COPY: Saving Accounts Overview for Young Adults

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Questions and Answers

The University Checking Account offers dividends on the funds held in the account.

False

What age must a person be to open a University Checking Account?

A one-time courtesy pay refund is available for NSF fees with the University Checking Account.

True

What is the main requirement for students to open the University Checking Account?

Valid student email or have a college email address Signup and view all the answers

A Secondary Savings Account requires a minimum balance to avoid maintenance fees.

False Signup and view all the answers

The minimum balance required to earn dividends on a Primary Savings Account is _____ dollars.

250 Signup and view all the answers

Members aged 17 or younger can have the Single Service Fee waived for their accounts.

True Signup and view all the answers

What is the withdrawal limit on a Money Market Account?

Six pre-authorized transfers per month or 6 transfers per month. Signup and view all the answers

The Angel Savings Account is intended for members aged 13 to 17.

False Signup and view all the answers

What feature is unique to the 13-Month Flexible CD?

It allows one penalty-free withdrawal of up to 25% of the principal or it allows member the ability to make additional deposits to the account. Signup and view all the answers

The Standard Checking Account requires a minimum age of ____.

13 Signup and view all the answers

Which of the following accounts earns 4.00% APY on balances up to $15,000?

Alliance Checking Account Signup and view all the answers

What is the monthly fee for the Basic Checking Account?

$10 Signup and view all the answers

Name 5 benefits of the Alliance Checking Account.

Benefits of Alliance Checking Account: • Earns 4.00% APY on balances up to $15,000 with monthly qualifications: • Offers pre-paid legal estate planning with complimentary will through The Legal Sentinel program. • Provides cell phone protection covering up to $400 for repairs or replacements from eligible purchases. • Includes IDProtect® for identity theft monitoring and resolution service. • Features shopping rewards for cash back at various retailers with required registration. • Access to travel discounts at thousands of local and national businesses through registration. • Offers Buyer’s Protection & Extended Warranty for debit card purchases. • Health discount savings on vision, dental, and prescriptions available. • VIP concierge services and roadside assistance reimbursement (up to $80 per occurrence). • Discounts on Movie tickets. Signup and view all the answers

What is the minimum balance requirement on the money market account in order to earn dividends

2500 or $2500 Signup and view all the answers

This checking account maybe available for members not qualifying for our standard checking account.

Basic Signup and view all the answers

Early withdrawal penalties for CDs with a maturity of 9 months or less are equivalent to ____ days of interest.

180 Signup and view all the answers

The University Checking Account is only available to students attending Detroit Mercy, Madonna, and Sienna Heights schools.

False Signup and view all the answers

When opening an account, we only pull ChexSystems for potential members 18 years of age or older.

True Signup and view all the answers

What number do we put into the Social Security field/ITIN when the member does not have an SSI# and presents a Passport plus Home Bill with current address?

999-99-9999 or 999999999 or nine nines Signup and view all the answers

Members can choose their due date for payments on the ACCU Mastercard Credit Card.

False Signup and view all the answers

What is the minimum credit limit for the ACCU Mastercard Credit Card?

$500 Signup and view all the answers

The late fee for the ACCU Mastercard Credit Card is _____ dollars.

30 Signup and view all the answers

What is the maximum loan amount for a Home Improvement Loan?

$30,000 Signup and view all the answers

Members can choose their due date for their payment on the Overdraft Line of Credit.

False Signup and view all the answers

What is the interest rate status of the loans mentioned?

Fixed Signup and view all the answers

What is the APR on balance transfers during the first 90 days?

7.99% Signup and view all the answers

There is an annual fee for the ACCU Mastercard.

False Signup and view all the answers

What is the maximum credit limit for the ACCU Mastercard?

$30,000 Signup and view all the answers

Revolving credit lines like the ODLOC have a minimum credit limit of $1,000.

False Signup and view all the answers

What penalty does the ACCU Mastercard impose for late payments?

$30 Signup and view all the answers

What is the maximum loan amount for a Christmas Loan?

$4,500 Signup and view all the answers

Home Improvement Loans require collateral.

False Signup and view all the answers

Members can defer the initial payment for the Home Improvement and Celebration Loans for up to _____ days.

90 Signup and view all the answers

What is the maximum term for Home Improvement and Celebration Loans?

60 months Signup and view all the answers

Income from overtime or bonuses is included when calculating a borrower’s total income.

False Signup and view all the answers

A borrower needs to have a minimum FICO credit score of _____ to qualify as an A & B borrower.

700 Signup and view all the answers

What action is required if a borrower's debt-to-income ratio is over 55%?

