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BOARD
Fall 2014
PRESIDENT’S CORNER
Dear Members of STCU,
I would like to share an article
I read on the benefits of
banking at a credit union.
1. Credit unions have superior service.
Credit unions are cooperatives. As such, the member is
first along with affordable services.
2. Credit unions offer lower interest rates.
Credit unions pass on their not-for-profit status to the member.
This means lower loan rates and higher savings rates.
3. Accounts have fewer strings attached.
Minimum balances are either nonexistent or better terms
than the bank option. Roughly 72% of credit unions had
no minimum balances requirements to avoid fees.
4. Fees are lower than at most banks.
On average, credit unions charge no fees and when they
do, it is usually less than their banking counterpart. This is
again due to the cooperative not-for-profit status.
5. Credit unions have shared ATMs and branches.
The credit union industry must compete with the larger
banking institutions that have ATM’s everywhere. Our
shared ATM networks and shared branching concepts
help us level the playing field.
The best choice for the consumer is to join a credit
union. We are thankful you are a member of STCU
Credit Union and strive each and every day to give the
best services at the most reasonable costs. Please tell a
friend about what they could be missing by not being
a member of STCU Credit Union!
Please have a safe and productive fall season and we
wish your family well.
Best regards,
Michael S. Ostrowski
Michael Ostrowski
[email protected]
Getting a Good Car
Deal This Month
Car and truck dealers are making room for new 2015 models on their
lots, and you know what that means: they’re eager to move out the
unsold 2014s. If you’re in the market for a new car, now could be a
great time to get a good price. To save when you buy your wheels,
follow these steps:
1. Line up your financing with us. These days our rates start at
2.75% APR for vehicles. When we prequalify you for a loan, you’ll not
only know your target price range but will also gain negotiating clout.
Dealers know prequalified buyers are serious.
2. Time your purchase. Salespeople usually have monthly quotas to
meet, with bonuses for any additional business. So aim for the end of
the month if you’re looking for a deal, says Edmunds.com. Also consider
scheduling your visit early in the week, when there are fewer customers
and the sales staff is apt to be more attentive.
3. Choose a dealership.
It’s best to get quotes
from several dealers,
either online or offline.
Definitely check out the
finalists in person. Trust
your gut. If you don’t like
the way you’re treated,
go elsewhere.
4. When evaluating price, don’t dwell solely on the monthly
payment. To make the monthly tab more affordable, the dealer may
propose stretching out repayment over five or six years. But your
car may not be worth much by the time you pay it off—and in the
meantime, you’ll hike your total borrowing cost. With a 3% loan, for
example, you’d pay $1,561 in interest to borrow $25,000 for four years.
Change that to six years, and your interest would go up to $2,348.
5. Don’t automatically agree to an extended warranty. Dealers love
to sell this add-on.
Once you find the right vehicle at the right price, we’ll make the
financing easy. Just call us at 413-732-9812 or apply on our website,
www.stcu.com. In most cases, funds are available the same day—which
means you’ll be sliding behind the wheel while there’s still plenty of 2014 left. n
5
Money Pitfalls
to Avoid this Fall
1. Waiting to lock in a price on a heating oil contract
Oil prices usually climb during the heating season, so it’s risky to
put off signing a contract.
2.
Paying for fall fix-ups with a high-cost credit card
If home improvements are on the horizon, plan ahead. For
example: instead of diving for your credit card to pay for new
shingles when the roofers show up, talk to us now about
obtaining a home equity line of credit. It costs nothing to keep
an unused line available. When you do use it, the rate is typically
lower than other ways to borrow, and interest is tax-deductible if
you itemize.
3.
Putting off a ticket purchase for holiday travel
Last-minute deals may pop up—but do you want to risk missing
them? According to a survey by CheapAir.com, the lowest fares
on domestic flights in 2013 were offered during a window of
29-104 days in advance. The bad news: lead times were even
longer for good deals on holiday travel. Better book now!
Poor Richard’s Guide to
Home Equity Lines
“Be ye prudent in managing debt for
which thy house is collateral.”
If home equity lines of credit (HELOCs) had been around when
Benjamin Franklin was writing “Poor Richard’s Almanack,” he
might have included this: “Be ye prudent in managing debt for
which thy house is collateral.”
4. Neglecting to max out your 401(k)
If your retirement savings plan has an employer match, check
with your HR manager to see if you’ll qualify for the maximum
in matching funds by year-end. If not, consider bumping up your
savings rate now to earn more free money. No employer plan?
You still have almost six months till April 15, 2015, to max out a
Traditional or Roth IRA for 2014.
