A not-for-profit credit union is all about providing great financial services to its members. That's its sole purpose, distinguishing a credit union from other financial institutions, particularly a bank. A bank's first priority is to maximize shareholders' profits - from the rates and fees charged to its customers for loans and services. But you might lose ALL the benefits you enjoy at Star USA Federal Credit Union unless Congress hears loud and clear from members like you that you want us protected as part of federal tax reforms.
A credit union - not-for-profit and owned by its members - typically offers lower rates on loans, higher returns on savings and lower or fewer fees for services. A credit union can do that because its emphasis is on providing financial services to members at reasonable costs and returns - not by amassing profits from them.
By making financial services more affordable, a credit union helps you reach your goals and improve your financial well-being.
You might say a bank uses people to make money - but a credit union uses money to help people.
If the savings and service you enjoy at Star USA FCU is important to you, please take a moment to ask Congress to preserve credit unions' tax status as part of tax reforms occurring now. Without that, you could lose the many benefits you enjoy.
Star USA Federal Credit Union FAQ
As we reach the mid-point of summer, what financial trends are you witnessing in this area?
At all of our offices, we are receiving a lot of questions from our members about reducing debt. With the economic uncertainty that many folks are facing they want to eliminate payment obligations. With job uncertainty and the future of coal in this region, consumers want to be able to save more and see a decrease in their debt load. One solution that we recommend is to examine your mortgage loan. There was a great deal of refinancing in the past few years that did indeed help some consumers to reduce their loan principal. In some cases, however, they lengthened the term which translates to paying more in interest over the term of the loan. For instance, at Star USA, we have a 5 year Adjustable Rate Mortgage at 2.65%. On a $200,000 mortgage loan, if your current fixed rate is 4.65%, you can save $19,000 over the 5 year term. Another key to refinancing at a lower term is to continue to make the same payment or at least close to same payment while taking advantage of a lower rate. This obviously reduces your principal balance much more quickly.
As consumers are working to reduce what they owe, what other trends are you seeing?
The marketplace is continuing to be driven by convenience. A recent national survey shows that nearly 60% of consumers are now paying their bills through their smart phone. And we are seeing that at our credit union as well. Fewer people are walking into the offices of financial institutions as technology has replaced brick and mortar facilities. Interestingly enough, it is not just the 30 and under demographic that has embraced the financial technology offerings but the over 50 group is rapidly becoming players with regard to the electronic advances that we have witnessed in the past few years. Convenience was once having a credit union branch or office in your office building or the factory where you worked. Now, convenience is defined by the number of financial services you can access on your tablet or smart phone. Can you transfer funds from your savings to your checking account on your phone? Can you apply for a loan on your ipad? What about bill payment? Can you authorize your monthly obligations to be automatically transferred from your account to a creditor on a regular basis? And, if a change needs to be made, can you complete the change from your mobile device?
What about the capabilities of transferring funds from one person’s account to someone else’s account at another institution?
We call that “pop money”. If you owe someone money for dinner or concert tickets, it used to be that you had to write them a check or hit an ATM to get the cash to repay the individual. Now, if you have their account information such as account number and the routing number of their financial institution, you can go to your mobile device, access your online system and transfer from your account at Star USA to their account at another financial institution or another account at Star. This is just the beginning of what we will be seeing in the future.