Credit Committee Approval Signup and view all the answers

What is the formula to calculate bi-weekly income from the last 4 deposits?

Sum last 4 deposits / 4 * 1.25 * 26 / 12 Signup and view all the answers

ACCU loans A paper rate (Best Rate) is ____ and above

720 Signup and view all the answers

What amount does GAP coverage provide towards the purchase of a new vehicle if the replacement vehicle is financed through ACCU?

$1,000 Signup and view all the answers

GAP coverage can only be added at the time of loan closing.

False Signup and view all the answers

What is the cost of GAP coverage?

$449 Signup and view all the answers

The Debt Protection option provides relief from the financial burden of the loan payment in the event of __________.

unexpected life events Signup and view all the answers

Members can add Mechanical Repair Coverage after the loan closing.

True Signup and view all the answers

Mechanical Repair Coverage offers Emergency Travel __________ as a benefit.

Reimbursement Signup and view all the answers

Mechanical Repair Coverage is similar to a traditional car insurance policy.

False Signup and view all the answers

Repairs not covered by Mechanical Repair Coverage include normal __________ services like brake pads or wiper blades.

maintenance Signup and view all the answers

In the event of a total loss, the GAP coverage pays the difference between the amount the auto insurance agrees to pay and the actual amount that was paid for the automobile.

False Signup and view all the answers

Mechanical Repair Coverage offers all of these additional benefits except.

Pays your deductible from accidents that are not your fault Signup and view all the answers

Debt Protection is a voluntary loan-payment protection option that provides relief from the financial burden of the loan payment in the event of an unexpected life events and can cover all of the following, Except:

Voluntary unemployment Signup and view all the answers

A -_ agrees to take responsibility for repaying a loan if the primary borrower misses a payment.

Co-Signer Signup and view all the answers

When using ACCU product offerings, you state to the member that you have a special _______ offer for them.

firm Signup and view all the answers

A firm offer is based on the members ____________________.

Credit Score Signup and view all the answers

A wire request form can be emailed to any email address provided by the member.

False Signup and view all the answers

All wire forms must be complete and ______ before sending to Deposit Operations.

legible Signup and view all the answers

What is the minimum amount for which a manager's approval is required for wire transfer requests?

$1,000.00 Signup and view all the answers

What is the maximum amount for business requests requiring manager approval?

$25,000.00 Signup and view all the answers

What time is the cutoff for processing domestic wire transfers?

3:00 pm Signup and view all the answers

What is one of the documentation requirements for processing a wire request?

Copy of Member's ID Signup and view all the answers

Members have _____ minutes to rescind their wire request after the second set of disclosures is sent.

30 Signup and view all the answers

The member MUST be present in the branch in order to process an international wire.

True Signup and view all the answers

Which of the following is a requirement for staff to act as Notary Public?

Must be commissioned Notary Public in Michigan Signup and view all the answers

What is the name of the software system ACCU uses to create the file for making a member a credit card after closing the credit card application?

Springboard Signup and view all the answers

When using Springboard to instant issue the credit card, change the Number of Plastics to _____. If the card is being mailed by Co-op leave the Number of Plastics as 1.

0 or Zero Signup and view all the answers

When creating a credit card the expiration date should be how many years out?

Four Years Signup and view all the answers

Study Notes

ACCU Mastercard Credit Card

Open-end revolving loan with rewards or non-rewards options
Rewards card earns redeemable points
No application fee
Variable interest rate adjusts monthly with prime rates
Fixed due dates based on statement cycle dates
No collateral required unless applying for a share secured card
Minimum credit limit is 500,maximumlimitis500, maximum limit is 500,maximumlimitis30,000
No balance transfer fee
No reissue fee for lost/stolen cards
Reissue fee applicable for same card number, except for lost/stolen cards
No early payoff penalties, but a late fee of $30 applies
Members can report lost or suspicious activity by calling 1-844-408-2228
Reward points expire after 3 years, with notifications sent 6 months prior

Overdraft Line of Credit (ODLOC)

Revolving credit line covers checking account overdrafts
No application fee
Fixed interest rate
Fixed due date on the 28th of every month
Minimum credit limit is 500,maximumlimitis500, maximum limit is 500,maximumlimitis5,000
No early payoff penalties
Late fee is the greater of $15 or 15% of interest due after 10 days

Signature Loan

Closed-end personal loan secured by the borrower's signature
Unsecured loan available for personal expenses like weddings or vacations
No application fee
Loans range from 12 to 60 months
Fixed interest rate
Members can choose their due date
Minimum loan amount is 500,maximumloanamountis500, maximum loan amount is 500,maximumloanamountis30,000
No early payoff penalty
Late fees apply for payments over 10 days late

