AFCU.org

ARKANSAS FEDERAL CREDIT UNION
AFCU.org
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July 2009
Board of Directors
Garold L. White, Chairman
Phillip B. Boudreaux, Vice Chairman
Jerry E. Spratt, CPA, CFE, CGFM, CFSA, Secretary
Art Williams, Treasurer
William Shrigley, Director
Volunteer Supervisory Committee
Robert Rodgers, CPA, Chairman
Jay Simmons, Secretary
Don Greene, Member
Reginald Ford, Member
Thomas Russell, Member
Volunteer Credit Appeals Committee
Dale Duell, Chairman
Jan Avant, Member
Carol Lunday, Member
HOLIDAY
CLOSINGS
All AFCU branch and drive-up teller
locations will be closed in observance
of the following holidays:
• Labor Day
Monday, September 7, 2009
AFCU wishes
you and your
family a safe and
happy holiday.
LARRY’S LETTER - KEEPING YOU INFORMED
As summer approaches
and as the national
economy continues
to sputter, there have
been some glimmers of
positive news that has
been encouraging. It
seems like the economy,
while a long way from
fully recovering, is moving in the right
direction and all the news we hear daily is
NOT bad news.
Your credit union continues to be a safe
and secure place for all your financial
needs. We continue to be well capitalized.
The second quarter saw your credit union
continue to grow modestly as more and
more of you continue to trust us as your
financial partner. We continue to make
loans, provide a safe and secure place to
put your savings, and continue to deliver
relevant products and services that will help
you weather the economic storm we are all
dealing with. We want you to know that we
are here to serve you, our members, and to
assist you in every way we can to maneuver
through these difficult times.
In June we delivered the long awaited
AFCUDeposit service. This service allows
you to deposit checks from the convenience
of your home or office as long as you have a
computer, scanner and internet connection.
You can go to our website, call center, or
visit your branch to learn more about this
innovative, time saving service. Signing up
is a simple, easy process that we can assist
you in accomplishing. With this service,
you will not waste your time on Saturdays
or rushing around before closing time. Just
AFCUDeposit and use the extra time you’ll
save enjoying the things you do!
Your credit union is expanding again! We
have acquired a location in Hot Springs to
be opened in the fourth quarter of this year.
Located at 1607 Albert Pike Road, it is adjacent
to and in front of the Wal-Mart Supercenter.
The location will have a drive-up window and
we already have an ATM in the Murphy Oil
Gas Station located in front of the Wal-Mart.
This allows us to service our existing members
in Hot Springs, as well as grow in the Hot
Springs area. This is just another validation
of how your credit union makes it easy for
you to do business with us! Your continued
support of our cooperative is a major reason
we continue to grow and are able to offer new,
innovative products that make it easy to do
business with your credit union!
Speaking of new products, our new student
loan program for our membership is up
and running and many of you have already
taken advantage of this great new product.
This program allows us to offer student
loans to individuals that need a little more
funding than the government sponsored
programs provide. Visit our website for
more information on this great new product.
This is just another way AFCU is improving
each member’s financial life!
The management team and your board of
directors are thankful for your continued
and increasing use of our cooperative. You,
the members, are the reason we exist. As
we look to the future, you can be assured
that we will consistently strive to exceed
your expectations, continue to deliver
innovative products and services, and most
importantly to always try and improve your
financial lives in everything we do.
We wish you all a safe and fun filled summer.
May God continue to bless you and yours!
Member Education Seminars
Membership in Arkansas Federal offers many benefits such as the educational seminars and
workshops intended to educate members and help them understand their finances. If you are
interested in one of the member education seminars below, call AFCU at 501-982-1000 in central
Arkansas or 800-456-3000 outside central Arkansas to register or for more information.
“Combining the Principals of Investing with your Investing Behavior”
North Little Rock Branch
Tuesday, July 21 @ 5:30 pm
Mobile.AFCU.org
Jacksonville Branch
Thursday, August 20 @ 5:30 pm
West Little Rock Branch
Tuesday, September 22 @ 5:30 pm
page two
ARKANSAS FEDERAL IS
BRANCHING OUT
TO HOT SPRINGS
In the 4th Quarter of 2009, Arkansas Federal
will open our 13th branch location in Hot
Springs, Arkansas. AFCU recently acquired
a location at 1607 Albert Pike Road; this
location will be a full service branch with
a drive-thru window, and an ATM that
is already located right next door in the
Murphy Oil Gas Station. This is one more
way AFCU is making it easier for members
across Arkansas to do business with us.
