Products And Services Flashcards
Primary and Secondary Shares
A primary share is the first account opened when becoming a member, a savings account.
A member can open up to 9 secondary shares that are structured the same way.
Required documents- deposit member service request
What is a money market account and what is required to open one?
The only difference between money market and a regular primary share is a higher interest rate due to a higher minimum balance.
Minimum balance: $2,500
Required documents: deposit member service request
What is a share certificate and what are the requirements?
A CONTRACT where the member agrees to deposit a certain amount of money for a certain amount of time, and the credit union pays a higher dividend
Interest is paid quarterly
Minimum balance: $500
Required documents:
deposit member service request
share certificate disclosure
What are the penalties for a share certificate (CD)?
The early withdrawal penalty for a 6 or 12
month term… 30 days of interest
The early withdrawal penalty for 18, 24, or 36 month terms… 90 days of interest
What is a lucky savers share certificate?
Takes the benefits of a regular CD and gives members the chance to win monthly and quarterly prizes. Every $25 deposit gets you a chance to win (up to 10/month)
12 month term with a 1% APY
What are the requirements for a lucky savers account?
Requirements:
-18+
-one lucky savers per account
-one lucky savers per member
-employees not eligible for cash prizes
Required documents:
-deposit member service request
-share certificate disclosure
-lucky savers truth in savings
-lucky savers official rules
What are the penalties for a lucky savers account?
First time early withdrawal- $25
Second time = account closed
What is Christmas club?
A savings account where members can deposit throughout the year interest free. On October 1st, the money is transferred to their primary share
No penalties or minimums
Required documents:
-DMSR
What are IRAs and what are the 2 types?
Individual retirement account where you can save up to $7,000/year.
*They can not be under a joint membership
There are traditional IRAs and Roth IRAs
What is a traditional IRA?
Contributions reduce your taxes and you won’t owe income taxes until you withdraw the money in retirement
Distributions before 59 1/2 can face a 10% penalty with a tax bill.
At 72, you are required to make a distribution by April 1st or there is a 50% penalty.
What is a Roth IRA?
A non-tax deductible IRA where your money grows tax free and you can withdraw money tax free at retirement.
Money can be withdrawn at any time without penalty.
What is a Health Savings Account (HSA)?
A tax-advantaged account for people who are covered under high-deductible health plans to save for medical expenses that aren’t covered
Contribution limits:
$4,150/year for individuals
$8,300/year for families
*Any tax questions are to be referred to their tax advisor
What is rebate checking?
A high yield checking account that earns 3.25% on up to a daily balance of $20,000
NO minimum balance or deposit is needed but you need:
-deposit member service request (if no checking already)
Reg-E form (if no checking already)
-rebate checking disclosure
What are the qualifications for rebate checking?
-Members must complete 15 debit card transactions per month
-Have at least 1 direct deposit
-enroll in online banking
-enroll in e-statements
What are the rebate options and benefits?
-ACH deposit into account monthly
-ACH deposit into account in $25 increments
-$25 increment gift cards
Additional benefits:
-Refund of up to $5 monthly in ATM fees
-1,000 my points plus points for enrolling
*required documents are DMSR and