Tuition Loan (K-12)

Closed-end loan for financing private school tuition for K-12
Available for any eligible private K-12 school with funds disbursed via Cashier's Check
No application fee
Terms up to 12 months
Fixed interest rate
Minimum loan amount is 1,000,maximumloanamountis1,000, maximum loan amount is 1,000,maximumloanamountis6,000
Members can choose their due date
Late fees applicable after 10 days

Home Improvement and Celebration Loans

Both are unsecured loans aimed at personal financing needs
Home Improvement loans target renovations or furnishings with competitive rates
Celebration Loans assist in financing life events like graduations or weddings
Both loans offer amounts up to $30,000 and terms up to 60 months
Initial payment can be deferred for up to 90 days

General Loan Information

All loans require membership eligibility, with applicants needing to be at least 18 years old
Interest rates are subject to change without prior notice and depend on credit ratings

Christmas Loan

As low as 8.49% APR up to 12 months
Maximum loan amount of $4,500.00
Special expires: December 31, 2024
One Christmas loan per account

Risk Based Pricing for Christmas Loan

720+ credit score: 8.49% APR
719-680 credit score: 9.49% APR
679-640 credit score: 10.49% APR
639-600 credit score: 11.49% APR
599 and below credit score: 12.49% APR

### Income Verification for Christmas Loan

Applicants must demonstrate the ability to pay
Verification of income may be required in the form of a paycheck stub, direct deposit, or written verification from the member's employer
If the applicant cannot demonstrate the ability to repay, a qualified joint applicant who has the means to repay and agrees to joint liability must be obtained
If the member is self-employed, the loan officer or Credit Committee may require W2, signed tax returns, and/or a profit and loss statement
If verification of income is waived, the reasons for the waiver need to be documented on the application

### Risk Based Pricing for Loans

Credit union uses credit-based pricing to offer the best possible rate based on each individual's credit profile
Allows Alliance Catholic Credit Union to service members with less-than-perfect credit by offsetting the risk of potential loan loss

### Loan Application Process

Ensure the borrower's name, address, and employer information matches the application
Overtime or bonus income is not used when calculating income as the funds are not guaranteed
Do NOT add loan notes regarding a member's immigration or citizenship status

### Income Verification

Bi-weekly: Add up the last 4 deposits and then divide by 4. Multiply by 1.25 (averages the taxes) and then multiply by 26. Finally, divide by 12.
Unsecured Loans:
- Existing member (1+ years)
- Debt vs.Income up to 55%
- Credit Committee Approval if over 55%
- Unsecured Loan Amount up to $10,000
- 2+ years on the job (or total of 2 years in the same line of work)
- A & B borrowers, FICO Credit Score 700 and up
- Bankruptcy score 500 or less
- Unsecured ratio 40% or less
- Total Unsecured Debt with ACCU 25% or less
- Borrower(s) cannot be self employed

### Loan Documents

Two (2) most recent paystubs
Tax Returns:
- Business: (2) complete, most recent years business tax returns including all schedules. (2) complete, most recent years personal tax returns including all schedules.
- Personal: if self-employed, (2) complete, most recent years including all schedules.
Other: ___________

### Credit Report Information

Most FICO and VantageScore models range from 300 to 850
Higher scores indicate lower risk to lenders
Industry-specific FICO scores can range from 250 to 900.
Credit scoring models often categorize scores into smaller ranges (e.g., poor, fair, good, excellent).

### Credit Score Range Categories & Implications

Poor (300-579): Difficulty qualifying for loans and credit cards; higher fees and interest rates if qualified.
Fair (580-669): Easier loan and credit card qualification with decent terms, especially at the higher end of the range.
Good (670-739): Qualification for loans and credit cards with low fees and interest rates.
Very Good (740-799): Qualification for most lenders' credit accounts with low advertised interest rates.

Guaranteed Asset Protection (GAP)

GAP coverage protects members from financial loss if their vehicle is stolen or damaged in an accident.
GAP pays the difference between the insurance payout and the actual repair cost.
In the event of a total loss, members receive $1,000 towards a new vehicle if financed through ACCU.
GAP can be added at any time, as long as the loan-to-value (LTV) is 100%.
The cost of GAP is $449 and can be added to the loan or purchased separately.
GAP can be cancelled within 90 days of loan closing for a full refund.
GAP protects all vehicles and recreational vehicles except classic autos.

