GHCU is thrilled to announce two brand-new certificates! Lower opening balances make it easier for everyone to start their savings programs and earn dividends on their investments.

Choice Certificate

• Minimum opening balance of only $500
• You may make additional deposits at any time over the term of the certificate
• 6-month term
• See our Rates page for rate information
• Not eligible for PurplePoints rate increase

Youth Certificate (must be 17 or younger at opening to be eligible)

• $100 minimum opening balance
• You may make additional deposits at any time over the term of the certificate
• 24-month term
• See our Rates page for rate information
• Not eligible for PurplePoints rate increase

Start with a lower minimum opening balance, add cash as you go, and work your way towards a financially stable future. The Youth certificate is a great way for kids to earn dividends and learn the savings habit.

To open your certificate, stop by a GHCU branch or give us a call at 800-562-5515 or 206-298-9394.

Filed under: GHCU News, Your Money/Your Kids by Shannon
No Comments »

Can you put a firewall around your mailbox? Probably not, but there are some steps you can take to reduce your risk of identity theft. This month our experts take on Identity Theft and answer the question, “What can I do to protect myself?”

From Matthew Hensley, Branch Sales Manager at our Northgate branch:

1. Protect your Social Security Number (SSN)–Don’t carry your card in your wallet and never write it down on a check or other negotiable instruments. Give your SSN only when absolutely necessary; if at all possible, use other identifiers. If your SSN is used on your State’s Driver’s License or Medical Insurance Card, ask if you are able to substitute another number.
2. Treat your garbage and mail carefully–Thieves have no problems digging in your trash or mailbox if it means they can get your credit card number or other information to use your identity fraudulently. I highly recommend paying bills online and receiving paperless statements via online/email. If you must mail sensitive information, use the post office—not a blue drop box but an actual United States Post Office. Despite all the reports of database theft, the most common method thieves use to steal our personal information is through traditional rather than electronic channels. The Justice Department (2006) found that in the cases where the method was known, 68.2% of information was obtained off-line vs. only 11.6% obtained online.
3. Use complex passwords–put passwords on all credit cards, bank accounts and phone accounts. When selecting passwords for these and your online accounts, avoid using anniversary or birthdates, mother’s maiden name or the last four digits of your SSN. I would even go as far as to not use your pet’s name because you never know who is listening when you are walking your dog or calling your cat to come in. The strongest passwords are combinations of letters and numbers or special characters.

 A great reference for tips for Identity Theft Protection or a resource for victims of Identity Theft is provided by the Federal Trade Commission.

From Drew Baker, Risk Specialist,

Tips to avoid ID theft: ID theft can involve plastic card fraud and check washing. If someone uses your plastic card or check, they are assuming your identity. Here are a few ways to try to avoid these frauds.

1. Avoid check washing by switching to online billpay: that’s the quickest and easiest solution. It’s also better for the environment and uses less paper and fuel to drive your paper where it is going. If you still must write paper checks, use the Uniball 207 Gel Pen, as it is touted as an anti-check washing pen. Don’t put personal checks in your outgoing mail if your mailbox is unsecured.  Avoid giving unknown individuals checks for payment. If you must pay someone that you don’t know for goods or services, use cash, money order or a cashier’s check.
2. Avoid plastic card fraud. Skimming devices are increasingly being used to copy cards and PINs which are then used to make counterfeit cards. These skimming devices are usually placed as an overlay onto an ATM machine or pay-at-the-pump gas station kiosk. You should always visually inspect any card reader that you put your card into. If you see that the plastic overlay is loose, off-colored or comes off in your hand, don’t use it and report this to the police. Run your hands over the card reader and key pad to make sure they are not fake ones placed on top of the real thing. The crooks are also placing fake speakers, brochure holders or other devices with cameras pointed at the key pad to capture the pin numbers. Use an ATM that you are familiar with, so you know what it looks like. Watch your account activity carefully: crooks will “test” a stolen card number to make sure it works by sending through a small authorization first (iTunes for $1.00, for example) so you may not notice or care. The big transactions will show up later; count on it!

Filed under: Ask GHCU, Captain Safety! by Shannon
No Comments »

With rates for mortgages still dipping into historically low territory, many homeowners are wondering if the time is right for a refinance. Refinancing to a lower rate could potentially save thousands of dollars in interest, shorten the time left on a loan or both. How do you know when a refinance is worth the work?

