New Investment Option for NCUF Posted by AVCU on 10:03 AM

Looking for a way to invest those surplus member deposits? Why not help credit union research and charitable giving at the same time. Explore the Community Investment Fund (CIF) with the National Cooperative Bank (NCB) by way of a new two-year certificate of deposit (CD) investment. CIF with NCB is a new CIF option thanks to a strategic collaboration between NCB and the NCUF.

CIF with NCB is very similar to the traditional CIF through the corporate network but has some unique features. Contribution levels to NCUF can be 50 percent, 75 percent, and 100 percent of the interest earned on the account. Also, while NCB is a cooperatively owned financial institution, there is no requirement for credit unions to purchase stock in NCB.

Credit unions opening a CIF deposit account at NCB can designate 50 percent, 75 percent or even 100 percent of the interest income earned on the account to be automatically donated to NCUF in support of national and state-level community development programs.

In addition to the 2-yr CD option, products include CDs with terms of six-mo, 12-mo, 18-mo, three-yr, and a liquid Money Market Deposit Account (MMDA) – all at competitive rates of interest. More on CIF with NCB products and rates may be found at: http://www.cifwithncb.coop/default.aspx?id=4374.

As a federally chartered savings bank, deposits at NCB are FDIC-insured up to $250,000 per Tax ID.

The Community Investment Fund gives credit unions the ability to leverage investments to support innovative credit union programs. CIF allows half of the dividend income to be returned to investing credit unions. The other half is donated to NCUF. In turn, NCUF disburses its half of the CIF dividends accordingly:

1. When credit unions designate NCUF & State Credit Union Foundations (General Fund) NCUF grants half of its donated dividend to each investing credit union’s state foundation or league. NCUF uses the remaining portion of the CIF dividend to support its national programs including:REAL Solutions®; Credit Union Development Education; Innovation Grants; and CUAid - Disaster Relief.
2. Credit unions can also designate their investment in one of the following funds:Credit Union Development Education Fund; Pete Crear Fund; International Development Fund; and Callahan Legacy Fund.