In Your

In Your Interest Service Credit Union Donates $30,000 to Military Families for Holidays Service Credit Union serves many communities in the United States and Europe, and military families represent a large segment of our membership here and abroad. These families face unique financial challenges to living a military Gordon Simmons, President/CEO of Service Credit Union presents Colonel life, and often have a loved one deployed. Richard Martell, Wing Commander of the 157 ARW, with gift cards. National Guard members, for example, may union’s 15 branches serve in Germany as leave a higher paying civilian job to serve well as at Pease Air Base, home of the 157th for less income when deployed. Also, with Refueling Wing of the National Guard in a parent deployed, many households need New Hampshire. to accommodate additional expenses, such Gordon Simmons, President/CEO of as added childcare costs. Some parents find themselves missing work or even losing their Service Credit Union presented 20 gift cards to Colonel Richard Martell, Wing jobs because they need to fill in the parCommander of the 157th ARW. Richard enting role of their deployed partner. The Tolle, Senior Vice President of Overseas holiday season brings its own added expenses, which can be especially difficult for Operations and local Service Credit Union our service men and women in this situation. Branch Managers presented 375 cards to senior military leaders for distribution Service Credit Union made many throughout the holiday season. A total of contributions over the holiday season 395 VISA® gift cards were donated to help (please see our Community Giving families buy food and gifts. section for more information). Addressing “It’s a unique circumstance that these our military members specifically, gift cards families are facing financial challenges while valued at $30,000 were donated to families already giving so much for their country,” needing holiday assistance across the 14 said Gordon Simmons, President/CEO. “We Army and Air Force bases where the credit appreciate their sacrifices and hope the gift cards made their purchasing for family celebrations a little easier.” “We have been serving the needs of our military members for fifty years,” continues Gordon Simmons, President/CEO. “It’s our responsibility to help them when we can and our great pleasure to give these families the ability to provide the holiday dinner and gifts we all hope to have over the holidays.” Msgt. Bradley Robson and Spangdalem Branch Manager th Winter 2008 IN THIS ISSUE Page 2 A Message from the President The Credit Union Difference Page 3 Credit Cards - Switch and Save! New Website Convenience Important Member Notice Page 4 Retire When You Want Employees of the Quarter Military Saves Page 5 Member Specials Community Giving Page 6 Branches & Contact Points Statement of Condition Tye Jacobson. Service Credit Union servicecu.org • 800.936.7730 1 A Message from the President At Service Credit Union, our mission is to continually bring new convenience and service enhancements to our members. This past year we added new branch locations worldwide. In New Hampshire, we opened our fifth new branch within Wal-Mart stores in Rochester. This allows us to offer 7-day banking and expanded weekday hours. Two more locations are planned. In Germany, we opened a new branch at Panzer Kaserne Stuttgart and also will be adding two shared branching kiosks, one in Ramstein and one at the Landstuhl 2nd General Hospital, where we also provide support for the injured troops and their families each year. Construction has also begun on two new sites in Salem and Lebanon New Hampshire. We recently introduced a number of services to enhance the member experience, including an enhanced voice-activated Call 24 Service in both English and Spanish languages. The German language will be added in early 2008. Service Credit Union also introduced our new servicecu.org website, where members select whether they are civilian or military and are mapped directly into a customized section with offers, education, and events. Plus, the site is now available in English and Spanish, with a simple member selection key. We are pleased to offer services in the languages in which members feel most comfortable transacting their financial business. Your credit union now offers up to 10 free ATM transactions, excluding surcharges by other ATM owners, at non-Service Credit union ATMs worldwide with a direct deposit to your Service Plus checking account, plus national real estate lending and a free member identity theft service for all members. Service Credit Union continues to increase community giving efforts and we are most honored to have helped so many, particularly around the holidays. This past season, we collected over 1,300 pounds of food items at our branches in New England to donate to the New Hampshire Food Bank, whose shelves were in need of replenishment. Service Credit Union added a $30,000 check to help the Food Bank supply even more, much-needed, food items. Service Credit Union also delivered 100 turkeys for Thanksgiving meals in New England, collected children’s toys for the “Toys