Withdrawing money from a 9-month CD before the term ends typically incurs an early withdrawal penalty. At People Driven Credit Union, the Early Withdrawl Penalty is a Loss of 90 days of interest for withdrawing funds early.

Yes, your money is safe in a 9-month CD. At People Driven Credit Union, our CDs are insured by the NCUA (National Credit Union Administration) up to $250,000 per depositor.

The difference between the dividend/interest rate and APY (Annual Percentage Yield) lies primarily in considering compounding. Here’s a breakdown:

Interest Rate

• Definition: The interest rate is the nominal rate at which interest is paid on the principal amount.
• Compounding: It does not account for how often interest is compounded. It is simply the rate without considering the effects of compounding within the period.
• Usage: Often quoted as an annual rate, but it can be applied over different compounding periods (monthly, quarterly, etc.).

Dividend Rate

• Definition: Similar to the interest rate, but typically used by credit unions or certain investment accounts to describe the rate paid on deposits or investments.
• Compounding: Like the interest rate, it does not account for the frequency of compounding.

APY (Annual Percentage Yield)

• Definition: APY reflects the total amount of interest earned on an account in a year, accounting for the effect of compounding interest.
• Compounding: It includes the effects of compounding, which means it shows the real return on investment or savings over a year.
• Formula: The formula for APY is:

  APY = (1 + r/n)^n - 1

  where r is the nominal interest rate, and n is the number of compounding periods per year.

Example

Interest Rate/Dividend Rate: If a savings account offers a 5% interest rate compounded monthly, the nominal rate is 5%.

APY: When considering the monthly compounding, the same account will have an APY slightly higher than 5% because the interest earned each month also earns interest in subsequent months.

Key Differences

• Compounding Effect: APY incorporates the effect of compounding, whereas the nominal interest/dividend rate does not.
• True Earnings: APY provides a clearer picture of the true annual earnings from an account or investment because it reflects the impact of compounding.
• Comparison: APY is a better metric for comparing different financial products as it standardizes the impact of compounding across different offers.

In summary, while the interest rate or dividend rate gives you an idea of the annual rate of return without compounding, the APY gives you the actual yearly return, taking into account the compounding of interest.

APY stands for Annual Percentage Yield. It is a measure of the total amount of interest earned on an account based on the interest rate and the frequency of compounding over a year. APY is a useful metric for comparing the annual earnings on different savings products, such as savings accounts, CDs, and money market accounts, because it standardizes the effect of compounding.

Key Points About APY

• Includes Compounding: APY accounts for how often interest is compounded (e.g., daily, monthly, quarterly), which can significantly affect the total interest earned over time.
• Comparison Tool: APY provides a standard way to compare the annual interest earnings of different savings products, regardless of how frequently interest is compounded.
• Formula: The formula for calculating APY is:

  APY = (1 + r/n)^n - 1

  where r is the nominal interest rate (expressed as a decimal), and n is the number of compounding periods per year.

• Higher APY: A higher APY indicates that you will earn more interest on your money over a year, assuming the same principal amount.

Example

For example, if a savings account offers an interest rate of 5% compounded monthly, the APY would be higher than 5% due to the effect of monthly compounding. This makes APY a useful metric for comparing the real return on different financial products.

A 9-month CD works as follows:

1. Opening the CD: You deposit a lump sum of money into the CD account. The amount often needs to meet the bank or credit union’s minimum deposit requirement.
2. Fixed Term: The money is committed to the CD for a fixed term of nine months. During this period, you cannot add to or withdraw from the principal amount without incurring penalties.
3. Interest Rate: The bank or credit union pays you a fixed interest rate on the deposited amount for the entire term. This rate is usually higher than that of a regular savings account because the bank can use your money for a predictable period.
4. Interest Accumulation: Interest is typically compounded and credited to your account at regular intervals, such as monthly or quarterly.
5. Maturity: At the end of the 9-month term, the CD matures. You then have a few options:
   • Withdraw the funds: You can take out your initial deposit plus the interest earned.
   • Renew the CD: You can roll over the funds into a new CD, either for the same term or a different one, possibly at a new interest rate.
   • Transfer the funds: You can transfer the money to another account.
6. Early Withdrawal Penalty: If you need to access the money before the 9-month term ends, you will likely face an early withdrawal penalty. This penalty varies by institution but generally involves forfeiting a portion of the interest earned.
7. FDIC/NCUA Insurance: If the CD is held at a bank, it is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor per bank. If held at a credit union, it is insured by the NCUA (National Credit Union Administration) with the same coverage limits.