If you’re considering refinancing, ask yourself the following:

• Do you owe more than the house is worth? If what you owe on your home (including any home equity loans or lines of credit) is more than 105% of the home’s value, you may qualify for the federal Home Affordable Refinance Program (HARP) or the Home Affordable Modification Program (HAMP).  If you feel you may be eligible for HARP or HAMP, contact your mortgage servicer for assistance.
• Will you save at least one point on the Annual Percentage Rate (APR)? If your current mortgage rate is 6.25% APR, a rate of 5.25% APR or lower may well save you some money.
• What will your closing costs be? Shop around for a lender with low closing costs—you don’t want to have the savings from your reduced monthly payment eaten up by fees.
• Will you be extending the terms of your loan? If you’re 10 years from paying off your mortgage, then refinancing out another 30 years may not make sense for you. Of course, you can always make additional principle payments. Check that your lender has no prepayment penalty.
• Can you shorten the term of your loan? Perhaps, with a reduced interest rate, you can shift from a 30-year mortgage to a 15-year and save yourself some interest.
• Is your credit score ready? If you believe a refi is in your future, be sure you qualify for the best rate possible by checking and cleaning up your credit histories (you can get these free at annualcreditreport.com).

If you think this might be the right time to refinance, the Personal Finance Representatives at Group Health Credit Union have worksheets and calculators to help you know for sure. Visit one of our branches to get started. But don’t delay! Most financial experts predict a sharp rise in mortgage interest rates in time for the high demands of spring and summer.

Filed under: Ask GHCU, Financial News and You, Money management tips by Shannon
2 Comments »

There’s never a bad time to begin or boost your retirement savings, but tax season is a particularly good time to consider your IRA options.

What are the choices?

A traditional IRA allows you to make contributions for immediate tax savings. The earnings of the IRA grow tax-deferred until you begin making withdrawals in retirement. The amount of your contribution which you are able to deduct from taxable income may depend on participation in an employer 401(k) and income level.

A Roth IRA doesn’t give you the immediate tax savings,  but withdrawals are tax-free in retirement. There are income limitations that determine who can contribute and how much; consult with a tax advisor for information on eligibility.

Who is eligible to invest?

Anyone under age 70 ½ who is still earning an income can invest in a traditional IRA. For both types of IRA, if you’re under 50, you can invest up to $5,000 a year; those 50 and over can invest up to $6,000, depending on your Adjusted Gross Income (AGI).

Which IRA is better?

Which IRA you choose depends on your needs. Here are some questions that may help you determine which IRA will work better for you:

• Is your first priority to reduce your taxable income for 2009? A traditional IRA may reduce your taxable income when you make your contributions.
• Are you in a stronger position to take the tax hit now than you will be in retirement? The earnings of a Roth IRA are tax-free rather than tax-deferred like a traditional IRA; you pay the tax now rather than later.
• Does participation in your employer 401(k) plan plus your income make you ineligible for the tax benefit of a traditional IRA? You can still enjoy the tax-free, qualified withdrawals from a Roth IRA down the road.
• Are you concerned about the tax burden on your heirs? Roth IRAs don’t require minimum distributions after age 70 1/2, so your earnings continue to grow, and your heirs will be able to take out that money without paying income tax.

Some experts predict that Americans will need as much as 85% of our working income in retirement. That requires a great deal of careful thought and prudent investing. But it’s never too early or too late to begin, so consult with a financial expert to determine your goals and begin working toward a secure retirement. For more information on retirement plans and IRAs, you can visit the IRS.gov website.

Filed under: Ask GHCU, Financial News and You, Money management tips by Shannon
No Comments »

No matter how you give, you want to be certain your money goes to the intended recipient. With the advent of charitable giving via text message, there are even more ways for thieves to cash in on your good intentions. Here are some tips to be sure your money goes where you meant it to:

• Never respond to an email or text message solicitation, even if it appears to be from a reputable organization. Go directly to that organization’s website to donate or send them a check in the mail.
• Be wary of any email claiming to contain photographs of victims or the earthquake scene. These emails may contain viruses and should be deleted immediately.
• When using text messaging to donate, be certain you’ve got the right number. The American Red Cross is receiving donations via text, and their number is on their website. Numbers forwarded by well-intentioned friends may still contain incorrect and even fraudulent information.
• Regard with suspicion anyone soliciting contributions by phone or at your front door, particularly if you’ve never heard of the organization they represent and if you didn’t initiate the conversation. Never give your credit card number or account information to anyone whose affiliation you can’t completely verify.
• When donating online, be certain the webpage where you give your information has “https” in the URL and a lock icon somewhere on the page. These indicate a secure site.
• The Better Business Bureau provides a list of charities that have been vetted by the Bureau.