DEBT CANCELLATION —
Prepare for the Unexpected
Many events in life come unexpectedly; with AFCU’s debt cancellation you can protect your family
from the unexpected. By purchasing AFCU’s low-cost debt cancellation protection, you would
have the peace of mind that your family would be covered in the event that you and/or your
co-borrower were to become unemployed, disabled or if an unexpected death were to occur.
Debt cancellation works by cancelling some or all of your debt when a protected event does
occur. This flexible protection plan will allow you and/or your co-borrower to choose from
coverage’s that best fit your lifestyle.
Fees for debt cancellation protection are calculated and applied monthly to the decreasing
balance of your loan. You only pay for what you need. Protect yourself against that
unforeseen event.
What Debt Cancellation Does for You:
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• Makes your loan payments
• Protects your credit rating
• Protects you if your spouse dies
• Prevents late fees
• Prevents repossessions of property
For additional information regarding
AFCU’s debt cancellation, contact a Call
Center representative at 501-982-1000
or 800-456-3000 or visit one of our
convenient branch locations.
Have a Traditional IRA?
Over age 70 ½? Let AFCU distribute your Required
Minimum Distribution (RMD) automatically!
Tired of hassling with your IRA? Let AFCU handle it for you! If you have a Traditional IRA, you may already know that when you reach age 70 ½, the IRS
requires you to begin making a yearly distribution. The amount you must withdrawal is calculated and based off of your current age and the Fair Market
Value (FMV) of your Traditional IRA. You may also withdraw more than the required amount, if you choose. When we distribute RMDs, we recalculate
the required amount every year, and you have 4 frequencies to choose from: monthly (1st business day of each month), quarterly (can begin any month),
semi-annually (can begin any month), or yearly (month of your choosing).
Q: Is there a deadline to withdraw my RMD?
A: You have until April 1st of the year following the year
when you reach age 70 ½ to take your first distribution.
Each subsequent year RMD must be distributed by
December 31st in that year.
Q: Can I take my distribution from just one IRA
or do I withdraw from each one?
A: If you have a Traditional IRA with multiple financial
institutions, your RMD must be calculated from each one.
At AFCU, as long as all of your Traditional IRA investments
are listed on the same membership, those Traditional
IRA investments will be housed under one Traditional
IRA plan. Thus, when we calculate the RMD from your
AFCU IRA plan, it will include all of your Traditional IRA
investments for that membership.
Q: If I am already receiving periodic payments
from my Traditional IRA, do I need to withdraw
additional funds to satisfy the RMD?
A: Possibly. Periodic payments are distributions
made in regular installment intervals over a period of
AFCU.org
more than one full year and can normally begin after
reaching age 59 ½. These intervals can be monthly,
quarterly, semi-annually, or yearly. When you reach age
59 ½, you may begin withdrawing funds from your IRA
without IRS penalty. If you are already taking periodic
payments when you reach age 70 ½, you should still
have your RMD calculated.
Q: Does my RMD have to distribute automatically?
A: No. You have multiple option of distributing your IRA
shorter, we will base the payments on the time period
you select. If the time period you select is longer, we
will make payments under payment option #5.
4. Specific Amount Payments—You will receive
payments equal to the amount you indicate. The
annual amount of these payments must equal or
exceed your RMD. If the amount you indicate does
not meet or exceed your RMD, we will make payments
under payment option #5.
funds. They are:
1. Member Responsible for Payments—You elect to
be responsible for calculating and receiving the RMD for
your IRA. This means AFCU will NOT distribute any funds
from your IRA unless you specifically instruct us to do so.
5. Required Minimum Distribution Payments—
You will receive the RMD for the IRA every year
in the month of your choosing. If you do not
instruct a specific month, we will process your
payment in November.
