Frequently Asked Questions
Savings and Checking
There are several ways:
- Always keep an average daily balance of at least $100 in your savings and/or checking account.
- Use our ATM for your withdrawals. Only in-office withdrawals count towards your 4 per quarter — there’s never a charge to use one of our ATMs (or surcharge-free ATM network).
- Use payroll deduction to save money — not as a petty cash fund. If you find yourself consistently and completely withdrawing each payroll deduction — consider lowering your deduction to an amount that you can afford to leave in the account — and then let your balance grow to over $100.
- Payroll deduction is when you sign up to have a specific amount taken out of each paycheck. It is only a portion of your paycheck–not the entire check. Your payroll deduction is then distributed to one or more of your credit union accounts. For example, you might split your payroll deposit between loans, a Christmas club, your spouse’s or children’s accounts, vacation club, etc.
- Direct deposit is when your net paycheck is automatically deposited into your checking or savings account.
- You don’t have to choose one or the other. In fact, most checking account members have both Payroll Deduction and direct deposit. They specify how much they want distributed between their different accounts (payroll deduction) and then have the balance of their check directly deposited to their credit union checking account.
We use the “average daily balance” method for calculating dividends. It is calculated by adding the ending daily balance for each day of the dividend period and then dividing that sum by the number of days in that period.
The “dividend rate” is the basic rate paid on an annual basis — without the effect of compounding previously earned dividends. The Annual Percentage Yield (APY) includes the effects of compounding the dividends paid throughout the year (earning interest on interest). The greater the number of compounding periods — the higher the APY.
No – as long as you do not “close” the account before the end of the dividend period. At quarter-end, dividends will be paid right up to the day you withdrew the funds.
However, if you “close” the account before the dividends are paid — you will lose all accrued dividends.
Money Market Account
No. Our primary objective was to pay our “savers” a higher rate of interest. If we offered check writing privileges on this account, the check processing costs would significantly reduce the funds available for dividends – thereby defeating our objective. However, as shown in the next question, it is still very easy to access your credit union funds via check or ATM.
Absolutely – You can easily transfer funds from the money market account into your credit union checking account or regular savings account – and then withdraw those funds via personal checks, our ATM card, and/or our Debit card. To make transfers, and have instant access to the transferred funds, you may:
- Call any branch office; and/or;
- Use Access-24, our 24/7 audio response program;
- Use our internet home banking program.
No – In fact, if you don’t have your checking account with us, we recommend that you keep your regular share account open. Then if you need emergency access to funds, you can transfer money to savings and use our free ATM card to make a withdrawal at any ATM. Just remember to keep at least $100.00 in the Regular Share account to avoid low balance fees.
There are several ways you can make deposits:
- At any one of our branch offices;
- Via internal account transfers;
- Through payroll deduction;
In accordance with Federal Regulation D, we can only allow a total of 6 withdrawals/ transfers per month. If there is an emergency, we will make an exception, however, that transfer must be done during normal business hours as it requires a manual system override and the transaction will also incur a $5.00 excessive withdrawal fee.
Yes – You can set up automatic monthly payments through your mortgage holder and earn money market interest on those funds until they are withdrawn through the ACH. Just remember that the ACH withdrawal does count as 1 of your 6 monthly withdrawals/transfers.
Easy – simply call your branch office, and ask us to open a Money Market account and then tell us how much you would like to transfer into that account (must be at least $2000.00).
Aside from size, the biggest philosophical difference pertains to — who we serve. Non-profit credit unions only serve their members — who are also the owners of the credit union. Most banks, on the other hand, serve their stock holders — who are not always customers of that bank. So why is that important?
Members want “service” — at a fair price. So credit unions exist to provide the best possible service at the lowest possible price.
Stock-holders, on the other hands, want higher profits and share prices — which often puts them at odds with the desires of the bank’s customers — resulting in higher loan rates and fees coupled with lower savings rates.