Welcome to our Business Section! On one hand, the services of Our Family Social Credit Union can be described very simply. OFSCU provides two basic programs: share deposit accounts and loans. However, while the programs are basic, the services we provide are very comprehensive. Later in this section you will find an in-depth overview of each of those two programs.
We currently are looking at ways to provide some credit union forms for our members through this web site. In doing so, rest assured that confidentiality regarding member information will always be our number one concern. Look for more information on this topic in the months to come.
And now a word to all ofscu members:
We realize that our members are bombarded with advertisements on television, in the newspapers, and on the Internet by countless financial institutions hoping to get our members to do business with them. We won't be advertising on television or in newspapers or even on the Internet. So, this web site is our opportunity to share what we think you should know about OFSCU, as we believe there are many advantages of doing business with Our Family Social Credit Union. So, here are your
TOP TEN REASONS TO DO BUSINESS WITH OFSCU:
10) You pay twenty-five cents to join. That’s it! There is never another cost of membership for life.
9) There are NO loan-processing fees, NO hidden charges, and NO other typical costs to the member of any kind, ever!
8) There are NO late fees assessed for payments that arrive late, although interest continues to accrue until the next payment arrives.
7) Loans are often approved for 110% of the value of the vehicle being purchased, providing the borrower with funds to help with car taxes, licensing, and/or insurance.
6) All share accounts are insured by the NCUSIF (National Credit Union Share Insurance Fund), which is administered by the National Credit Union Administration, up to an individual account balance of $250,000.00.
5) All loans qualify, at no additional cost to the individual member, for our loan protection insurance program. (More details can be found in the Loans section below.)
4) All share accounts qualify, at no additional cost to the individual member, for our matching life savings program. (More details can be found in the Shares section below.)
3) One convenience for members is the option to make loan payments and/or share deposits using our ACH program. This allows money to be moved from a member’s bank account directly to OFSCU on either the first of each month or the fifteenth of each month. Many members have found this to be the perfect way to build up shares or make all loan payments on time without any cost for stamps or envelopes or the need to remember to mail your payments on time.
2) Unlike any other financial institution, you can e-mail or call the OFSCU Manager seven days a week, 52 weeks per year, and talk to an actual person. If you do need to leave a phone message, you will get a call back from the actual “person Manager” in the evening or on the weekend. Think about that!
1) We Are Family! Every penny of interest you pay on your loan with OFSCU goes back out to help pay credit union expenses or, better yet, goes to cousins (including yourself) in the form of quarterly dividends!
SHARES:
First of all, it is important for members to remember that OFSCU, like all other credit unions, is federally insured by NCUSIF, as explained earlier. That means that all share accounts are federally insured up to a total balance of $250,000.00 for each share account. It is good to know that your money will always be safe with OFSCU!
As of June 2010, Our Family Social Credit Union had a total share balance of $473,918.84, surpassing the $400,000.00 mark in total shares for the first time over ten years ago. Our shares balance total has grown steadily every single year since our beginning in 1950.
From 1950 through 1991, dividends on our share accounts accrued throughout the year, and then dividends were declared and applied to share accounts just once each year, at the closing of our books on December 31. For those first 41 years, the dividends were computed by hand (and by calculator) by the Manager once each year in December. In January 1991, the credit union purchased its first computer, and so thanks to computer technology, as of January 1, 1992, dividends now accrue monthly, dividends rates are declared quarterly by the Board of Directors, and dividends are then posted to all share accounts at the close of each quarter, an improved format that benefits our members.
The credit union carries a life savings (life insurance) plan on all share accounts. Under this program, share accounts are insured, on a matching basis, up to $3,000.00, under certain circumstances. The amount of matching coverage is based on the amount in the account at various ages and is applied to the account of the member when that member passes away. The beneficiary listed on that account then has access to the entire account balance, including the matching insurance money. Here are the four criteria for determining the matching amount of this life savings plan:
1) 100% of the account balance, up to a maximum of $3,000.00, is matched for all funds placed into the account prior to the age of 55.
2) 75% of the account balance, up to a maximum of $3,000.00, is matched for all funds placed into the account after the age of 55, but prior to the age of 60.