for Tots” program and the raised funds for the Make-A-Wish program to help terminally ill children in our communities. This holiday, we donated over $30,000 in holiday gift cards to troops stationed at Pease Air Force Base, where we first began operations in 1957 and across 14 Army and Air Force bases in Germany where we serve our men and women in uniform. Many are families with a soldier deployed to Iraq or Afghanistan. I wish to personally thank you, our valued member, for your loyalty and trust this past year. We will continue our work in 2008 and beyond to ensure that Service Credit Union remains your primary choice for financial services. Thank you, Gordon A. Simmons President / CEO The Credit Union Difference Spread the Word Did you know that according to a 2002 study, America's credit unions saved their members nationwide a total of $6.3 billion* that year? Credit unions save members money by charging lower interest rates on loans and paying higher interest or dividends on deposit accounts and investments. They also charge fewer and lower fees. So the more you use our credit union, the more you save. Consider this: Financing a $25,000 new car for 60 months at Service Credit Union would save you $237.48 per year in interest over the amount paid at most banks.** And Service Credit Union pays 2.00% higher interest on money market accounts than the average bank in the state does. Most banks nationwide (89%)*** charge a monthly account-maintenance fee for interest-bearing checking and savings accounts that go below a certain minimum balance. The main reason Service Credit Union can offer a better value is that we're a member-owned, not-for-profit cooperative. We exist to meet members' needs, not to make a profit and maximize the wealth of outside shareholders, as banks do. When you look at credit unions vs. banks, the difference matters—it saves you money. *Source: CUNA Research & Policy White Paper: The Benefits of Credit Union Membership **Based on SCU’s APR of 5.24% APR compared to TD Banknorth’s rate of 6.94% APR as of 11/21/07. ***The rate and fee data cited are based on national averages and were collected by CUNA Research Services, Datatrac/Informa, American Banker's Association, cardweb.com, and CardData. 2 Use SCU Credit Cards & Consolidate Debt Credit Cards: Switch and Save Did you make a New Year’s resolution to save money and reduce debt? It’s a good time to examine your credit relationships and look for the card that works best for you. Do you know what would happen if you went over the credit limit on one of your credit cards, or if you made a late payment? If you got the card from a large national card issuer, chances are you'd be charged high penalty fees, and you might find your interest rate hiked to more than 30%. With a Service Credit Union credit card you can consolidate debt and know you have a great rate, no hidden fees and an interest rate that won’t change on you. Service Credit Union cards are also instantly issued, so if you are near a branch you can get a decision and a card on the spot. If you're not sure about the fees and penalties for your credit card, ask your card issuer. The terms may have changed since you opened the account, and you may not have read the notification, which generally accompanies your account statement. You should know: • Your interest rate. • Whether there are different rates for balance transfers, cash advances, and purchases. • The order in which payments apply to different types of transactions--some banks pay off low interest-rate balances first so the high-rate ones stay on your account longer. • Whether the rate could increase to a higher penalty rate, and under what circumstances (such as a late payment--on this card or any other card). • Annual fee, late fee, and overlimit fee amounts, and when they're charged. • What other fees are charged, and when. • The grace period, or number of days from the billing date you may pay in full without incurring finance charges. If you're not satisfied with the answers, maybe it's time to shop for a better card. And be sure to ask these questions up front. In most cases, you'll find credit union credit cards are the most consumer friendly. Stop by Service Credit Union to get a better deal on a credit card and you can walk out with your new card in your wallet. This spring, take advantage of our low fixed rates on VISA® cards to consolidate debt. Transferring balances from other cards with higher interest rates will save you money and give you one low monthly payment. Apply online at www.servicecu.org or call to speak to a Member Service Representative 24/7 at 800.936.7730 (US) or 00800.4728.2000 (International). New Website Brings Convenience to a New Level Service Credit Union recently unveiled the new servicecu.org featuring streamlined navigation and enhanced security. Members may now choose to view the site in English, Spanish or German. “The translation of the website is a benchmark for Service Credit Union, and is in line with our global vision and mission,” says Mr. Simmons, Service Credit Union President/CEO. “As a credit union with a mobile membership, it is vital that we offer online