Acu Phase 6

Front 1

What is a standard certificate of deposit?

Back 1

A certificate account that earns dividends based on the opening balance and the term. (length of time that it is opened for).

Front 2

Can you add to the balance of a standard certificate of deposit?

Back 2

No, after the initial deposit nothing can be added.

Front 3

Does ACU match the CD rates of other credit unions?

Back 3

No, but we do offer a better rate if the member is a full service member or has other relationships with ACU.

Front 4

How much is a Standard CD federally insured for?

Back 4

Up to $250000

Front 5

How are the dividends paid on a Standard CD?

Back 5

They can be added monthly (ie: compounded) or they can be added at maturity.

Front 6

Can a member pull out their earned dividends each month on a standard CD? Is there a penalty for this?

Back 6

Yes they can pull out their dividends earned monthly, and there is no penalty.

Front 7

What are the choices for terms on a Standard CD?

Back 7

Anywhere from 3 months to over 48 months.

Front 8

How can a member obtain their dividends earned from a standard CD?

Back 8

They can either be deposited into the member's checking or savings account, withdrawn at maturity or automatically mailed to the member in the form of a check.

Front 9

How are member's made aware of the impending maturity of their standard CD account?

Back 9

2 weeks before maturity, the member will get a letter in the mail so they can decide what they want to do with the money. If ACU does not recieve a response their money will automatically roll over into a new CD with the same term and the current rate.

Front 10

What is the penalty for early withdrawl of a standard CD?

Back 10

Dividends earned for the last 90 days or less. Never taken from the principle balance.

Front 11

What are the two penalty free ways to withdraw from standard CD accounts?

Back 11

1. Just withdraw monthly dividends
2. During the 10 days after maturity

Front 12

What is a Flex CD?

Back 12

A flexible certificate of deposit that earns interest based on the balance and term invested.

Front 13

What is the minimum balance for a Standard and Flex CD?

Back 13

$500

Front 14

What makes a Flex CD different from a Standard CD?

Back 14

1. Flex- you can add funds of at least $100 at a time (to a max of up to the original deposit amount, not to exceed $100,000).
2. You can bump your rate ONE time (this much be member initiated.

Front 15

What is a Traditional IRA?

Back 15

A tax favored plan to accumulate retirement funds.

Front 16

With an IRA, what does "contributions" mean?

Back 16

Deposit

Front 17

With an IRA, what does "distribution" mean?

Back 17

Withdrawl

Front 18

What is the max IRA contribution per year?

Back 18

$5000

Front 19

What is the IRA calander year?

Back 19

January - April (16 month)

Front 20

What is a spousal IRA?

Back 20

Allows stay-at-home spouse to make contributions as long as their spouse makes $5000 a year

Front 21

How old you have to be to make an additional $1000/ year contributions to an IRA?

Back 21

The member must be 50 years old or better.

Front 22

What age can you start to pull money from your IRA without penalty?

Back 22

You must be 59 1/2. At 70 1/2 distributions HAVE to start.

Front 23

What is the tax benefit for having an IRA?

Back 23

If you have reciepts from contributions they are tax deductable, and can possibly put the member in a lower tax bracket.

Front 24

What is a ROTH IRA?

Back 24

A tax favored plan to accumulate retirement funds.

Front 25

What is the difference between a traditional IRA and a ROTH IRA?

Back 25

on ROTH- Contributions are NOT tax deductable, but distributions are not taxed EVER, meaning dividends earned are tax free. At 70 1.2 years old the mandatory withdrawls are tax free - no matter what your tax bracket is.

Front 26

How can a member use the finds in their Roth IRA as a down payment?

Back 26

If they are a first time home-buyer they can use the funds for a down payment as long as the money is 5 years old.

Front 27

If the member reaches 70 1/2 years old but is still working are there mandatory withdrawls or contributions?

Back 27

No, as long as the member is still working there is not mandatory withrawls or contributions.

Front 28

What is an educational IRA?

Back 28

A tax favored plan to accumulate higher education funds.

Front 29

What is the maximum contribution per year for an educational IRA?

Back 29

Up to $2000 a year.

Front 30

(def)

chemical agents that destroy pathogens other than spores on inanimate objects

Back 30

disinfectants

Front 31

Is the $2000 maximum contribution to an educational IRA included in the $5000 max IRA contribution per year?

Back 31

No. This is seperate.

Front 32

What happens if the funds in an educational IRA are not used by the time the member is 30?

Back 32

They either have to start mandatory withdrawls or they can transfer their money to one of their children.

Front 33

Where can you find the Financial Representative Referall form? ACU website or NEO?

Back 33

Both places.

Front 34

Where can you find the FSCC Contact List? ACU website or NEO?

Back 34

Only on NEO

Front 35

What are the checking accounts that earn dividends?

Back 35

Golden 55
Choice Checking
Perk Checking

Front 36

How is interest earned on checking accounts?

Back 36

Average Daily Balance - all days added together then divded, then interest earned on that.

Front 37

How is interest earned on savings accounts?

Back 37

Daily Balance - interest is earned EVERY DAY

Front 38

What is the open ended loan program called?

Back 38

Personal Choice

Front 39

What is the VISA cycle date?

Back 39

The last day of the month.

Front 40

What is the most important piece of the Switch Kit?

Back 40

FOLLOW UP FOLLOW UP FOLLOW UP.