2. Lump-Sum Payment—You elect to receive the entire
balance of your Traditional IRA in a single lump-sum
payment that will close the IRA.
Payment options # 3, 4 & 5 can be set up to distribute
automatically either monthly, quarterly, semi-annually,
or annually. To obtain a form to set up automatic
distributions, or if you have any questions, contact our
Call Center at 501-982-1000 or toll-free at 800-456-3000
and select menu option #3 or visit one of our convenient
branch locations.
3. Payments Over a Specific Number of Years—
We will compare the time period laws to determine
the RMD for the IRA. If the time period you select is
page three
How Not to Get Hooked by a ‘PHISHING’ Scam
“We suspect an unauthorized transaction on your account. To ensure that your account is not
compromised, please click the link below and confirm your identity.”
“During our regular verification of accounts, we couldn’t verify your information. Please click here
to update and verify your information.”
Have you received an email with a similar message? It’s a scam called “phishing” — and it
involves Internet fraudsters who send spam or pop-up messages to lure personal information
(credit card numbers, financial account information, Social Security number, passwords, or other
sensitive information) from unsuspecting victims.
According to the Federal Trade Commission (FTC), the nation’s consumer protection agency,
phishers send an email or pop-up message that claims to be from a business or organization
that you may deal with — for example, an Internet service provider (ISP), credit unions, bank,
online payment service, or even a government agency. The message may ask you to “update,”
“validate,” or “confirm” your account information. Some phishing emails threaten a dire
consequence if you don’t respond. The messages direct you to a website that looks just like a
legitimate organization’s site. But it isn’t. It’s a bogus site whose sole purpose is to trick you into
divulging your personal information so the operators can steal your identity and run up bills or
commit crimes in your name.
The FTC suggests these tips to help you avoid getting hooked by a phishing scam:
• If you get an email or pop-up message
that asks for personal or financial
information, do not reply. And don’t
click on the link in the message,
either. Legitimate companies don’t ask
for this information via email. If you are
concerned about your account, contact the
organization mentioned in the email using a
telephone number you know to be genuine,
or open a new Internet browser session and
type in the company’s correct Web address
yourself. In any case, don’t cut and paste
the link from the message into your Internet
browser — phishers can make links look
like they go to one place, but that actually
send you to a different site.
• Use anti-virus software and a firewall,
and keep them up to date. Some phishing
emails contain software that can harm your
computer or track your activities on the
Internet without your knowledge.
Anti-virus software and a firewall can
protect you from inadvertently accepting
such unwanted files. Anti-virus software
scans incoming communications for
troublesome files. Look for anti-virus
software that recognizes current viruses
as well as older ones; that can effectively
reverse the damage; and that updates
automatically.
A firewall helps make you invisible on the
Internet and blocks all communications
from unauthorized sources. It’s especially
important to run a firewall if you have a
broadband connection. Operating systems
(like Windows or Linux) or browsers (like
Internet Explorer or Netscape) also may offer
free software “patches” to close holes in the
system that hackers or phishers could exploit.
• Don’t email personal or financial
information. Email is not a secure method
Mobile.AFCU.org
of transmitting personal information.
If you initiate a transaction and want
to provide your personal or financial
information through an organization’s
website, look for indicators that the site is
secure, like a lock icon on the browser’s
status bar or a URL for a website that
begins “https:” (the “s” stands for “secure”).
Unfortunately, no indicator is foolproof;
some phishers have forged security icons.
• Review account statements as soon as you
receive them to check for unauthorized
charges. If your statement is late by more
than a couple of days, call to confirm your
billing address and account balances.
• Be cautious about opening any
attachment or downloading any files
from emails you receive, regardless of who
sent them. These files can contain viruses
or other software that can weaken your
computer’s security.
• If you believe you’ve been scammed,
file your complaint at ftc.gov, and then
visit the FTC’s Identity Theft website at
www.consumer.gov/idtheft. Victims of
phishing can become victims of identity
theft. While you can’t entirely control
whether you will become a victim of
identity theft, you can take some steps
to minimize your risk. If an identity thief
is opening credit accounts in your name,
these new accounts are likely to show up
on your credit report. You may catch an
incident early if you order a free copy
of your credit report periodically from any
of the three major credit bureaus. See
www.annualcreditreport.com for details
on ordering a free annual credit report.
