TRAINING TIP:
PREFFERED MONEY MARKET ACCOUNTS Higher Yields Provide Greater Value For Members
Law Enforcement’s Premier Financial Services Provider
PREFERRED MONEY MARKET ACCOUNT
PREFFERED MONEY MARKET ACCOUNTS Higher Yields Provide Greater Value For Members DETAILS:
The Preferred Money Market Account is a high-balance, high-yield account.* Unlike our current money market account, the Preferred Money Market account pays a higher yield than our regular money market account, but still includes the same check-writing and debit card privileges. The minimum opening deposit and balance for this account is $10,000 in order to receive the higher yield. Essentially, we are seeking to attract new deposits and reward members with higher rates for having higher balances. Preferred Money Market Accounts will offer the following APYs as of 12/20/22:
Deposit Balance Range
RATE*
APY*
$10,000 - $24,999
1.44%
1.45%
$25,000 - $49,999
1.54%
1.55%
$50,000 - $99,999
1.64%
1.65%
$100,000+
1.74%
1.75%
PREFERRED MONEY MARKET ACCOUNT REQUIREMENTS: • Member must deposit a minimum of $10,000 of new money (not currently held by LAPFCU) to open an account. Exceptions may be granted on a case-by-case basis. There is no maximum deposit limit. • Daily balance must be kept above $10,000 or the tier-minimum balance to get preferred rates. Lower balances will earn the standard money market account yield. • APYs in each tier are variable and subject to change without notice at any time.
DATES:
Preferred Money Market Accounts will be offered starting Tuesday, December 20, 2022.
COLLATERAL FOR MEMBERS:
PREFERRED MONEY MARKET ACCOUNT
CAMPAIGN PURPOSE:
Our goal is to attract new deposits and money from other institutions by providing a better return on large member deposits. An increase in deposits improves the company’s bottom line and contributes to our Scorecard results because of the interest income we can earn by investing the money or loaning it out. With climbing interest rates, this option gives members a chance to accrue higher yields than our ordinary money market accounts. This product will allow us to provide greater value to our members and remain competitive in our market, while attracting new deposits.
TALKING POINTS: Money market accounts: • Have high yields to help members grow their share account balance quickly. • Help members achieve their savings goals by earning a competitive annual percentage yield (APY) with a new deposit and a minimum opening balance of $10,000. • Provide the benefits and features of both savings and checking accounts—yields more than a regular savings account, while allowing members to easily access their money with check-writing and debit card privileges, rather than tying up their money in a share certificate. • Are suited for short-term goals, rather than long-term financial planning. • Provide a good, flexible alternative to savings accounts and share certificates.
FREQUENTLY ASKED QUESTIONS: Q: How does a high-balance, high-yield money market account work? A: A money market account (MMA) gives members some of the key benefits of a savings account while allowing more flexibility in accessing and using funds in the account: • Interest: An MMA allows members to earn higher yields on their balances than a traditional savings account. However, yields are variable, which means they fluctuate as market conditions rise and fall. • Debit Cards: Members can use ATMs to make deposits, withdrawals, and transfers. • Checks: Members can write checks against their account balances. Members must maintain a minimum balance to earn the higher yield. Otherwise, the regular money market yield applies. Accounts are federally insured by National Credit Union Administration (NCUA), which covers accounts up to $250,000 per depositor per bank. Additionally, insured up to $250,000 through LAPFCU’s ASI private insurance. Q: What are the benefits of a money market account? A: Money market accounts feature: • Higher yields than savings accounts • Unlimited withdrawals • Easy access to funds with debit card and checks • Flexibility to transfer funds between multiple LAPFCU accounts • Federal insurance protection
PREFERRED MONEY MARKET ACCOUNT
Q: What are the disadvantages of a money market account? A: Money market accounts allow/require: • Minimum balance requirement • Some money market accounts limit the number of monthly transactions you can make Q: Who might be interested in a Preferred Money Market Account? A: A member might benefit from a Preferred Money Market Account if they are: • Someone who wants to maximize earnings, minimize risk, and keep funds accessible. • Affluent members with large balances at other financial institutions. • Senior savers who are looking to grow their money with virtually no risk. • Looking for a guaranteed return and government-insured funds, instead of investing in risky stocks or mutual funds. • Trying to earn higher yields than they would with a traditional savings account, with short-term goals in mind, such as a vacation, the down payment for a home or car, or building an emergency fund. Note: Money market accounts are not intended for long-term purposes, such as retirement. Q: What is the minimum deposit amount for a Preferred Money Market Account? A: The minimum deposit amount is $10,000. There is no maximum. DISCLOSURE:
*APY = Annual Percentage Yield. The minimum amount required to open a Preferred Money Market Account is $10,000 and must consist of funds not currently held at LAPFCU. The minimum daily balance requirement to maintain and receive the higher dividend rate and corresponding APY offered by the Preferred Money Market Account is $10,000. If the daily balance falls below $10,000, the regular Money Market Account dividend rate and corresponding APY will be applied. Dividends on Preferred Money Market Accounts are calculated daily based on the daily ending balance. LAPFCU may change the dividend rate/APY at any time.
CONTACT: Any questions? Contact Omar Ramirez at oramirez@lapfcu.org or (818) 779-3275. OTHER Q4 CAMPAIGNS/MEMBER COMMUNICATIONS: • ARMs (Adjustable-Rate Mortgages): Online and mobile banking prompts, digital ads, and email – November, December. • Home Loans and HELOC (Home Equity Line of Credit): Online and mobile banking prompts, digital ads, and email – November, December. • Guardian Checking: Online and mobile banking prompts, digital ads, and email – November, December. • Cash Packs: Online and mobile banking prompts, digital ads, and email – November, December. • Skip-a-Pay: Online and mobile banking prompts, digital ads, and email – November, December. • Consumer Loans Refi Offer: Members get $200 when they refinance a vehicle loan, personal loan, or credit card debt from another lender with LAPFCU. Plus, no payments for 90 days on auto loans only. Eligible loans must be a minimum of $10,000. – November, December. • CUSO Financial Services: Letter, emails, and prompts with information about helpful investment and retirement planning services in a volatile economy – November, December. • Board Election Notices: Online and mobile banking prompts, digital ads, and email – November, December. • Loan Engine Wave 32: Emails and letters with pre-approved vehicle loans and invitations to apply for real estate loans – November 2022 to February 2023. • 10-4 Share Certificates: Flyers, email, postcard, prompts, enplug – November, December.