State Employees’ Credit Union’s (SECU’s) Bridge account, introduced in 2007, is helping transition savers into investors. The account provides an avenue for saving without the risk of loss associated with the stock market, by offering the security of NCUA insurance. With earnings tied to the quarterly change in the Standard & Poor’s (S&P’s) 500® Index, the account can earn as much as 3% per quarter and did so for the second quarter of 2009. With only one week left in the third quarter, it appears likely that maximum earnings will be paid for this quarter as well.
Currently more than 4500 members have Bridge accounts with assets totaling over $3.5 million. These accountholders are working towards accumulating funds needed to open investment accounts at SECU, which have seen much growth in recent months. As Credit Union members look for safe and secure options for their deposits, the Bridge account is an attractive alternative in today’s unpredictable market.
Bridge accounts can be opened with a minimum of $25 and will accept deposits up to $3,000. If market returns are positive during a quarter, dividends will be paid up to the maximum rate of 3% (12% APR/12.55% APY). If market returns are negative, no dividends will be declared for that quarter, but there will also be no loss.
Joan McCool, SECU Senior Vice President of IRA & Investment Services, comments, “The SECU Bridge account is an excellent no-risk tool to help members establish the savings needed to ultimately become investors. We certainly encourage our members to invest in their futures through the accumulation of long-term savings. The Bridge account provides a unique way for Credit Union members to work towards meeting their financial goals.”
About SECU
SECU is a non-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for more than 70 years. Currently serving over 1.5 million members, SECU provides services through 226 branch offices, over 1,000 ATMs, 24/7 call centers and a website—www.ncsecu.org.
Contacts:
Education Services, SECU
Leigh Brady, Senior Vice President
919-807-8344,
fax: 919-807-8348
leigh.brady@ncsecu.org