A 9-month CD can be a suitable option for short-term savings goals, offering a balance between earning a higher interest rate and having your money tied up for a relatively short period.

A 9-month CD (Certificate of Deposit) is a type of savings account offered by banks and credit unions. Here are the key characteristics:

1. Fixed Term: It has a maturity period of nine months, during which the deposited money is locked in.
2. Interest Rate: Typically offers a fixed interest rate generally higher than regular savings accounts.
3. Minimum Deposit: Often requires a minimum deposit amount to open the account.
4. Early Withdrawal Penalty: If you withdraw the funds before the 9-month term ends, you usually incur a penalty, a portion of the interest earned, or a specified fee.
5. FDIC Insured: In the United States, CDs from credit unions are usually insured by the National Credit Union Administration (NCUA) up to $250,000 per depositor per credit union.

A 9-month CD can be a good option if you have a specific short-term savings goal and want to earn a higher interest rate without taking on much risk.

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 1.

YES! Depending on your browser, once you have opened your statement you may see icons on the top corner for downloading and printing.  You may also right click on your mouse and choose ‘save as’ or ‘print’.

We suggest using a password only you would know. Do not save any passwords on devices that are not yours. Use facial recognition or thumbprint recognition on your private devices.

When preparing your tax return, you are asked to include the amounts of interest earned on your accounts. If your account earned $10 or more in the calendar year, a 1099-INT will be issued. 1099-INTs are typically mailed to you by the end of January in the new year. You can also access this in online banking; click the E-statement tab and choose ‘Tax statements.’

There is a $1 per month charge for mailed statements unless you are under 23 years of age or are a Senior Power Pack member.

PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!

We are sorry to hear you’d like to close your account at People Driven Credit Union.  Please let us know if there was anything we could have done to make your experience better.

Please give us a call at 844-700-7328.

PDCU’s routing number is 272484988.

Yes, many borrowers choose to refinance their ARM to a fixed-rate mortgage before the adjustable period begins to lock in a stable interest rate and predictable monthly payments.

Refinance

Consider your financial situation, how long you plan to stay in the home, and your risk tolerance for potential interest rate changes. ARMs can be a good choice if you plan to sell or refinance before the adjustable period begins or expect interest rates to remain stable or decline.

Some ARMs may have prepayment penalties, but People Driven Credit Union does not. You can refinance or pay off your Adjustable Rate Mortgage with PDCU early without any prepayment penalties.

Yes, ARMs often have caps that limit how much the interest rate can increase at each adjustment period and over the life of the loan. These caps provide some protection against large payment increases.

ARM interest rates adjust based on a specific index (such as the Treasury index) plus a margin set by the lender. When the index rate changes, the interest rate on your loan adjusts accordingly.

The main risk with an ARM loan is that your monthly payments can increase if interest rates rise. Understanding the potential for payment changes is important to ensure that you can afford higher payments if the rate adjusts upward.

ARMs typically offer lower initial interest rates compared to fixed-rate mortgages, which can lead to lower initial monthly payments. This can be beneficial if you plan to sell or refinance before the adjustable period begins.

The initial period is when the interest rate on an ARM is fixed. After this period, the rate adjusts at regular intervals. For example, a 7/1 ARM has a fixed rate for the first seven years and then adjusts once every 12 months.

