CIF Flow Chart


Click the headline above to see how dividends flow through CIF to ultimately benefit credit union members.
2-Year CD Flyer

Ask for the NCUF Guaranteed 2-Year CIF CD!


All principal and quarterly fixed-rate dividend payments are guaranteed by credit unions' federal regulator and insurer.

Available only through the Traditional CIF with the Corporate Credit Unions.

Click here for a flyer on the NCUA-Guaranteed 2-Year CIF CD (PDF) to post on websites and sent to others.
Click to see how the NCUA-Guaranteed 2-Year CIF CD works!

The Facts About the Traditional CIF


Purpose

The Traditional Community Investment Fund provides funds for national and state level development initiatives and a stable source of funding for Foundation grantmaking and endowment growth. CIF empowers credit unions to make a greater cooperative impact in their communities.

Method

Participating credit unions invest a suggested amount (see Suggested Investment Levels below) into a
special account at a participating corporate credit union. The corporate credit union reinvests those funds into a designated CIF account at US Central. These investments help reduce the cost to credit unions of NCUA's Corporate Stablization program.

Terms

Participating credit unions should review the terms provided by their corporate credit union for specific details and terms of their accounts.

The following terms reflect the general parameters for the accounts that have been established under the CIF program.

90-Day Notice Account

Once funds are placed in the 90-day notice account, a participating credit union must give 90 days notice before withdrawals can be made. Note: NCUA has authorized corporate credit unions to waive the 90-day notice requirement when the share account holders transfer directly to CIF CDs. This variable rate account is re-priced monthly and is intended to pay a total dividend comparable to short-term investments with maturities of 60 to 120 days.
Distribution: A variable monthly dividend will be split 50/50 between the credit union and the National Credit Union Foundation.

If the dividend rate is over 4%, NCUF's portion is capped at 2%.

Certificates of Deposit

Investors can choose a fixed-rate certificate of deposit with maturity established at the time of issuance of two, three, or five years.

All principal and quarterly dividend payments from the two-year CIF CD are fully guaranteed by the National Credit Union Administration.


Like any fixed-rate CD, once a CIF CD is opened, a participating credit union is expected to keep the funds in the account until maturity. Fixed-rate CDs are designed to pay a total aggregate dividend rate comparable with similar fixed-rate term investments. This option enables credit unions to more precisely determine the extent of their investment in the CIF program.
Distribution: CD dividends are split 50/50 between the credit union and the National Credit Union Foundation.

If the dividend rate is over 4%, NCUF's portion is capped at 2%.

Suggested Investment Levels

1) Chairman’s Club: Investments of 0.25% of assets, or $2 million +.

2) Leadership Circle: Investments of 0.1% of assets, or $1 million.

3) Investors' Circle: Investments of less than 0.1% of assets.

National Donations at Work

The National Credit Union Foundation uses half of its portion of the CIF dividends to support national programs and grants that benefit credit unions and their members.

Click Foundation Programs to see your dollars at work.

State and Local Benefits

National Credit Union Foundation grants the other half of its CIF revenue to each investor's state credit union foundations and leagues.

State foundations and leagues use CIF grants to meet at least one of the following objectives:
  • Financial Education
  • Credit Union Development
  • Credit Union Service Extensions Affordable Housing
  • Community Outreach
  • Scholarships
  • Internships
  • Disaster Relief
  • Many other charitable projects to benefit credit unions and consumers, consistent with NCUF's mission.