You can learn other ways to avoid email
scams and deal with deceptive spam
at ftc.gov/spam.
NEW AFCU
PARTNERS
Employers in today’s labor market must
continually strive to provide competitive
benefit packages to attract and retain
qualified employees. You can gain the
competitive edge at no cost by providing
the option of credit union membership to
your employees.
As a partner with Arkansas Federal,
employees of your company or
members of your association will have
the option of using full service, quality
financial products and services such as
Free Checking, competitive loan rates,
great savings rates and access to AFCU
accounts around the clock with services
such as Free Online Account Access,
AFCUDeposit, Unlimited Free Internet Bill
Payment, and Touch-Tone Teller.
Several new partners have decided
to make AFCU’s product and services
available to their employees/members
over the past few months. We want to
take this opportunity to welcome each
one of them to the Arkansas Federal
Credit Union family!
Arklahoma Pipeline, Inc., Van Buren, AR
Henard Utility Products, Inc., Searcy, AR
B.R. McGinty, Bryant, AR
Embassy Suites Little Rock, Little Rock, AR
Jones Environmental Services, LLC,
Van Buren, AR
Camp Aldersgate, Inc., Little Rock, AR
United Cerebral Palsy, Little Rock, AR
West Arch Internal Medicine, Searcy, AR
Dreamland Academy, Little Rock, AR
Furniture and Appliances Now,
Fayetteville, AR
Fishnet Missions, Inc., Jacksonville, AR
Tapp Interiors, Fort Smith, AR
City of Searcy, Searcy, AR
Riviana Foods, Inc., Carlisle, AR
Arkansas Building Services, Little Rock, AR
Tell your co-workers and family members
about the great benefits available at
AFCU, and invite them to join Arkansas
Federal Credit Union. If you know of a
business or association that would like
to offer credit union membership to its
employees/members, please call the
Marketing Department at 501-533-2219
or 800-456-3000 ext. 2219.
page four
JOB CHANGE?
Don’t Ignore Your Retirement Plan Dollars.
A Message from
MOVE
Arkansas Federal Financial Services
YOUR MONEY
Moving money between accounts used to require a visit to a branch or ATM
to deposit a personal check. Now you can move money electronically from
another financial institution to your Arkansas Federal Credit Union account.
Transfer money to other members’ accounts,
such as a spouse’s, child’s or parent’s account.
Make weekly transfers into your savings account.
Transfer money monthly to make your mortgage
or loan payments.
Managing your money
has never been easier!
Standard online transfers into your Arkansas Federal Credit Union account are free. There is a $7.00 service fee if
an ACH origination is handled by our Call Center. Other financial institutions may charge a fee for this service.
SCHOLARSHIPS AWARDED TO
FOUR ARKANSAS SCHOLARS
Arkansas Federal Credit Union is pleased to award four $1,000 scholarships to
Arkansas high school graduating seniors who display exemplary achievement in
academics, extra-curricular activities, leadership, and community service. Each
senior is awarded a $1,000 scholarship to the college or university of their choice.
The 2009 Arkansas Federal Credit Union Scholarship Award winners are:
Miss Kimberly Kaelin of
Maumelle, AR and a graduate
of Oak Grove High School
will attend The University of
Central Arkansas.
Mr. Aaron Stearns of
Little Rock, AR and a graduate
of The Education Alliance
will attend Arkansas State
University.
Miss Hannah Sandberg
of Sherwood, AR and a
graduate of Sylvan Hills High
School will attend Arkansas
Tech University.
Mr. Bradley Charbonneau of
Jacksonville, AR and a graduate of
Jacksonville High School will attend
The University of Central Arkansas
or The University of Dallas.
Scholarship applications for next year’s awards will be available
beginning in January 2010.
AFCU.org
Mike Van Bokhoven
It is probably one of your biggest assets.
Don’t ignore it. People change jobs all the
time, but many forget some important details
– like their retirement plan money and leave
it in their old employer’s sponsored pension
or 401(k) plan.