ARMs are often described with two numbers, such as 5/5, 7/1, or 10/1. The first number indicates the initial fixed-rate period (in years), and the second number indicates how often the rate will adjust after the initial period (in years).

Unlike a fixed-rate mortgage, where the interest rate remains constant throughout the loan term, an Adjustable Rate Mortgage has an interest rate that adjusts periodically. This means your monthly payments can increase or decrease over time based on changes in the interest rate.

People Driven finances motor homes, campers, boats, motorcycles, ATVs and snowmobiles!

You may give us a call at 248-263-4100 to speak with the loan department.

Yes!  All eligible loans can be skipped once per calendar year for a fee of $35.

Fresh Start Auto Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, log in and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Log into iTalk (telephone teller) and make your payment. Option 3 for payments.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

GAP (Guaranteed Asset Protection) covers the difference between the cash value of your vehicle and the balance owing if the car is deemed a total loss, up to 150% LTV. GAP is a $575 one-time fee that can be rolled into the loan or paid in cash. GAP also provides a $1000 credit towards the next vehicle you finance through PDCU and unlimited auto deductible claims for up to five years, up to $500 per claim for any vehicle you own and insure.

• Covers the difference between the outstanding loan balance and the actual value (determined by the insurance company) of the auto up to the max LTV.
• Covers total loss AND unrecovered theft
• May cover up to $1000 of the deductible if there is a gap after the insurance pays

GAP insurance is offered during the auto loan process.  Please call us at (248) 263-4100 for more information.

An Educational IRA Certificate, more commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

Key Features:

1. Tax Advantages:
   • Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
2. Fixed Interest Rate:
   • Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
3. Term Options:
   • These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for when the funds will be needed for educational expenses.
4. Contribution Limits:
   • The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
5. Age Limits:
   • Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30s.
6. Qualified Expenses:
   • Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and in some cases, room and board for students enrolled at least half-time.
7. Transferability:
   • If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

Benefits of a Educational IRA Certificate:

• Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
• Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
• Wide Range of Uses: Funds can be used for a variety of educational expenses, covering primary, secondary, and higher education.

Considerations:

• Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
• Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
• Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

Educational IRA Certificates are Suitable For:

• Parents and Guardians: Those looking to save for their child’s educational expenses in a tax-advantaged way.
• Family Members: Relatives who want to contribute to a child’s education savings.
• Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

An Educational IRA Certificate is an excellent tool for families planning for future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

Key Features:

1. Higher Interest Rates:
   • Higher interest rates compared to regular savings accounts. The rates are typically variable, meaning they can change based on market conditions.
2. Tax Advantages:
   • Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
3. Flexible Terms:
   • These certificates may offer various term lengths, giving you the flexibility to choose a term that aligns with your retirement planning.
4. Liquidity and Access:
   • Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
5. Stable Investment:
   • They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
6. Contribution Limits:
   • The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs, set by the IRS.
7. Insurance:
   • Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

Benefits of a Money Market IRA Certificate:

• Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
• Higher Returns: Often offer higher returns than regular savings accounts while still maintaining a low level of risk.
• Flexibility: Typically more flexible than traditional CDs, with some allowing limited withdrawals.
• Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

Considerations:

• Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
• Contribution Limits: Be mindful of the annual contribution limits set by the IRS.
• Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

Money Market IRA Certificates Are Suitable For:

• Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
• Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
• Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

Key Features of a Traditional IRA Certificate:

1. Tax-Deferred Growth:
   • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
   • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
2. Fixed Interest Rate:
   • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
3. Terms and Maturity:
   • These certificates usually have specific terms ranging from a few months to several years.
   • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
4. Early Withdrawal Penalties:
   • Withdrawing funds before the certificate matures may incur penalties.
   • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
5. Contribution Limits:
   • The annual contribution limits are the same as for IRAs, set by the IRS.
6. Required Minimum Distributions (RMDs):
   • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

Benefits:

• Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
• Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
• Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

Considerations:

• Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
• Contribution Limits: Stay within the annual contribution limits set by the IRS.
• RMDs: Plan for required minimum distributions starting at age 73.

Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

Here’s a breakdown of the features of a a Roth IRA Certificate:

1. Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won’t get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
2. Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
3. Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
4. Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
5. Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
6. Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
7. Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
8. Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

A Certificate of Deposit is a secure and reliable savings tool that offers higher interest rates in exchange for committing your funds for a fixed period. It’s an excellent option for those looking to achieve specific financial goals with minimal risk.

Key Features of a Certificate of Deposit (CD):

1. Fixed Term: CDs have a specified term or maturity date, which can range from a few months to several years. Common terms are 6 months, 1 year, 2 years, or 5 years.
2. Interest Rate: CDs typically offer a higher interest rate than regular savings accounts. The rate is fixed for the duration of the term, providing a predictable return on investment.
3. Minimum Deposit: Many CDs require a minimum deposit to open, which can vary depending on the financial institution and the specific CD product.
4. Early Withdrawal Penalties: Withdrawing funds from a CD before it matures usually incurs a penalty, which can reduce or negate the interest earned. Some CDs offer more flexible terms with lower penalties or no penalties for early withdrawal, but these often come with lower interest rates.
5. FDIC/NCUA Insurance: CDs from banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), and CDs from credit unions are insured by the National Credit Union Administration (NCUA), up to the maximum limit allowed by law.

A CD (Certificate of Deposit) Ladder is an investment strategy that involves dividing a sum of money into multiple CDs with different maturity dates. The primary goal of this approach is to balance the benefits of earning higher interest rates on longer-term CDs while maintaining liquidity by having funds become available periodically. Here’s how it works:

How a CD Ladder Works

1. Divide Your Investment:
   • You start by dividing your total investment into equal parts. For example, if you have $10,000, you might divide it into five parts of $2,000 each.
2. Purchase CDs with Staggered Maturities:
   • Invest each portion in CDs with different maturities. For instance, you could buy a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD.
3. Reinvest as CDs Mature:
   • As each CD matures, you reinvest the principal (and interest, if desired) into a new CD with the longest term in your ladder. For example, when the 1-year CD matures, you would reinvest that amount into a new 5-year CD and continue this process as each CD matures.

Benefits of a CD Ladder

1. Higher Interest Rates:
   • Longer-term CDs typically offer higher interest rates compared to short-term CDs. By using a ladder strategy, you can take advantage of these higher rates for at least a portion of your investment.
2. Regular Access to Funds:
   • A portion of your investment will mature at regular intervals (e.g., every year), giving you periodic access to your money without penalty. This can be useful for meeting short-term financial needs or taking advantage of new investment opportunities.
3. Reduced Interest Rate Risk:
   • By spreading your investment across CDs with varying maturities, you reduce the risk of being locked into a low-interest rate for an extended period if rates rise. As each CD matures, you can reinvest at the current rates, potentially benefiting from higher interest rates.
4. Predictable Returns:
   • CDs are generally considered low-risk investments with fixed interest rates, providing predictable returns. This makes a CD ladder a stable and reliable investment strategy.

Example of a CD Ladder

Let’s say you have $10,000 to invest and you set up a 5-year CD ladder:

• Year 1:
  • Invest $2,000 in a 1-year CD
  • Invest $2,000 in a 2-year CD
  • Invest $2,000 in a 3-year CD
  • Invest $2,000 in a 4-year CD
  • Invest $2,000 in a 5-year CD
• Year 2:
  • The 1-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature according to their original terms.
• Year 3:
  • The 2-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 4:
  • The 3-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 5:
  • The 4-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The 5-year CD continues to mature.

By the end of Year 5, you have a ladder of 5-year CDs maturing every year, providing you with a regular income stream and the opportunity to reinvest at current interest rates.