5. Postponing winter preparations till the snow flies
Let’s say you know you’ll need snow tires, cash for holiday gifts,
and/or a new oil furnace. If you plan now, we may be able to
help you find affordable ways to come up with the money. To
save up for your tires, for example, you could stash $80 or $100
in a share account every two weeks. As for a furnace or other
major purchase, a home improvement loan or equity credit line
could be a cost-efficient way to pay for this investment over
time.
As every true New Englander can confirm, winter will arrive
before we know it. If you’re going to need financing before the
lobsters put on mittens, drop by now or give us a call. Fall is a
great time to make plans—and we’re ready to help. n
We know many members who are attracted by the low cost,
convenience, and tax advantages of our equity lines must feel the
same way. Whether you already have a HELOC or are interested
in applying for one, consider five suggestions that the wise Ben
Franklin might have offered:
Pay off your balance every month if you can. If you use your line
for a purchase like a vacation or a new couch, try to pay it back
quickly. Otherwise, your borrowing costs will keep compounding
while the value of your purchase diminishes.
Reserve your credit line for long-term investments. Home
improvements, education expenses, or consolidating higher-priced
debt will all pay returns in the long run. Such substantial benefits
help offset the risk of borrowing against your home.
Pay more than the monthly minimum. Minimum payments are
usually structured to cover current interest plus a modest slice of
principal. If you pay more than that every month, you’ll shrink
your balance faster and owe less interest overall.
Don’t use all your available credit. To help optimize your credit
score, CardHub.com suggests trying to use no more than 60%
of the credit available across all of your accounts. (The proportion of
debt to available credit is called your “credit utilization ratio.”)
Don’t close the line when your immediate need is past. There’s no
cost to keep a HELOC open for emergencies or opportunities. Closing
an inactive line can actually lower your credit score, since it will cause
the utilization ratio of your remaining credit to increase.
During the recession, many homeowners realized they had
overdosed on home equity spending. Lesson learned. Today,
prudent management can help you stay in control of your HELOC,
no matter what the economy is doing. It’s this kind of behavior,
we believe, that could have made Poor Richard a little richer. n
Put Your Credit Union in the Palm of Your Hand
Q. If I lose my phone, can someone
else access my banking details?
A. N
o identifiable personal banking data
is actually stored on your phone, and
access to your accounts is passwordprotected on our end. In any case, it’s
best to lock your phone with a password
so it can’t be used at all if lost or stolen.
If you have a smartphone but haven’t yet tried Mobile
Banking, you may be missing a great way to save time and
simplify your life. Not sure yet if it’s right for you? Here are
some of the answers you may have been waiting for.
Q. Why
use Mobile Banking? I’m happy with Online
Banking.
A.Mobile Banking gives you better control of your money.
You can confirm deposits, monitor transfers, and check
your transaction history wherever there’s a mobile
connection. That adds safety, too—because closer
monitoring of your accounts helps you guard against
identity theft.
Q. Is there a charge to use Mobile
Banking?
A. U
sage of the Mobile Banking app is
free for our members. Depending on
your wireless service provider, data
usage charges may apply.
Q. What kind of banking can I do on my phone?
A. Y
ou can view account balances, make transfers, pay bills,
locate ATMs, receive activity or security alerts, yes, through
your phone!
Q. What kind of phone do I need to
have?
A. O
ur Mobile Banking app is compatible
with the most popular mobile devices.
Q. Is my data secure while I’m using Mobile Banking?
A. Y
es. 128-bit SSL encryption protects your information
as it travels from your mobile device to us. The 128-bit SSL
encryption technology is the same encryption that safeguards
our Online Banking transactions.
We think you’ll see that in this fast-paced world, there’s nothing quite
as convenient as go-anywhere, use-anytime Mobile Banking. n
NEW HIRES
Stop in and meet the newest members
of the STCU team…
Welcome Shaneka Hernandez as our new Westfield Part-Time Teller
Welcome Natalie Davis as our new Operations Manager
Welcome Lisa Gerulaitis as our new Mortgage Processor
As a valued member of STCU Credit Union, you can participate in our Holiday-Skip-A-Payment program. Fill the coupon
out and brint it into the STCU Credit Union. Use the extra cash for holiday, travel, gifts, entertaining or holiday expenses.
It’s our Holiday “Thank You” for being a loyal STCU Credit Union member!
Get Extra
Holiday Cash
by Skipping Your Next Loan Payment!
Holiday Skip-A-Payment Application
Holiday Skip-A-Payment Rules
1. A
processing fee of $25.00 will be deducted from your account. If you do not have $25.00 in your account, please
mail a check for $25.00 with your Holiday Skip-A-Payment request.
2. L oans can not be past due at the time of your request. Real Estate loans, Home Equity Lines of Credit loans, Home
Equity loans and Home Improvement loans are not applicable. Application and approval required for all skipped
payments. All applications are subject to STCU Credit Union’s approval.