banking that is dynamic, streamlined, and secure.” continues Gordon Simmons, President/CEO. For thousands of members, online banking is a part of daily life. With more than 400,000 monthly visitors, Service Credit Union’s online presence is an important member service channel. Service Credit Union has branches throughout New England and Germany, serving both civilians and U.S. Armed Services members. The new site asks users to choose whether they want to enter the site as a civilian or military member. It then provides financial resources of specific interest to the user. For example, if a member clicks on the military link on servicecu.org, they will find information about financial readiness for deployment, relocation resources, and special military products, services and rates. Enhanced security, technology and architecture make the site faster to use. The entire site is now searchable by keyword, topic (con't page 6) Important Member Notice on Credit Life and Disability The rates under MEMBER'S CHOICE™ Credit Life and Credit Disability Insurance coverage on all insured loans, including credit cards, will be increased effective February 1, 2008. This rate adjustment is the result of requiring additional premium to pay on the increasing number of claims that are occurring. The increase in premium may result in either a higher last payment, or may extend the duration of a loan. The new Credit Disability Insurance rate is $.178 per $100. The new Credit Life Insurance rate per $100 of outstanding loan balance is $.038 for the Single Insured Plan and $.059 for the Joint Insured Plan. Thank you and we look forward to continuing to serve your needs. MEMBER’S CHOICE™ credit life and credit disability insurance are underwritten by CUNA Mutual Insurance Society. 3 Will You Be Able To Retire When You Want To? Factors to Consider as You Plan Your Savings for Retirement When do you expect to retire? Just as importantly, what standard of living do you imagine having when you do? Unfortunately, for millions of men and women starting to map out their retirement dreams, expectations may be on a collision course with reality. employer plans are reducing or freezing contributions. The result could be a dramatic shortfall in terms of retirement benefits. The EBRI has a simple recommendation: “Saving an additional 5% of compensation for the remainder of one’s career” may be all that is needed. If increasing your savings still isn’t enough, you may have to delay your retirement or work part-time in retirement. Health and health care costs are major variables in retirement security. People without coverage or who pay for coverage out of pocket are least likely to be able to retire. Plus, Medicare does not cover all medical costs in retirement. Finally, the risk of a long-term illness leading to confinement in a nursing home can wipe out retirement savings. Factor in the cost of Medicare Supplement coverage when calculating your retirement costs. Also, consider purchasing long-term care insurance to help meet nursing home expenses. Employee of the Quarter Your projected longevity is both a blessing and a liability. One of the greatest threats to retirement security has become the danger of living too long - outliving resources. This makes it difficult to estimate how big your retirement nest egg should be. Consider that your retirement income may need to last for decades. Conservative planning means planning your income beyond your life expectancy. Determine how much income you can safely withdraw from your investment portfolio without having it run out too quickly. Bobbie Labbie Rochester Branch Inflation can devastate your plan if you fail to consider it. Even at low levels, inflation can undermine the purchasing power of your money over time. Factor inflation into your retirement model. Consider allocating some of your retirement money into income producing assets that are designed to keep up with inflation. Lifetime payout annuities with inflation adjustments are one example. Get details. Do your homework. Meet with a Financial Advisor at your financial institution who can help you analyze your needs. Get started making sure that your retirement expectations and your realities blend successfully for a long and financially comfortable retirement. 1 “Many Americans’ Retirement Hopes Are Filled With Holes,” EBRI Press Release, April 4, 2006. 2“Social Security Basic Facts,” Social Security Administration,February 2006 Jenny White Rochester Branch Social Security is a wild card. The full retirement age continues to rise, and with Baby Boomers ready to begin tapping into the system in a few years, there is talk about increasing it even further. Plus, the average monthly benefit for a retired worker is just a shade over $1,000 a month, or a little more than $12,000 a year. As it is, about two thirds of all retirees receive 50% or more of their retirement income from Social Security.2 Treat Social Security as a bonus, found money, not as your primary source of income in retirement. Instead, build private resources with IRAs, investments and annuities. Contact Jeff Brown our MEMBERS Financial Services representative today at jeff.brown@cunamutual.com for help with decisions that can affect your financial future. For more information call 800.936.7730 ext. 8392. Jeffrey Brown joined MEMBERS Financial Services in 2006 and is a Financial Advisor in the Portsmouth, NH office of Service Credit Union. Jeff graduated from the University of Southern New Hampshire with a BS in Business Management and an MBA. With over 20 years of business and financial services experience, Jeff assists members in developing strategies to achieve their financial goals. This article is not intended as legal or tax advice. State tax laws vary. Please consult a professional tax advisor. 