Could this be you? If so, you really owe it to your future to
consider where to put the retirement assets you’ve worked so
hard to build up. The wrong move could cost you thousands
and greatly affect the quality of your retirement years.
One option is to consider moving over any retirement plans
from a former employer into an IRA.
Benefits include:
1. Simplicity – Consolidate your retirement assets into
one IRA. It will simplify your record keeping and give
you a better picture of your overall portfolio.
2. Eliminate Investment Overlap – Having several
accounts can have you holding many of the same type
of investments in each account, and cause you to be out
of balance for your set of financial circumstances.
3. Wider Array of Investment Choices – It is very
common for employer plans to have only a few
investment options. Rolling assets into an IRA will
literally give you thousands of investment choices.
4. Roth Conversions – Once your plan is rolled into a
traditional IRA, you may be able to convert it to a Roth IRA.
You can only convert to a Roth IRA if your income does not
exceed $100,000 and you file a joint return if married.
5. Beneficiary Distribution Options – Many employer
plans have very limited and rigid beneficiary
distribution options, especially for non-spouse
beneficiaries. Rolling your assets into an IRA offers
many additional flexible distribution pay out options,
such as the “Stretch IRA”(paying out the death proceeds
over multiple generations of beneficiaries).
Need help deciding what option is best for you? Contact
Mike Van Bokhoven, Arkansas Federal Financial Services
Representative serving the members of Arkansas Federal
Credit Union at 501-533-2101 for a no-cost, no-obligation
Retirement Assets Consultation. Today is the best time to
get started!
Representatives are registered, securities are sold, and investment advisory services
offered through CUNA Brokerage Services, Inc. (CBSI), member NASD/SIPC, a
registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa
50677, toll-free (866) 512-6109. Nondeposit investment and insurance
products are not federally insured, involve investment risk, may
lose value and are not obligations of or guaranteed by the financial
institution. CBSI is under contract with the financial institution, through the financial
services program, to make securities available to members.
B2MM-0405-24A
page five
AFCU INFORMATION
AF CU B R AN C H LO C ATI ONS
Fort Smith Branch
7887 Phoenix Ave.
Cabot Branch
100 S. Rockwood Dr.
Little Rock Branch
1001 W. Capitol Ave.
West Little Rock Branch
1221 S. Shackleford Rd.
North Little Rock Branch
4848 North Hills Blvd.
Bryant Branch
115 Harvest Dr.
Open Saturday from 9:00 a.m.-12:00 p.m.
Jacksonville Branch
2424 Marshall Rd.
Conway Branch
220 Skyline Dr., Hwy. 65 North
Searcy Branch
727 West Beebe Capps
UALR Branch
Stabler Hall, Suite 110
Open Monday-Friday from 10:00 a.m.-6:00 p.m.
Camp Robinson Branch
Bldg. 5305, MWR Complex
Open Monday-Friday from 8:30 a.m.-5:00 p.m
Little Rock Air Force Base Branch
983 Cannon Dr.
Open Saturday from 9:00 a.m.-12:00 p.m.
AF CU ATM ON LY LOC ATI O N S
Alltel Walk Up ATM
#1 Allied Drive, Building 3, First Floor Lobby
Cabot Drive Up ATM
2241 Bill Foster Memorial Hwy.
Dickey Stephens Park Walk Up ATM
400 West Broadway - North Little Rock
Federal Building Walk Up ATM
700 W. Capital Ave., First Floor - Little Rock
LRAFB Exchange Drive Up ATM
Building 940 at Arnold Drive
LRAFB Shoppette Drive Up ATM
Building 1996, Arnold Drive & Arkansas Blvd.