3. A
pplications should be received at least four (4) business days prior to loan due date. Interest will continue to
accrue on unpaid balances through skipped payment period.
Loan No. Payment Amount
Skip o December
or
o January Payment
Loan No. Payment Amount
Skip o December
or
o January Payment
o Savings Please deduct the $25.00 processing fee from my (please check one)
o Checking
o Payment Enclosed
Member Number
Signature Joint Signature (if applicable)
Mail to: STCU Credit Union, 145 Industry Ave., Springfield, MA 01104
By signing above, you authorize STCU Credit Union to extend your final loan payment by one month. The $25.00
processing fee per loan will be deducted from your account selected above unless payment is enclosed, interest will
continue to accrue on unpaid balances through the skipped payment period.
FOR CREDIT UNION USE ONLY
Account #____________________________ Suffix_______________________Pay Code__________
Next Due_____________________________ Process Date_________________Fee________________
Advance Due Date_____________________ Payroll________________________________________
STCU Credit Union Financial Services
STCU CU Board of Directors
Information from STCU Credit Union and CFS* to help keep your financial life in balance.
Todd Cieplinski
Chairman
Social Security Benefits
If you are approaching retirement or already retired, you probably have some questions
about whether or not you are eligible for Social Security benefits. Especially in the
aftermath of significant financial losses, it is important to take a close look at the income
benefits Social Security may provide.
Who Benefits from Social Security?
The Social Security program affects virtually every American, and is often the cornerstone
of most people’s retirement plans. According to the Social Security Administration, today
about 165 million people work and pay Social Security taxes and about 59 million people
receive monthly Social Security benefits.
Social Security Basics
The amount of Social Security benefits paid in retirement is generally based on the
average of the highest 35 years of wages earned and the recipient’s age at retirement.
How Do Benefits Accrue?
As you earn income and pay taxes*, you also earn “credits.” For income earned in 2014,
you should accumulate one credit for each $1,200 in earnings—up to a maximum of
four credits per year. The amount of earned income required to earn one credit usually
increases every year. Most people need 40 credits (approximately 10 years of work) to
qualify for benefits.
*For Specific Tax Advice Consult a Qualified Tax Professional
Retire Sooner or Later?
You generally can start receiving Social Security benefits as early as age 62. However, if
you start your benefits early, your benefits may be reduced. Choosing when to retire and
begin drawing benefits may be one of the most important decisions you will make in
your lifetime.
Full Retirement Age
According to the Social Security Administration (SSA), if you were born from 1943
to 1954, your full retirement age is 66. If you choose to retire when you reach full
retirement age, you will receive your full retirement benefits. But if you retire before
reaching full retirement age, you will receive reduced benefits for the rest of your life.
Who Can Assist Me?
As you prepare to review where you stand financially it may be helpful to consult with
a financial professional who can assist in making those informed decisions. Planning
carefully, investing wisely and spending thoughtfully will help increase the likelihood that
you stay on track to a financially secure retirement. n
* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer
(Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise
federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of
principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit
investment products and services available to credit union members. CFS and its Registered Representatives do not provide tax
advice. For such advice, please consult a qualified tax advisor.
Norman Halls
Vice-Chairperson
Lynn Boscher
Assistant Treasurer
John McDowell
Secretary
Fred Blanchard
Director
Bradford Campbell
Director
Matthew Dowd
Director
Roland Joyal
Director
Kenneth Ketchum
Director
Peter H. Lappin
Director
Sidney Snegg
Director
Michael Ostrowski
President and CEO
Board Chairman: [email protected]
Board of Directors: [email protected]
CEO Michael Ostrowski: [email protected]
Main Branch:
145 Industry Avenue, Springfield, MA 01104
453 East Main Street, Westfield, MA 01085
1-413-732-9812 TOLL-FREE 1-877-732-9812
FAX: 1-413-737-7635
LOAN DEPARTMENT FAX: 1-413-886-0156
www.stcu.com
Easy Bank: 1-413-827-8000
Outside of Hampden County Toll-Free: 1-800-264-0600
Lost/Stolen ATM/Debit Card: 1-413-732-9812
Lost/Stolen Credit Card: 1-877-875-8078
Lost/Stolen Debit Card after hours: 1-800-472-3272
24/7 Lending Call Center: 1-800-805-0399
The Chalk Board is a quarterly newsletter publication for the
benefit of STCU members.
Holiday Closings
Monday,
Tuesday, Thursday, Wednesday, Thursday, Wednesday, Thursday, October 13
November 11
November 27
December 24
December 25
December 31
January 1, 2015
Columbus Day
Veterans Day
Thanksgiving Day
Closing at 1pm
Christmas
Closing at 1pm
New Year’s Day
Our Mission
Assist our members in
reaching their financial
goals by providing superior
products and services in a
personalized manner.