A CD Ladder is an effective strategy to maximize returns while maintaining liquidity and reducing interest rate risk. It’s an excellent choice for conservative investors looking for a predictable and stable way to grow their savings. At People Driven Credit Union, we offer competitive rates and flexible terms to help you build a CD ladder that meets your financial goals. Contact us today to learn more about how you can get started with a CD Ladder and take control of your financial future.

Set Up a CD Ladder

You will receive a notice in the mail 30 days before the maturity date of your CD.

Once the initial deposit has been made funds cannot be added to the CD until maturity.  Once the CD matures you may add funds if you wish to renew the CD.

Yes.  The penalty for withdrawing from/closing the CD will be based on the interest earned on the account.

Although a CD is not necessarily liquid, it is considered one of the safest investments available. The longer CD you have, the higher the rate is going to be. There are no fees for the Certificate of Deposit, and you earn interest based on the balance in the CD.

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

Click here to view the video

For wires with People Driven Credit Union, use this form and the information below:

Wire to:

• Alloya Corporate Federal Credit Union
  26555 Evergreen
  Southfield, MI 48076
  ABA number: 2724-78075

Credit:

• People Driven Credit Union
  24333 Lahser
  Southfield, MI 48033
  Account Number: 2724-84988

Final Credit Member Name:

• Member’s PDCU Account Number
  Member’s Address
  Account member wants funds deposited into (for example, Savings or Checking)

Member Wire Authorization Form

PDCU’s checking accounts do not require a minimum balance and have no monthly maintenance fees!

To minimize the risk of overdrafts, we recommend checking your account balance daily. Pay transactions only when sufficient funds are available, and avoid assuming that all items will clear your account immediately. Additionally, consider utilizing e-alerts to receive notifications when your balance is running low. For more information, please refer to the E-Alerts section.

Please log into the online banking site.  Under the e-statements tab you will see ‘order checks’.  Please click that and you will be directed to Harland Clarke to compete your order.  Prices vary by style.

PDCU offers a few types of checking accounts, view all our Checking Account Options.

If construction costs exceed the loan amount, you will be responsible for covering the additional expenses. It’s crucial to have a detailed budget and contingency plan to avoid running short on funds during construction.

Due to the increased risk involved, interest rates for construction loans are generally higher than for traditional mortgages. Rates can be variable or fixed and are determined based on your credit profile, loan amount, and market conditions.

Eligibility requirements can vary but typically include a good credit score, a stable income, a detailed construction plan, and a contract with a licensed builder. Some lenders may also require a down payment.

Construction loans can be used to cover the costs associated with building a new home. This includes land purchase (if not already owned), construction materials, labor, permits, and other related expenses.

A one-time close construction loan combines your construction financing and permanent mortgage into a single loan. You only have to go through the closing process once, saving you time and money on additional closing costs and paperwork.

Construction loans provide funds in stages as your home is being built. These funds are disbursed to your builder based on a pre-agreed schedule, often called “draws.” During construction, you typically make interest-only payments on the disbursed amounts. Once construction is complete, the loan transitions to a permanent mortgage, and you start making regular mortgage payments.

A construction mortgage loan is a type of loan specifically designed to finance the construction of a new home. It typically involves two phases: the construction phase, where the loan funds the building process, and the permanent mortgage phase, where the loan converts into a standard mortgage upon completion of the home.

You may give us a call at 248-263-4100 to speak with the loan department.

Contactless cards, offer several benefits over traditional cards that require a physical swipe or insertion into a card reader. Some of these benefits include:

1. Speed: Contactless cards can be scanned quickly and easily, making transactions faster and more efficient. This can be especially useful in high-traffic retail environments where lines are lengthy.
2. Convenience: Contactless cards do not require a physical swipe or insertion, which can be particularly useful for people on the go, such as commuters or people running errands.
3. Increased security: Contactless cards can reduce the risk of fraud because they use near-field communication (NFC) technology, which creates a secure connection between the card and the card reader. Additionally, the risk of card skimming is lowered because a contactless card doesn’t leave the cardholder’s possession.
4. Reduced contact: Because contactless cards can be scanned without physical contact, they can help reduce the spread of germs and bacteria, which is especially important during a pandemic.
5. Adoption: Contactless payments are becoming more widely adopted; it may be more convenient for cardholders to have contactless cards as many merchants are starting to accept them.