Filed under: GHCU Events, GHCU News by Shannon
No Comments »

The 7.0 magnitude earthquake that struck Haiti on January 12 had a devastating impact on the lives of the Haitian people: the Haitian government estimates the death toll may be as high as 200,000, with perhaps a quarter-million residents of the country injured and up to 2 million homeless. The need for aid is increasingly desperate as supplies grow short.

The world has responded with aid in the form of money, medical supplies and healthcare professionals, food, clean water and other necessary assistance. But still more help is needed.

To aid in the effort to help the victims, GHCU is accepting donations on behalf of Doctors Without Borders. Members and the public are welcome to donate at any of our branch locations or by calling 800-562-5515 (206-298-9394 locally).

Doctors Without Borders—also known as “MSF” for Medecins Sans Frontieres—is an “international medical humanitarian organization” started via a cooperative effort among journalists and doctors in France in 1971. Independent, impartial MSF exists solely to assist people who have found themselves in fear of their lives due to violence or natural disaster. The doctors, nurses, epidemiologists, lab techs and other healthcare professionals who work with MSF believe that everyone, no matter where they live, is entitled to quality medical care.

GHCU will be accepting contributions at least through the end of February. Doctors Without Borders is an extremely efficient organization, with more than 85% of contributions going directly to social-mission programs and public education, so you know that your contribution is going where it is most urgently needed and where it will have the most impact. Thank you for your generosity.

Filed under: GHCU Events, GHCU News by Shannon
No Comments »

ConsumerReports.org provided this great article on Yahoo Finance. Skimming machines placed in ATMs and other points of sale (retailers, restaurants, gas stations) allow thieves to steal your card number and your PIN. That’s all they need to drain your account. Learn how to protect yourself from skimmers and scammers.

Filed under: Captain Safety! by Shannon
No Comments »

For entertainment value, most people rate doing taxes right up there with root canals and organizing the garage. Taxes can be confusing, time-consuming and frustrating. GHCU is happy to present an easier way to do taxes and a great tool for managing your money all year long: TurboTax Online.

TurboTax Online (TTO) is a faster, more accurate way to do taxes. Because TTO is integrated into GHCU’s online banking, tax and account data are securely, automatically imported into the TurboTax program. And you can choose to have your return directly deposited into your account, saving you time. Since your information will be safely stored with TurboTax, you’ll have records that carry over from year to year—saving you the time and annoyance of digging up old records to find information. This information is secure and can only be accessed by your unique password and user name.

There are several versions of TurboTax Online available to GHCU members, including a free Federal Edition. For those members who choose a paid product, a 15% discount will be applied to their chosen version. Members who are already using a desktop version of TurboTax can integrate it with GHCU’s TTO version and still receive the discounted price.

Do you want to use TurboTax Online but are not yet enrolled in online banking? You can quickly and easily register for GHCU’s free online banking by calling our Virtual Branch at 800-562-5515 or 206-298-9394. Once you’re signed on to online banking, you can enjoy its many additional benefits: see your accounts at any time, transfer funds, order checks and conduct many other financial transactions from the comfort of your home or office.

If you have online banking and would like to take advantage of this service, log in to your online banking account and check for the “My TurboTax” tab at the top of the page. It’s that simple to get started!

Filed under: GHCU Promotions, Money management tips by Shannon
4 Comments »

What resolutions will you make this January 1? Year after year, Americans vow to exercise more, eat better, quit smoking—clearly we’re a nation concerned with our physical health. But what about your fiscal health? Here are three things you can do to strengthen your family’s finances and get fiscally fit!