3) 50% of the account balance, up to a maximum of $3,000.00, is matched for all funds placed into the account after the age of 60, but prior to the age of 65.
4) 25% of the account balance, up to a maximum of $3,000.00, is matched for all funds placed into the account after the age of 65, but prior to the age of 70.
No insurance is available for any funds placed into the account after the age of 70. One more requirement is that the balance in the share account cannot fall below the highest level between those age ranges. If an account has $2,500.00 at age 55, but then has $500.00 withdrawn after age 55, then the new highest level on which the 100%-matching-portion of the payment would be made is $2,000.00.
For example, if a person has $2,500.00 in his or her share account at the time of death, all of which was deposited before age 55, then his or her beneficiary, as listed on our membership cards, receives the $2,500.00 in the share account, along with a matching $2,500.00 from the life savings (insurance) plan.
This makes it important that all members make sure their beneficiary listing is up-to-date. Members can request a form from the Manager to change beneficiaries at any time.
It is significant to note that this share insurance plan comes at no direct or additional cost to each member. The group rate is paid as an expense monthly by the credit union, so all member accounts automatically benefit from this program. If you have any questions not addressed here regarding this program, contact the Manager for more details.
Along with starting quarterly dividend declarations in 1992, the credit union at the same time also instituted a new tiered-rate structure for dividends. This format provides for the following tiered levels based on share balances:
Level I: $ 5.00 - $ 999.99
Level II: $1,000.00 - $2,999.99
Level III: $3,000.00 - $4,999.99
Level IV: $5,000.00 and over
While these levels regarding the share balances will remain the same, the specific dividend rates for each level will be set each quarter by the Board of Directors and will vary as net income for each quarter varies. In all cases, the Board of Directors will declare the highest rate possible for all shareholders, given the net income at the close of each quarter.
LOANS:
As stated in the History section, Our Family Social Credit Union has now loaned out well over $2,000,000.00 to our cousins since June 1950. The credit union also carries loan protection insurance on all loans, at no additional cost to members. Should the maker of a loan pass away before the loan is paid in full, the balance of the loan will be paid off by the insurance program. (The one exception is that no loan insurance is available on loans taken out by members after they reach the age of 70.) Both this loan insurance program and the share insurance program have proved very beneficial to OFSCU members.
Of Special Note: Other credit unions (and banks) may offer either share insurance or loan insurance programs, but most offer them only as additional, optional programs, paid for directly by those members who choose to pay for them. We know of no other institution that provides both share insurance and loan protection insurance at no additional cost to its members. This is just one (or two) of the many reasons to always consider saving money with and borrowing money from OFSCU first!
OFSCU has a four-tiered interest rate structure for loans as follows:
* Tier 1: is for any loan amount that is fully covered by shares. (This means a person with $2,000.00 in his or her share account could take out a loan for up to $2,000.00, with automatic approval, at the then-current Tier 1 loan rate for the life of the loan.)
* Tier 2: is for any new vehicle loan. (A new vehicle is defined as any vehicle that has not had any owner listed on the title other than the original car dealer.) A member may also borrow at the Tier 2 rate if he or she has a share account balance that is equal to 80% - 99% of the amount being borrowed and those shares are available to be pledged as collateral on the loan.
* Tier 3: is for used car loans. (This includes any loan for which a used car title is being offered as collateral, even if the loan is not being used to purchase that vehicle.) A member may also borrow at the Tier 3 loan rate if he or she has a share account balance that is equal to 60% - 79% of the amount being borrowed and those shares are available to be pledged as collateral on the loan.
* Tier 4: is for all other loans. (These are typically called unsecured loans or signature loans.) This applies to all loans for which the shares pledged are equal to less than 60% of the amount of the loan.
The Board of Directors reviews the loan rates for these four tiers on a regular basis to ensure the credit union maintains its primary goal: to provide reasonable and competitive rates for the benefit of members who need to borrow, while at the same time building adequate capital to provide competitive dividend rates to shareholders at the end of each dividend period. The rates for the four tiers of loans, as of July 1, 2010, are:
Tier 1: 4.99% Tier 2: 5.99%
Tier 3: 8.99% Tier 4: 10.99%
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