Contactless card transactions are generally faster and more convenient than traditional card transactions.

WRITTEN STATEMENT OF UNAUTHORIZED DEBIT

In some cases we may restrict a card from being capable of completing an ATM deposit.  Please give us a call at 844-700-7328 if you are having trouble making a deposit.

Please give us a call at 844-700-7328 or visit a branch to order a new card.  Cards take up to 10 business days to arrive in the mail.

YES!  Your card may get declined if you are out of state or out of the country.  Please give us a call during business hours at 844-700-7328 and speak with a rep or coming into a branch.

You may also log into online banking and send the credit union a secure message!  Please let us know where you will be traveling, dates leaving and returning and a good phone number.

Please give us a call during business hours at 844-700-7328 and speak with a rep or come into a branch.

Please call 866-762-0558 from your primary phone number on your membership to activate your card.

To report a lost or stolen card during our business hours please call 844-700-7328 and a People Driven rep shall assist.  After hours please call 888-241-2510. In the event you need to call the after hours number, please give us a call during our office hours the following business day so we may place an order of a new card.

To request a skip-a-pay on a People Driven Credit Union mortgage, please get in touch with your mortgage processor, who is currently servicing the mortgage payments.  If your mortgage application was processed by:

• Member First Mortgage call (866) 898-1818 OR contact a Payment Solution Specialist (248) 263-4100
• TowneMortgage (formerly known as Americu) call (888) 778-9700
• Mortgage Center call (800) 353-4449

CONTACT US

Who do I contact about signing a loan that is in process?

If you are already working with a Lending Specialist, they can walk you through signing your documents electronically. This can be done from within online banking. You can also reach out to us at (248)263-4100, and one of our specialists will be able to assist you.

Can I still apply for a loan?

Yes. While we have adjusted how we serve you, you can still apply for a loan or credit card online through our website.

I’m financially impacted by the Coronavirus and may be unable to make my next loan payment(s). What should I do?

Rest assured, we’re in this together and here for you. We will be here to provide the financial assistance you need. For starters, we’ve waived the fee on our Skip-A-Payment program, which allows members with eligible loans to skip up to two monthly loan payments so they can keep up with other financial responsibilities. You can complete our Skip-A-Payment form, complete the application in online banking under the services tab, or call us at (248) 263-4100.

Again, if you or your family are experiencing financial hardship because of the current public health situation, we can help; tell us what you need.

Will my online bill payment be posted as scheduled?

Yes. All online bill payments will be processed as scheduled.

Do I still have access to my funds if they come in through direct deposit?

Yes. Your funds will be deposited as expected. You can access your funds via online banking and the People Driven Credit Union app. You can withdraw cash at ATMs and through drive-thru service at local branch centers.

Who do I contact about card disputes and fraud?

Please call our Member Center at (248) 263-4100 and speak with a team member to dispute any charges or report fraudulent activity.

How do I get a replacement debit or credit card?

Call us at (248) 263-4100, and a team member will work with you to get a replacement card sent directly to you. We have recently added debit card controls inside our phone app.

Is my money safe?

Yes! Your deposits are safe. Your deposits are insured through the National Credit Union Administration (NCUA), which means you can keep your money here with complete confidence that it will always be here when needed.

I need to withdraw cash. What are my options?

Rest assured, just because our branch lobbies are closed does not mean you cannot access your money. Your cash may be withdrawn via drive-thru lanes during our regular business hours and by ATM 24/7.  To find a surcharge-free ATM near you, click here.

How do I deposit cash?

You can make cash deposits via drive-thru lanes during our regular business hours and at most ATMs.

How do I deposit a check?

