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NEWSLETTER:
Volume
15, No. 1, October,
1998
REBATES
The Board of Directors is pleased to continue the quarterly rebate
for all real estate loans and older unsecured loans. This reduced
the effective secured loan rates to 6.5%, and the effective unsecured
loan rates to 12% for the fourth quarter of 1998.
DIVIDENDS
For the fourth quarter, the Board declared the dividend rate of 2.5%
on balances of less than $5,000, and 3% on balances of $5,000 and
greater.
Y2K
UPDATE
As we enter 1999, we’d like to acquaint our members with our
progress in modifying our software programs for the year 2000. We
have an IBM AS400 system with hardware and application software provided
by Peerless Systems of Dallas, Texas. We have installed the IBM upgrade
to make the AS400 software complaint, and the Peerless upgrade to
make the application software complaint. We are now in a stage of
intensive testing which has demonstrated some minor problems with
the upgrades; all have since been fixed. By year end 1998, we will
have performed all functions on the new software. During 1999, we
will test these functions on critical dates in the year 2000 and beyond.
Peerless has been extremely responsive to this issue, and its software
upgrade has been inspected and approved by the National Credit Union
Administration, our regulatory body. In August the Credit Union was
examined by the NCUA with a focus on this issue. Our efforts were
found to be acceptable to the agency. As a result, we expect to enter
the year 2000 with a system properly functioning, without any inconvenience
to our members.
GREAT
TIME TO BUY A CAR
If you are thinking about buying a car in 1999, February is an excellent
time to buy. With snow and ice on the ground, most people put off
the purchase to the spring. In addition, it is a short month with
only 28 days. Auto salesmen are generally paid commission only. They
have bills to pay in February too. This all adds up to dealers being
extremely willing to make auto deals in February. At the Credit Union
office we subscribe to the Black Book, which shows dealers costs and
suggested retail prices for cars, and is updated monthly. Credit Union
members can also get new car quotes from MVCP by calling (800) 345-0990.
They will give you up to two free quotes per month. This is a guaranteed
price from a dealer in the area. You can either buy from that dealer
or use your quote to negotiate with another dealer. MVCP is available
on the internet at http://www.mvcp.com/
Once you make a deal, the Credit Union has extremely attractive rates:
| With no down payment |
|
With 10% down |
| 36 month loan . . . 7.499% |
|
36 month loan . . . 6.999% |
| 36 month loan . . . 7.999% |
|
36 month loan . . . 7.499% |
| 36 month loan . . . 8.499% |
|
36 month loan . . . 7.999% |
USED
CARS
If you’re interested in a used car, we subscribe to the NADA
used car guide and can provide you with advice on value. Our used
car rate is 7.999% with loan terms from 24 to 48 months depending
on the age of the car.
Members can apply for pre-approval before they go car shopping, or
make a small down payment with the seller to hold the car, and then
apply for the loan with the Credit Union. We offer credit life insurance
on all installment loans up to $30,000 at no additional cost to the
borrower.
CD
RATES
We offer certificates of deposit at the following current rates and
yields for the following terms:
| 6 month certificate |
4.75% rate |
4.86% yield |
$2,500 minimum |
| 9 month certificate |
5.17% rate |
5.30% yield |
$2,500 minimum |
| 12 month certificate |
5.50% rate |
5.65% yield |
$2,500 minimum |
| 30 month certificate |
5.75% rate |
5.91% yield |
$1,000 minimum |
| 60 month certificate |
5.75% rate |
5.91% yield |
$1,000 minimum |
Current
certificate of deposit rates offered are subject to change in response
to market conditions.
YOUR
MONEY IS SAFE
All Credit Union deposits are insured by NCUA, a federal government
agency up to $100,000 per member. The NCUA fund is in sound health,
without a losing year in its 27 year history, and has an equity level
of 1.30% of insured savings.
24
HOURS / 7 DAYS PER WEEK SERVICE
Don't forget that the Credit Union has a 24 hour a day Voice Response
Unit. The system is only down for about 30 minutes a day during system
backup around 2:00 P.M., or in the rare event of repairs to the building
electrical system during weekends. To reach the system call (215)
592-3084.