 |
You can save your money in a lot of different places – but if you’re looking for a safe place that will give you a good return on your investment (whether you save a little or a lot) there are few places that are better than your credit union.
That’s because at MECU, you’re not just a customer, you’re an owner.
The Share Savings account is the key to credit union membership. By opening your Share Savings account and purchasing at least one share, you become a member and can use credit union services - even if you retire or leave City service. At MECU, it’s "once a member… always a member." Since you’re actually buying shares in the credit union, the Share Savings is a dividend-bearing account. As such, the dividend is declared at the end of a dividend period, which is monthly.
Dividends on Share Savings accounts are declared by the Board of Directors. Remember - there is no limit to the amount of money that may be deposited into a MECU Savings or Investment Account.
If you need a loan, you may want to consider borrowing against your Share Savings (or a MECU Certificate of Deposit or Money Market Account) with a low interest rate Share Collateral loan. No co-makers are required and the amount you can borrow is determined by the amount in your Share Savings account.
Other MECU interest-bearing savings programs are designed to serve your special needs. For example:
Budget Savings and Recurring Transfers
Financial planners often advise the public that when you are paying your bills...pay yourself first. This practice will insure that you are developing a regular savings habit.
MECU has long endorsed the benefits of regular savings. And to make the habit of savings easier and more beneficial than ever before, MECU now offers two great savings tools…recurring transfers and budget savings.
Recurring transfers. This free service will allow you to set up automatic transfers from one of your MECU accounts to another. You select the accounts, the amount of the transfer and the date(s) when the transfer will occur. Then each month the transfers will automatically take place. Now that’s easy and convenient. To sign up for this free service, just go to the “transfer” page in online banking. Signing up is quick and easy and there’s a FAQ link right on that page if you have any questions.
Budget savings can make your automatic savings plan even more beneficial. This account at MECU will be your own savings nest egg... a special and separate account into which the automatic transfers will flow. This way your savings nest egg will not be mixed with your dollars in other MECU accounts so you can more easily track your savings as they grow. And the Budget Savings Account earns MECU’s outstanding base share rate. To open your budget savings online, just click on Apply Now.
So...sign up today for these two great tools to assist you in reaching your savings goals. In the years ahead you will be thankful that you started today.
Certificates of Deposits (CDs)
Regular Certificate of Deposit
Certificates of Deposit offer a fixed interest rate that provides stability when interest rates fluctuate in the financial marketplace. CDs earn a higher rate than statement savings. If you have difficulty building savings, a certificate of deposit will help you with your long-term investment goals because you won’t be dipping into your savings. MECU offers certificates with a variety of terms. The minimum investment in a CD is $500. The interest rate and other details pertaining to your Certificate of Deposit are explained on the application and disclosures you receive when you establish your CD.
Bump-Up Certificate of Deposit
A Bump-Up Certificate of Deposit allows for the interest rate to be "bumped" or increased sometime during the term of the CD.
For 24 & 36 month Bump-Up Certificate of Deposit accounts you have the option to make one interest rate adjustment during the term of the account. For 48 and 60 month Bump-Up Certificate of Deposit accounts you have the option to make two interest rate adjustments during the term of the account. The new interest rate will be paid for the remainder of the term at the rate then in effect for new Bump-Up Certificate accounts on the date the credit union receives the completed request.
If you already have a MECU Bump-Up Certificate of Deposit and would like to request an interest rate adjustment now, click here.
SuperFlex Certificate of Deposit
For SuperFlex Certificate of Deposit accounts, you are permitted to make deposits into the account during the term. You may withdraw part of the funds from the account prior to maturity without paying a penalty; the balance remaining must be at least $1,000.00. A withdrawal may not take place until 7 business days from the initial deposit to the account. Only one withdrawal without paying a penalty will be permitted during the term of the account.
Making regular deposits into your SuperFlex CD just became easier. With MECU's new online banking function known as "Recurring Transfer", you can automatically transfer money from your MECU accounts into your SuperFlex CD. Just pick a date(s) and the dollar amount to be transferred and it will occur automatically. Now that's an easy way to maximize your CD investment. So go to "Transfer" page to sign up for "Recurring Transfer" and start building on your savings today.
Auto-Build Certificate of Deposit
An Auto-Build Certificate of Deposit makes it easier than ever to open a CD because you can open it with a minimum deposit of just $25.00.
You may also make unlimited deposits to the CD during the CD term. Once your average daily balance reaches $500.01, your interest rate will increase. Once your average daily balance reaches $5,000.00, your rate will increase again.
The Auto-Build CD product is available in twelve-month or twenty-four month terms.
To check out the great rates available on MECU's family of CD's, click below:
Open your MECU Certificate of Deposit right now -- online.
It's never been more convenient to take advantage of MECU's outstanding rates. All that's required is your MECU online banking PIN. Here's how:
-
Click here to check out MECU's great rates and decide which certificate is right for you.
-
Log on to online banking and select "Account Services".
If you don't yet have your online banking PIN, click here to get your PIN online. It's simple, it's free, and it only takes a few moments. Then log on to open a certificate of deposit, and for all of MECU's great online account services.
You can save for the holiday expenses through the convenience of a Christmas Savings account. Grow your holiday savings with MECU's great rates throughout the year; then, in early November, your Holiday savings, plus interest, will be automatically transferred to your Base Share Savings account -- just in time for Holiday shopping! You can open your MECU Christmas Savings account at any MECU branch, by mail, or -- easiest of all -- online at your convenience. Just log on to MECU online banking. If you don't already have a MECU online PIN, click here to enroll and get started.