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. Military Saves Week is coming this February to Service Credit Union You don’t have to be rich to build wealth. Military members from all ranks and walks of life who serve America are serving their futures by saving money. As members of Military Saves, they are paying off their debts, and saving to reach their financial goals. Military Saves Week is February 24 to March 2, 2008. Individuals and families can join by registering their savings or debt reduction goal. When you join, you’ll receive an email reminding you of your savings plan, and the American Saver newsletter (by email) four times a year. From time to time you can receive emails with news of a free seminar offered by the DoD or one of the military services, or you may be invited to enter a contest or submit your story for the newsletter or a special event. Military Saves won’t send you more than one email per month (average), and you’ll always have the chance to unsubscribe. Service Credit Union will be inviting members to participate in our program again this year. In 2006 we had over 400 members sign up, taking advantage of our Military Saves promotional certificate of deposit and making a commitment to build wealth, not debt. Look for more information on Military Saves in February on our website www.servicecu.org. Many people are unprepared financially for retirement, reports the Employee Benefit Research Institute. According to the EBRI’s 2006 Retirement Confidence Survey, most Americans expect to enjoy a comfortable retirement. However, “more than two-thirds (68%) of current workers say they and their spouses have accumulated less than $50,000 in retirement savings.1 Even if that money generated an unlikely 10% return, that would be only $5,000 a year. Plus, many 4 Community Giving Member Specials Signature Loans Personalized for You. You won't believe how quick and easy it is to get a personal loan. Your signature is all the security you need for a low-cost loan that can be used for anything you want...to take a vacation, help finance home heating bills, or a new home sound system. A low rate, quick approvals and terrific terms make our personal loans the way to go. Plus, we can provide you with up to $20,000 and a repayment plan that can fit into any budget. Apply online now. For on the spot approval call us 24-hours a day at 1.800.936.7730. Holiday giving is a tradition at Service Credit Union. This year the credit union worked with several organizations to make the holidays a little brighter for our communities. Both Panzer and Patch branch offices in Stuttgart participated in this year’s Angel Tree Program through MWR’s Army Community Services. Trees held Angel ornaments printed with the name and age of a child. Members dropped off toys matched to “Angels” in their community. Gordon Simmons, President/CEO of Service Credit Union with Colonel Richard Martell, Wing Commander of the 157th ARW. Bamberg Branch Manager Modesto Polintan, Garrison Commander LTC Gary Rosenberg, and Garrison CSM Prince. Sherrell Leatherman and Angela McNutt, Stuttgart Branch Instantly Issued VISA® Credit Cards That Fit Your Way of Life! Whether you want bonus points, cash back or simply a low interest rate credit card, Service Credit Union can provide you with exactly what you need. With no annual or hidden fees a VISA from Service Credit Union is the clear advantage. Save More. Earn More. A Money Market Savings Account is flexible, convenient, and easy to access! Money Market Savings Accounts from Service Credit Union enable you to earn dividends on your savings. And as your savings increase, you'll earn even more. For more information or to open an account call us 24-hours a day at 1.800.936.7730 or visit servicecu.org In November and December nearly 400 gift cards were donated to families of military members overseas and in the US who requested assistance with meals and other holiday expenses. Please see our cover story for complete information. The Grafenwoehr and Vilseck Branch offices collaborated on a toy drive for the needy children in their local community. The branches requested donations of new and unwrapped toys and provided drop off boxes. Toys were presented to the 1st Sgt in conjunction with the Holiday Gift Card program. Other toy drives took place in Hohenfels and Vogelweh, where toys were collected for the Kaiserslautern Army Community Services. Heidelberg and Mannheim branch offices teamed up with the USO to provide small items to be