CUNA Debt Protection

Debt protection provides financial relief for loan payments in case of unexpected life events like unemployment, disability, or death.
It helps members manage finances and protects loved ones from loan responsibility in case of death.
Debt protection can be added to loans for credit cards, home equity, vehicles, and recreational vehicles.
The fee is a percentage of the loan balance and can be added after loan closing.
Debt protection can be cancelled at any time with a written request.

Mechanical Repair Coverage (MRC)

MRC is similar to an extended warranty, providing coverage for vehicle repairs.
The cost is based on the vehicle's year and anticipated mileage.
MRC offers additional benefits, like add-on mileage coverage, rental coverage, roadside assistance, emergency travel reimbursement, and transferable coverage.
Members can request an MRC quote online with their CUNA login.
MRC fees vary based on the vehicle's make and model year.
MRC can be added after loan closing, but members will have to pay out-of-pocket.
Members can cancel MRC within 30 days of closing and receive a refund by completing a “30-day free look form”.
Coverage varies depending on the selected package.
MRC does not cover normal maintenance like batteries, filters, belts, hoses, wiper blades, brake pads, rotors, or drums.

Wire Transfers

Members can request wire transfers in person, by phone, or by email
Phone Requests:
- Representatives will verify the member’s identity
- Representatives will send a Wire Request Form to the member’s email address on file. They cannot send to an alternate email.
- Representatives will inform the member to send back the form with a copy of their ID.
Email Requests: Verify the member’s signature against their file. If no valid signature is found, get approval from a manager.
- Representatives will verify that the notary listed on the form is active within the county listed if a notary is required.
Manager’s Approval: Required for requests over 1,000.00formembersand1,000.00 for members and 1,000.00formembersand25,000.00 for businesses.
- Manager will verify the process, signature, member identity, and place a follow-up call to the member from a number on file.
- Manager will complete the Wire Checklist and send the completed checklist, copy of ID, and wire form to deposit operations.
Cutoff Times: Domestic wires are accepted until 3:00 pm Monday-Friday. International wires are accepted until 1:00 pm Monday-Friday.
- Requests received after cutoff times will be held until the next business day.
Branch Requests: The representative will verify the member’s identity, obtain a copy of their ID, assist the member with the Wire Transfer Request form, ensure the form is signed and dated, and sign and complete the CU Employee information at the bottom of the form.
- Representative will email the completed wire request form, Wire Checklist, and copy of their ID to Deposit Operations with the subject line "Wire [member’s name]".
- International Wire Requests: Must be made in-person so members receive disclosure.
- Members have 30 minutes from receipt of disclosures to rescind the wire request. If they wish to stop the request, contact Deposit Operations at ext. 4930.
- Members must write "Stop Wire Transfer" on the Wire Transfer Request Form and sign and date it.
Documentation: Completed and Signed Wire Request Form, Copy of Member’s ID, Wire Checklist, signed Notary Verification when applicable, and additional documents.
Retail Responsibilities: Validate member’s information and ensure all forms are complete and legible.

Credit Card Issuance

For instant issuance, click on “Set a Custom Expiration Date” to set the expiration date. The month/year should be the same as the card creation date plus 4 years. For example, if a card is created on December 11, 2018, the expiration date will be 12/22.
For phone or email requests, a notarized signature is required.
Known members of the credit union can have the notary requirement waived with approval from the VP Deposit Operations, VP Retail, or a member of the Executive Team.
To Set Up A Credit Card:
- Enter the interest rate code, the member’s base account number, card type, and application branch number.
- Enter the credit limit, credit bureau report code, credit score, and credit life insurance flag.
- Enter the Symitar 13-digit MICR number for saving and checking account numbers.
- Select EN-American English for the language field. Leave all other fields as defaulted.
- Click "Create Account".
- Springboard will display a screen with the new card number and information.
- Copy and paste the card number into CardWizard Web to create the credit card plastic if needed.

Notary Public

Requirements: Staff must be commissioned Notary Public with the State of Michigan.
Must verify the identity of the individual signing, the individual must sign in the notary’s presence, and must complete a notary journal log.
Cannot perform notarial acts for an individual who is related to the member, but can perform for close friends.
Keep notary seal, journal log, and notary commission card in a secure place.
Must keep the notary journal log for a minimum of five years after the notary’s commission expires.

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Description

This quiz provides insights into various savings accounts designed for different age groups, from children to young adults. Learn about features, benefits, and management opportunities associated with the Aspire and Angel Saving Accounts, as well as Certificates of Deposit. Test your knowledge on financial management tailored for youth.