  • Higher Education Loan (School Employees).

Rate change for existing loans/credit cards begins Dec. 1, 2024:

  • Inspire Mastercard® (Based on your statement cycle).
  • Rewards Mastercard® (Based on your statement cycle).
  • School Employee Mastercard® (School Employees) (Based on your statement cycle).
  • Special Curriculum Loan (School Employees).
  • Higher Education Loan (School Employees).

Rate change for existing loans begins Dec. 21, 2024:

  • Home Equity Line of Credit (HELOC).

Rate change for existing loans begins Jan. 1, 2025:

  • Line of Credit (Legacy Schools Financial Members).
  • Signature Line of Credit (Legacy Schools Financial Members).
  • Student Line of Credit (Legacy Schools Financial Members).

Fed Rate Decrease Decision — Sept. 18, 2024 (0.50%)

Rate change for new loans begins Sept. 20, 2024:

  • Home Equity Line of Credit (HELOC)

Rate change for new loans/credit cards begins Sept. 25, 2024:

  • Inspire Mastercard®.
  • Rewards Mastercard®.
  • School Employee Mastercard® (School Employees).
  • Special Curriculum Loan (School Employees).
  • Higher Education Loan (School Employees).

Rate change for existing loans/credit cards begins Oct. 1, 2024:

  • Inspire Mastercard® (Based on your statement cycle).
  • Rewards Mastercard® (Based on your statement cycle).
  • School Employee Mastercard® (School Employees) (Based on your statement cycle).
  • Special Curriculum Loan (School Employees).
  • Higher Education Loan (School Employees).

Rate change for existing loans begins Oct. 21, 2024:

  • Home Equity Line of Credit (HELOC).

Rate change for existing loans begins Nov. 1, 2024:

  • Line of Credit (Legacy Schools Financial Members).
  • Signature Line of Credit (Legacy Schools Financial Members).
  • Student Line of Credit (Legacy Schools Financial Members).

Is the federal funds rate expected to fluctuate again this year?

It depends on how the economy is performing. The Federal Open Market Committee (FOMC) will meet multiple times this year to assess interest rates and the current environment.

Does this mean rates on deposit products will also be increasing?

We always strive to maintain very competitive rates to help Members save. The federal funds rate is just one factor we consider when determining if we will increase dividend rates. You can find our current rates on our website.