NCUA Guarantees New 2-Year Community Investment Fund CDs |
ALEXANDRIA, Va. (5/21/09)—Shareholders in the Community Investment Fund (CIF) now have the opportunity to triple their dividends while securing a full federal guarantee for the next two years. |
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 The National Credit Union Administration (NCUA) will guarantee all principal and quarterly fixed-rate dividend payments on new two-year certificates of deposit (CDs) in CIF. |
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 | Earn Dividends While Donating to Charity | | | CIF allows members of corporate credit unions to earn dividends while donating to credit union charitable organizations – without creating an expense on the donors’ balance sheets. |
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| Cut Costs of Corporate Stabilization | | | What’s more, new deposits in CIF will help reduce all credit unions’ expenses for NCUA’s Corporate Stabilization Program. |
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Support Critical Programs & Grants |  “We commend NCUA for taking action to offer credit union investors an attractive new option to earn federally guaranteed dividends while donating to credit union charities,” said National Credit Union Foundation Deputy Director Steve Bosack.
“Increasing deposits in the Community Investment Fund will provide critically needed programs and grants to more credit union members across America.” |
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| State Programs & Grants
NCUF grants the other half of CIF donations to each investor’s state credit union foundation or league.
State credit union organizations use their CIF grants for a wide variety of charitable activities:
Financial Education
Training
Credit Union Membership Outreach
Small Credit Union Development
Affordable Housing
Disaster Relief
and much more... |
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Join the Award-Winning Community Investment Fund |  CIF provides about two-thirds of revenues for NCUF and many state credit union foundations.
Recognizing CIF’s unique structure and widespread impact, the Association of Fundraising Professionals honored CIF with its Award for Fundraising Excellence.
The federally guaranteed two-year CD is the first new national product designed for CIF since 2003. |
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| CIF Share Accounts Are Also Guaranteed | | For investors with tight liquidity, CIF is also available in special S-115 share accounts at corporate credit unions.
NCUA will guarantee all principal and variable-rate dividend payments in CIF share accounts throughout the course of NCUA’s rolling guarantee program. |
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| Shareholders: Triple Your CIF Dividends | | | Taking advantage of today’s steep yield curve, share account holders can more than triple their dividends by transferring to fixed-rate CIF CDs (C-40 accounts at corporate credit unions). |
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| 90-Day Notice Waived When Transferring to CIF CDs | | Normally, CIF share account holders are required to give 90 days notice before withdrawing.
But NCUA has authorized corporate credit unions to waive the 90-day notice requirement when share account holders transfer directly to CIF CDs. |
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| Longer-Term CIF Options Still Available | | The other two CIF options are three-year CDs and five-year CDs.
Both offer higher dividends than the new federally guaranteed two-year CIF CDs because their longer terms stretch beyond NCUA’s current guarantee program. |
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 Josie Collins
NCUF Resource Development & Donor Relations Director
jcollins@ncuf.coop
800-356-9655, extension 4397 |
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About the National Credit Union Foundation: |  NCUF is the primary national charitable and fundraising organization for America’s credit unions.
Since 1980, NCUF has provided tens of millions of dollars worth of grants and programs supporting its mission to “promote and improve consumers’ financial independence through credit unions.” |
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