Recurring Transfer can also be used with your Christmas savings account. By signing up online for "Recurring Transfer", you can have money automatically transferred from a MECU account into your Christmas savings. You select the dollar amount and the frequency ... weekly, bi-weekly, or monthly. With Recurring Transfer, you will have all the money you need for the holidays. So as soon as you open your Christmas savings, go to the "Transfer" page and set up recurring transfer. When the holidays arrive, you will be glad you did.
The Education IRA, recently renamed the Coverdell Education Savings Account, is a type of tax-advantaged savings account created by the Taxpayer Relief Act of 1997. This IRA's sole purpose is to help you pay for your child's education expenses such as: tuition, fees, books, supplies, equipment, and, in some cases, room and board and computers.
Unlike traditional IRAs, your contributions to an Education IRA are never tax-deductible. However, an Education IRA offers you the potential for tax-free withdrawals -- including earnings.
The total contributions each year to each child's Education IRA cannot exceed $2,000 for 2002 and later years. If you are eligible, you can contribute the full amount for each child. For example, if you have three children and each has his or her own Education IRA, you can contribute $6,000 for 2002 ($2,000 to each IRA).
Individual Retirement Accounts(IRAs)
You can save money on taxes and prepare for a more secure retirement with an Individual Retirement Account (IRA). There is no fee for establishing or maintaining your IRA or IRA CD at MECU. Because of the nature of an IRA, the interest you earn on it over the years is not taxed until you withdraw it. Since this is usually after you retire, it is likely you’ll pay less tax on your earnings than you would have during your working years.
IRA contributions may be tax deductible on your federal return, depending on your income. Consult your tax expert for information on how an IRA may be beneficial to you. For more information on how to open an IRA click here. Effective April 1, 2006, NCUA insured credit union retirement accounts such as Individual Retirement Accounts (IRAs) and Keough accounts are insured up to $250,000.
ROTH Individual Retirement Account
The Roth IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. Unlike traditional IRAs, your contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. Of course, you must conform to the plan provisions to get this tax-free advantage.
You are eligible if you earn compensation and your income is less than limits set by Congress. A single filer who has modified adjusted gross income (MAGI) up to $95,000 can make the full Roth IRA contributions for that year. Each spouse filing a joint federal income tax return showing a MAGI up to $150,000 can make the full Roth IRA contributions for that year. Some people with higher MAGI may be able to make smaller contributions.
For more information, please contact us or stop by your local branch , or check out our IRA Center.
PAY Savings is a plan designed especially for 10-month employees to help budget for the summer months when not receiving a regular paycheck. You save throughout the year, then during the summer months you receive the amount you've saved in four equal amounts. Payments begin two weeks after the last regular paycheck. Interest is included in the fourth disbursement.
Uniform Transfers to Minors Account (also known as a UTMA account)
A Uniform gift to Minors accounts (UTMA) is an account set up for the benefit of a minor child. The UTMA is a convenient way to save for a minor while limiting the child’s access to the funds. Basically the UTMA allows a parent or other interested adult to make an “irrevocable gift” to the child, which is the deposit into the UTMA account. By regulation, the funds in the account as well as any interest earned on the account belong to the minor.
-
The social security account number of the minor is therefore by regulation reported to the IRS.
-
The account is actually in the name of the minor who must be eligible for MECU membership. The account statement will reflect the minor’s name.
The UTMA is established by a custodian who is the only person permitted to transact business on the account even after the child reaches 21 years of age. The custodian has possession and control of the account for the minor and is entitled to make additional deposits to the account. The custodian can also make withdrawals from the account at any time but only for the benefit of the minor.
-
Any person 18 years of age or older can be a custodian even if they are not a member of MECU or eligible for MECU membership.
-
At any time, a successor custodian can be named by the custodian. This successor custodian would control the funds in the account upon the resignation or death of the current custodian.
-
Tax advice from the IRS for a professional tax consultant should be obtained by the custodian prior to opening this account.
To get started in opening an UTMA account, click here to obtain the account opening form and directions.
How to open a MECU Savings Account
You may open accounts in person or by mail. You can download an application from our web site or call our Telephone Service Center to have one mailed to you. You must be a MECU member to apply for other credit union services.
For specific details about each savings account, refer to the MECU disclosures made pursuant to the Truth in Savings Act, Expedited Funds Availability Act and Electronic Funds Transfers. This information will be given to you when you open a savings account and is available at any time upon request.
How to Access and Get Information on Your Accounts
There are many convenient ways to make deposits to or withdrawals from your savings accounts.
-
24/7 access by Telephone Teller, through online banking on our web site, automatic deposits through payroll deduction or automatic clearing house (ACH) transfer, by mail
-
Personal service by calling our Telephone Service Center or visiting one of our branch offices
Savings Protection Plan Coverage for Primary Members
As a primary member, your Share Savings may be insured in the event of your death up to a maximum of $2,000. This is no additional cost to you, if you joined MECU prior to August 1, 1990.
The amount of coverage payable to your beneficiary depends upon your account balance and the date and age at which you made the deposits.
Effective December 31, 1990, in order to be eligible for coverage under the Life Savings Protection Plan, a member must have the sum of at least $1,000 in his/her Share Savings account at all times.
Contact MECU for details on the plan benefits.
All MECU savings accounts pay you a high return on your investment.
Your savings federally insured to at least $100,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. Additional coverage provided through Excess Share Insurance Corporation to a combined total of at least $175,000.
 |
 |