placed inside “Stockings.” These stockings were distributed by the USO to active duty soldiers who were scheduled holiday shifts. The Ramstein branch office and the USO collaborated on collecting stocking stuffers for soldiers deploying over the holidays. The USO Kaiserslautern provided the Ramstein branch office with a drop box for the collection of candy, playing cards, gum, toothbrushes, and more. Around 2500 stockings were distributed at the KMC Terminal by volunteers to all deploying active duty personnel. Just before the holiday season began, the credit union presented the New Hampshire chapters of the Air Force Sergeants Association (AFSA) and the Air Force Association (AFA) a donation for the NH Air Force Memorial Fund. The credit union launched the campaign with the first donation in February. The AFSA and AFA are building the memorial at the New Hampshire Veterans Cemetery in Boscowan, NH to honor all New Hampshire men and women who have served in the United States Air Force. A ground breaking ceremony for the memorial took place on Veterans Day. Staff of Panzer Branch New and Improved Call 24 Speaks Your Language. Service Credit Union’s Call 24 is now voice activated and available in both English and Spanish languages. German is soon to come! Managing your finances over the phone has never been so easy! Call 800.962.6385 today! Please listen carefully as our prompts have changed. In Portsmouth New Hampshire, where Service Credit Union’s corporate headquarters are located, holiday donations were a priority also. The holidays were celebrated at Pease Air Base in Portsmouth with the 2007 Year in Review & Awards Dinner. Service Credit Union sponsored the dinner event while the children of the Air National Guard Base were treated to a Winter Carnival in an adjacent hanger. Gordon Simmons, President/CEO of Service Credit Union was honored by Colonel Richard Martell, Wing Commander of the 157th ARW, in front of thousands of soldiers and family members, for the credit union’s ongoing support and commitment to military members. A group of Dignitaries including United States Senator John Sununu, NH Governor John Lynch, and Edward Murphy, Executive Vice President, Service Credit Union, break ground for the New Hampshire Air Force Memorial. on Veteran's Day. Also this winter, Service Credit Union made a contribution to the Martin Luther King Jr. National Memorial Project in Washington D.C, furthering the foundation’s goal of $100 Million Dollars to complete the project, and making the credit union a Founding Sponsor. The memorial honoring Dr. Martin Luther King, Jr. will be built on the National Mall in Washington, D.C., adjacent to the F.D.R. Memorial. The Memorial is scheduled to be completed in 2008. For more information visit www.buildthedream.org. 5 Directors & Officers: Clifford Taylor, Chairman; David Van Rossum,Vice-Chairman; Gordon A. Simmons, Treasurer/Secretary; Patrick Harrigan; Barbara Roberge; David Hanchett (A) Supervisory Committee: David Van Rossum, Chairman; James Fishbein; Joanne Whiting Credit Committee: Ron Smith, Chairman; Raymond Drapeau; Donald Houldsworth; James Walters , ws s e g N vent ! in c it nd E ion Ex o a o m U n fr edit I nf Cr e v ic r Se (Website con't from page 3) or phrase, with results presented in a list of relevant links and brief summary. Members searching for a branch or ATM will find the search not only lists locations, but also provides a Google-like map. So, whether you are searching for a nearby ATM, loan rates, or employment at Service Credit Union, you will find our new search feature extremely useful. Service Credit Union celebrated its 50th Anniversary in 2007. The new site reflects the vision for the future. We invite members and visitors to visit us online at servicecu.org and to learn more about the benefits of Service Credit Union membership. 2010 Lafayette Road Portsmouth, NH 03801 Did You Know? You can access your Service Credit Union account at more than 4,000 branch locations worldwide? See the map below for the number of locations in your state. 334 N/A 159 33 14 29 N/A 19 N/A 51 9 9 N/A 22 76 93 71 22 43 180 311 274 51 3 61 141 7 152 6 86 5 22 54 3 374 25 45 214 28 250 30 35 15 24 81 76 81 592 40 20 Financial Education Online Seminars Service Credit Union is dedicated to helping our members achieve financial security and independence. Toward this end, we provide financial education seminars on topics such as money management, tax planning, investments and home buying. For a current list of upcoming webinars, please visit us at: http://www.servicecu.org/edu_seminar.asp Access Points Contact Center Real Estate Lending Call 24 Telephone Teller 800.936.7730 800.619.6575 800.962.6385 Statement of Condition (as of 11/30/07) Members 108,695 $ In Thousands 1,200,000 Loans 1,000,000 4,000 additional branches available worldwide. Visit servicecu.org to learn more. Credit union representatives available 24/7 at 800.936.7730. Deposits 800,000 600,000 400,000 200,000 0 Assets Loans Deposits Assets 2005 $669,537,851 $739,134,669 $1,019,510,343 2005 2006 $722,616,449 $794,089,347 $1,081,330,616 2006 2007 $719,212,903 $794,338,446 $1,085,506,650 2007 6