[ 0 ] October 6, 2014 |

International Credit Union Day has been celebrated the third Thursday of every October since 1948. The day was established to express the sincere appreciation credit unions have for the continued support of their members.  I speak for the entire IAA Credit Union Team in sending our appreciation to each of you!

Because IAA Credit Union is a not-for-profit cooperative, owned by our members for the benefit of our members, our greatest desire is to aggressively pursue our mission to “serve our members and advance their financial well-being.”  

One way to advance your financial well-being is to offer market leading returns on your deposits.   If you have the ability to leave $1000 or more in an account for six months or longer, you may want to consider the higher returns Certificates of Deposit (CD) can give you.

If you are missing out on higher returns because of the long-term commitment and reduced accessibility associated with CDs, you may want to consider “laddering”.   A ladder strategy is where you distribute deposits over a period of several years with the goal of having all your money deposited at the longest term (and therefore the highest rate), but in a way that part of it matures annually. Then you will reap the benefits of the longest-term rates while retaining the option to re-invest or withdraw the money in shorter-term intervals.

For example, to begin a three-year ladder strategy deposit equal amounts of money into 3-year, 2-year and 1-year CDs. From this point on, a CD will reach maturity every year, at which time you can re-invest at a 3-year term. After two years of this cycle, you will have all your deposits at a three-year rate, yet one-third will mature every year to be reinvested or withdrawn.

Regarding safety, CD deposits are insured by the National Credit Union Administration (NCUA) backed by the full faith of the US Government up to $250,000 per account.   IAA Credit Union has also purchased private excess share coverage for an additional $250,000 coverage per account.

Also, we would like to help you advance your financial well-being by offering the new IAA Credit Union Visa Rewards Card.  See our website for details.

Please visit our website or Facebook page to see the activities and specials we are offering as a thank-you to our members during Member Appreciation Month.

We sincerely appreciate your continued membership!

Thank you


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Category: CEO Corner

About the Author ()

Sean has been the Chief Executive Officer at the IAA Credit Union since June of 2005. He is a graduate of Illinois State University where he received a Bachelor of Science Degree in Agribusiness with a minor in Economics. Sean and his family live in Eureka, Illinois.

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