1. Look over your insurance policies; tell provider(s) about changes. 
   Saving money is great, but not if you have to skimp on coverage. If you’ve had changes in your life over the past year, now’s a good time to reevaluate your insurance needs. If a child passes a certain age limit (usually between 20-24), he or she may have to be removed from your health insurance policy, which could lower your rate. Did you sell or buy a car? One car more or less can impact your auto insurance costs. Did you quit smoking? That may also bring your health insurance rates down. Have you added a new member to your family? If you haven’t had a dependent before, now may be the time to look into life insurance. Talk to your insurance company about changes that may have an effect on your rates and also about packaging several policies (auto, life, home, renter’s) for better rates on all. If your employer offers it, a flexible spending account (FSA) or health savings account (HSA) can also save you money. With these accounts, you determine an amount from each paycheck to be set aside to cover health costs such as co pays, prescriptions, even over-the-counter medications. The deductions come from your paycheck on a pre-tax basis, saving you from paying taxes on that money. HSAs even accumulate tax-free interest! The only drawback: with an FSA, you have to spend the total amount before the end of your company’s benefit year, or the money is gone forever.
2. Make sure your savings are earning.
   Money sitting in a savings account is a little like a teenager on the couch—lots of potential, but not much happening at present! If you have savings, now may be a good time to consider if your money is doing all it can for you. Money market accounts, certificates, IRAs: all of these products make your money work harder by earning more interest.If you need to stay flexible and liquid, short-term certificates are a great way to earn without tying up your money for long periods. Money market accounts allow you even greater access to your money while still earning interest higher than a traditional savings. If liquidity isn’t your primary concern, longer-term certificates get higher rates of return. Consider also that GHCU’s 12- and 24-month certificates come with a free one-time bump. If GHCU’s rates go up during the term of your certificate, you can bump up the rate of your existing certificate (for the remainder of the term) to match.If you’re looking ahead to retirement, a Roth IRA can help you build equity and avoid tax when you start withdrawing your money. On the other hand, investing in a traditional IRA now can help you reduce your tax burden for 2009.
3. Do or redo the family budget.
   Planning out your budget is a bit like going to the gym—not much fun while you’re doing it, but you’ll feel great when it’s over. And like going to the gym, it’s not something you can do just once if you want the full benefit. Changes in your life should drive changes in your budget. A new baby (or even a new puppy), a divorce or a marriage, a change in your job situation: all of these can impact your finances, and planning now can save pain later.If you’re spending too much, can you reduce some of your discretionary expenses? If you’ve kept good records, you’ll know if you stayed on track or allowed a few more splurges than you’d budgeted for. Can you limit the lattes, dump the gym membership and buy a cheap bike, have game night at home with the kids instead of going out to a restaurant or movie? Perhaps, instead of having your own magazine subscriptions, you can get to know the periodicals area of your local library. Can’t cut back in one area? Make concessions in another. Maybe your employer subsidizes a bus pass so you can save on gas, for example.Tracking your spending enables you to see where you can make several smaller adjustments instead of large, painful spending cuts. And when your budget works without making you feel overly deprived, you’re far more likely to stay with it. Kiplinger offers an excellent, free budget worksheet to help you get started.

Filed under: Money management tips by Shannon
2 Comments »

Drew Baker, aka “Captain Safety,” is our Risk Specialist here at GHCU. He knows a lot about how fraud is perpetrated, and he’s going to be a frequent guest blogger. We hope his expertise will help our members and readers protect themselves from identity thieves and other scam perpetrators. 

from Drew:

Leaving sensitive information in your outgoing mail is becoming increasingly risky. Unsecured mailboxes are an open an invitation to criminals.

A few years ago, some of my mother’s checks were stolen out of her mailbox. The checks were “washed” and cashed for different amounts than they were originally written, and by different people than the intended payees. In order to have the charges reversed, she had to file a police report and fill out affidavits for the bank. Since the checks were for merchants and assorted bills, she had to prove the fraud to the merchants who did not receive their intended payments. It was a lengthy process, and the loss to her sense of security is something she may never recover.

Risk Management has seen an increase in this type of fraud occurring on GHCU member accounts this year. Every GHCU check washing case in 2009 involved members with an unsecured mailbox, who were writing paper checks and putting them in the mailbox with the flag up. The raised flag on an old-fashioned mailbox is becoming a beacon for fraudsters, identity thieves and check washers, who waltz down your street plucking ripe checks and personal information. You can prevent this from happening to you, and the fixes are relatively simple:

• Sign up for free online bill pay. It’s that easy. Visit GHCU.org to enroll.
• Drop off mail in a secure USPS mailbox or at the post office.
• There are a few pens on the market that can prevent check washing by using special ink. Try your local office supply store.

Help to reverse this fraud trend and keep your checks, personal information and neighborhood safe. If you suspect some of your outgoing mail/checks have been intercepted, immediately notify GHCU. Please share this with your loved ones and neighbors.

Do you have a fraud or identity theft question to ask Captain Safety? Leave your question in the comments, or email them to him at news@ghcu.org. Remember, do NOT include personal information in comments or emails!

Filed under: Captain Safety! by Shannon
4 Comments »