You can make check deposits via drive-thru lanes during our regular business hours, at ATMs, and, most conveniently, via the mobile deposit feature of our mobile app.

Are People Driven Credit Union branches staying open?

We will remain open to serve you by drive-thru only during normal business hours. You can call us with any questions at (248) 263-4100. (Our McNamara Branch is Temporarily closed)

When will People Driven Credit Union re-open branch lobbies?

As a community partner, we want to do our part to care for our members. As further information is available, we plan to follow CDC guidelines and best practices. At this time, we do not have an estimated date to re-open our lobbies. We’ll communicate this date/time as soon as possible!

Can I still open an account?

Absolutely. While we have adjusted how we serve you at our branches, you can open an account online anytime.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 1.

Visit Love My Credit Union Rewards to view all your perks such as discounts at Sprint, Trustage insurance and turbotax!

Loan-to-Value Ratio (LTV) is a measure of the amount of the loan compared to the appraised value of the property. It is calculated by dividing the loan amount by the appraised value or purchase price of the property, whichever is lower, and is expressed as a percentage.

How is LTV Calculated?

The formula to calculate LTV is:

Why is LTV Important?

• Risk Assessment: Lenders use the LTV ratio to assess risk. A lower LTV ratio means less risk for the lender because the borrower has more equity in the property.
• Interest Rates: Higher LTV ratios often result in higher interest rates because the loan is considered riskier.
• Loan Approval: Some loans have maximum LTV ratios. For instance, conventional loans typically require an LTV of 80% or less to avoid private mortgage insurance (PMI).
• Borrower Equity: The LTV ratio gives borrowers an idea of how much equity they have in their property. Higher equity can lead to better loan terms.

Typical LTV Ratios

• Conventional Loans: Generally, lenders prefer an LTV of 80% or lower.
• FHA Loans: These can allow for higher LTV ratios, often up to 96.5%.
• VA Loans: These can have LTV ratios up to 100%.

Impact on Home Equity Loans and HELOCs

For Home Equity Loans and Home Equity Lines of Credit (HELOCs), lenders often require a combined loan-to-value (CLTV) ratio, which includes the first mortgage and the home equity loan or line of credit. A typical CLTV requirement might be 85% or lower.

Understanding the LTV ratio is crucial for both lenders and borrowers, as it affects loan approval, terms, and the overall cost of borrowing.

If you cannot repay your HELOC according to the terms, you risk foreclosure on your home, as the property is collateral for the loan. It’s essential to borrow responsibly and within your means.

In many cases, the interest paid on a HELOC may be tax-deductible if the funds are used for home improvements or other qualifying expenses. Consult with a tax advisor to understand your specific tax implications.

Yes, there may be fees associated with a HELOC, such as an application fee, annual fee, closing costs, or early closure fee. It’s essential to review the terms and conditions of the HELOC agreement to understand the fees involved.

The amount you can borrow with a HELOC depends on factors such as the equity in your home, your creditworthiness, and the lender’s policies. Typically, you can borrow up to a certain percentage (e.g., 80-90%) of your home’s appraised value minus any outstanding mortgage balance.

HELOC funds can be used for various purposes, such as home improvements, debt consolidation, education expenses, major purchases, or emergencies. It provides flexibility to access funds when needed.

The interest rate on a HELOC is typically variable and may be based on an index, such as the prime rate, plus a margin determined by your creditworthiness. This means your payments can fluctuate based on market conditions.

The draw period is the initial period (typically 5-10 years) during which you can access funds from your HELOC and make interest-only payments. After the draw period ends, you enter the repayment period, in which you pay back both principal and interest.

Unlike a home equity loan, which provides a lump sum of money with fixed payments, a HELOC offers a revolving credit line with a draw period during which you can borrow and repay funds as needed. You only pay interest on the amount you borrow.

A HELOC is a revolving line of credit that uses your home as collateral. It allows you to borrow funds as needed, up to a predetermined credit limit, using the equity you’ve built in your home.