Searcy Drive Up ATM
2315 W Beebe Capps - Searcy
State Capitol Walk Up ATM
First Floor Lobby - Little Rock
UALR Stephens Center Walk Up ATM
28th & University Avenue
Wal-Mart Supercenter Drive Up ATMs
Jonesboro – 1807 E. Highland Drive
Searcy – 3509 East Race Street
Conway – 3950 Dave Ward Drive
Pine Bluff – 5601 South Olive Street
Hot Springs – 1605 Albert Pike
PH O NE N U MB E R S
Central Arkansas:
Fort Smith Local:
Conway Local:
Cabot Local:
Bryant Local:
Searcy Local:
Toll-Free Services:
TDD Number:
FAX Number:
501-982-1000
479-782-1000
501-329-1000
501-743-3000
501-847-1695
501-268-4762
800-456-3000
501-982-8732
501-982-FAXX
24 - H O U R TO U C H TON E TE LLE R
501-982-AFCU (2328) or
toll-free 800-982-AFCU (2328)
MAILIN G AD D R E S S
P.O. Box 9, Jacksonville, AR 72078-0009
INTER N E T B R AN C H
www.afcu.org
You may have heard about Health Savings Accounts (HSAs) in the
news as a new way for individuals to pay for health care costs.
But what are Health Savings Accounts?
HSAs are individual accounts that are designed to let individuals
that have chosen a high-deductible health plan (HDHP) use
pre-tax dollars to pay for current or future qualified medical
expenses. With an HSA account you can payroll deduct your contributions
ributions
n
and the account earnings will accumulate on a tax-deferred basis. Distributions from your HSA are
tax-free if they are used for qualified medical expenses.
Arkansas Federal’s HSA account is a checking account featuring a debit card, unlimited check
writing privileges and dividends. Security, flexibility, control and portability are just a few of the
many advantages to opening your own HSA. Check out the other benefits of our HSA account:
• No “use it or lose it” rule, so funds remaining
in your HSA roll over from year to year.
• Your contributions are tax-deductible.
• You get HSA checks and an HSA debit
card for making qualified medical
purchases or payments.
• Your HSA funds can be accessed
at any of our branches or by calling our Call
Center at 501-982-1000 or 800-456-3000.
• You can take advantage of our FREE payroll
deduction service and allocate a part of each
paycheck for automatic deposit into your HSA.
HSA accounts may be opened at any Arkansas Federal Credit Union branch office. You can also
contact our Call Center at 501-982-1000 or 800-456-3000 and selecting menu option #3.
FREE CREDIT REPORTS TO CONSUMERS…NO STRINGS ATTACHED!
The Fair and Accurate Credit Transactions (FACT) Act gives consumers’ access to one free copy
of their credit report annually from each of the three nationwide credit bureaus: Equifax, Experian,
and TransUnion.
To order you free credit report, go to www.annualcreditreport.com or call 877-322-8228. You
may also request your free annual credit report by mail. Print the Annual Credit Report Request
Form at www.ftc.gov/credit and mail it to Annual Credit Report Request Service, P.O. Box 105281,
Atlanta, GA 30348-5281.
Do not be fooled by companies offering to provide you with a free credit report if you sign up for
services or purchase products. You are entitled to one free credit report from each of the three
credit bureaus each year…no purchase necessary! We suggest that you spread out your free credit
report requests every three months or so throughout the year so you can guard against identity
theft on an ongoing basis instead of receiving all three reports at the same time.
E -MAI L
[email protected]
These branches have a 24/7 Xpress Branch self service
lobby open to members 24 hours a day.
We also have over 3,500 Branch offices
at Credit Union Service Center locations
in 47 states and seven foreign countries to
serve you. To find a location near you,
go to www.cuservicecenters.com.
ATM NETWORKS
Surcharge-Free ATM Networks
page six
TAX FREE
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The Banner is the official quarterly publication of Arkansas Federal Credit Union.
Comments and suggestions should be addressed to:
Marketing Department
Arkansas Federal Credit Union
P.O. Box 9
Jacksonville, AR 72078-0009
The Arkansas Federal Credit Union Banner Newsletter
does not represent legal, accounting, or other
professional advice. Although we try to ensure
the information contained is accurate,
no party assumes liability for loss or
damage due to dependence
on this material.
Mobile.AFCU.org
Your savings federally insured to at least $250,000
and backed by the full faith and credit of the
United States Government. National Credit Union
Administration, an agency of the federal government.
In addition to Federal Insurance,
members’ savings in the credit union
are insured with an
additional $250,000 of coverage.
We do business in accordance with
the Federal Fair Housing Law and the Equal
Credit Opportunity Act