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Vote “YES” to support the MACCU/River Valley Partnership

On August 17th, an official notice and ballot were mailed to each member of MACCU outlining the details of our proposed partnership with River Valley Credit Union. We will be holding several informational sessions to provide an overview of the merger. If you would like to register, please visit our Partnership page. We hope that we can count on your support to better the future of both credit unions!

Announcing Our Exciting Partnership Opportunity

We have some very exciting news to announce!  For the past several months, we have been evaluating and discussing the possibility of strategically joining forces with another small credit union in Vermont.  After careful research and consideration, your Board of Directors is in unanimous support of partnering with River Valley Credit Union in Brattleboro, Vermont.  We believe that this merger will strengthen the financial position of the credit union and help to ensure long-term sustainability.  This cooperative merger can only happen if our members vote in favor of it, so we hope that we can count on your support.  We will keep you updated as we move forward with this proposal and will be available to answer any questions that might arise.

For more information about this proposed merger, please see our Membership Letter and Merger Proposal Q&A.

Credit Unions vs Banks

Top 5 Reasons Why Credit Unions are better than Banks

Are you one of those people who walk past a credit union in your community without looking twice? Then you don’t know what you are missing out on when it comes to financial matters. One of the main reasons why some people are not in credit unions is because they don’t know how they operate and what they entail. Credit unions are non-profit organizations with an objective of serving their members rather than making profits from service provision. They offer similar financial services compared to banks such as loans, checking and savings accounts, credit cards, and mortgages.

Here are five reasons why you should choose a credit union over a bank:

 

  • Motives

 

The main reason why credit unions exist is to serve their members rather than accomplishing the goals of the institution. Members come first in credit unions then the rest follows. On the other hand, banks are formed with the aim of making profits, and they’ll do whatever it takes to meet their profit margins.

 

  • Better interest rates

 

Credit unions have lower interest rates on loans, credit cards, and even mortgages. Besides that, most credit unions are less strict when it comes to loan eligibility, and they are not selective of one’s source of income. Savings accounts, CDs, and bonds in credit unions also yield returns compared to having the same in banks.

 

  • Structure

 

For those who are not members of any credit union, you might not be aware that credit unions belong to members and they are responsible for their operations. Once you’ve made your first deposit, you are granted voting rights, and any surplus income will be reimbursed as dividends. Being a member means that you get financial services at lower rates and participate in decision making.

 

  • Fee-free accounts

 

A majority of banks require account holders to maintain a minimum balance which is not the case with credit unions. One of the main reasons why most people are drawn to credit unions is because they offer free checking accounts and no minimum balance requirements to cut down any extra fees.

 

  • Relationship building is valued

 

Let’s face it, credit unions value members who have been with long enough and they tend to be more lenient when such members want to borrow funds. Besides enjoying lower interest rates, when applying for loans, the terms and conditions are more flexible for such members provided their credit score is high. In case you haven’t joined a credit union, take the time to visit one in your local community; you’ll be surprised to see a big difference between them and banks.

Why You Should Have an IRA!

3 Reasons you should have an IRA (Individual Retirement Account)

Do you have an IRA account? Well, consider getting one soon. An IRA can come in the form of traditional IRA, Roth IRA or Rollover IRA. Financial institutions set up these accounts to encourage individuals to save for their retirement effectively on a tax-free basis. Regardless of the type of IRA you choose, you can rest assured that your money will potentially grow faster than it would in other taxable accounts.

Why should I have an IRA (Individual Retirement Account)?

1.     Tax advantages

Having an IRA account can have so many advantages for those planning their retirement. Making contributions to a traditional IRA ensures that your money grows tax-deferred until the day you withdraw it after retirement. Alternatively, your savings can experience tax-free growth if you contribute to your Roth IRA devotedly. You have every reason to smile knowing that no one will tax whatever growth your investment attracts. Saving through IRAs is, without doubt, the most convenient way of generating tax-free income for your heirs. Interestingly; even in your death, your beneficiaries will not experience any taxation complications after inheriting your proceeds.

2.     IRA account holders enjoy penalty-free withdrawals of their contributions

Another incredible reason to have an IRA is that holders enjoy Penalty-free withdrawals of contributions even before their retirement particularly if they contribute to a Roth IRA. Nevertheless, Traditional IRA/401(K) account holders are required to pay a penalty of up to 10% if they decide to withdraw their contributions before they are 591/2 years of age. Roth IRA account holders can withdraw whatever they’ve actually contributed and sell their investments (accrued market returns) penalty-free provided they are not yet 59 ½.

3.     Flexible savings or contributions

Enjoy the flexibility of distributions by investing in a Roth IRA account. Apart from attracting zero-penalties or taxes, Roth IRA account holders can make their contributions at their own convenience provided they don’t default. Young people should grab every available opportunity to invest their money in IRAs.Why? Well, as a young adult, you are allowed to claim your money back after acquiring a reasonable rate of return on your investment. On top of that, you can manage to pay yourself and contribute to your retirement fund at the same time without unnecessary complications.

The bottom-line: There are a TON of reasons to own an IRA. All you have to do is contact MACCU, make your contributions, and see your investment returns grow. Do the right thing today to enjoy your tomorrow after retirement.