Loan-to-Value Ratio (LTV) is a measure of the amount of the loan compared to the appraised value of the property. It is calculated by dividing the loan amount by the appraised value or purchase price of the property, whichever is lower, and is expressed as a percentage.

How is LTV Calculated?

The formula to calculate LTV is:

Why is LTV Important?

• Risk Assessment: Lenders use the LTV ratio to assess risk. A lower LTV ratio means less risk for the lender because the borrower has more equity in the property.
• Interest Rates: Higher LTV ratios often result in higher interest rates because the loan is considered riskier.
• Loan Approval: Some loans have maximum LTV ratios. For instance, conventional loans typically require an LTV of 80% or less to avoid private mortgage insurance (PMI).
• Borrower Equity: The LTV ratio gives borrowers an idea of how much equity they have in their property. Higher equity can lead to better loan terms.

Typical LTV Ratios

• Conventional Loans: Generally, lenders prefer an LTV of 80% or lower.
• FHA Loans: These can allow for higher LTV ratios, often up to 96.5%.
• VA Loans: These can have LTV ratios up to 100%.

Impact on Home Equity Loans and HELOCs

For Home Equity Loans and Home Equity Lines of Credit (HELOCs), lenders often require a combined loan-to-value (CLTV) ratio, which includes the first mortgage and the home equity loan or line of credit. A typical CLTV requirement might be 85% or lower.

Understanding the LTV ratio is crucial for both lenders and borrowers, as it affects loan approval, terms, and the overall cost of borrowing.

A Second Mortgage is a loan that is secured by your home in addition to your primary mortgage. It allows you to borrow against the equity you’ve built up in your home.

A Fixed Term Home Equity Loan provides you with a lump sum of money, which you repay over a fixed period with a set interest rate. This makes your monthly payments predictable.

You can use a Home Equity Loan for various purposes, including home improvements, debt consolidation, education expenses, medical bills, or major purchases.

• Predictable Payments: Fixed monthly payments make budgeting easier.
• Lower Interest Rates: Generally lower than unsecured loans due to the home serving as collateral.
• Lump Sum: Access to a large amount of money upfront.

• Foreclosure: If you default on the loan, the lender can foreclose on your home.
• Increased Debt: Taking on a second mortgage increases your overall debt load.

The amount you can borrow is typically determined by your home’s equity, which is the difference between your home’s current market value and the balance of your first mortgage.

Interest on a Fixed Term Home Equity Loan is typically calculated as a fixed percentage of the loan amount, and it remains constant throughout the life of the loan.

Interest on a Home Equity Loan may be tax-deductible if the loan is used for home improvements, but it’s best to consult a tax advisor for specific guidance.

If you sell your home, you’ll need to pay off both your primary mortgage and your second mortgage with the proceeds from the sale.

Maximize your savings with potential tax deductions on the interest paid on your Home Renovation Loan. Consult with a tax advisor to explore the tax benefits available to you.

When applying for a Home Renovation Loan, prepare for your renovation journey by gathering proof of income, identification, and details about your planned renovation project.

Yes, you can conveniently apply for a Home Renovation Loan online through our website or by visiting one of our branches.

With our streamlined application process, approval for your Home Renovation Loan is fast and efficient, so you can start your renovation project without delay.

Enjoy flexible repayment terms of up to 84 months (7 years) with our Home Renovation Loan, giving you ample time to repay without straining your budget.

At People Driven Credit Union, you can secure up to $30,000 with our Home Renovation Loan, providing you with the financial flexibility to tackle projects big and small.

With a Home Renovation Loan, the possibilities are endless. You can revamp your kitchen, refresh your bathroom, upgrade your flooring, enhance your outdoor space, or even invest in energy-efficient upgrades to lower your utility bills.

You can use a Home Renovation Loan to fund a variety of home improvement projects, including:

• Kitchen or bathroom remodeling
• Flooring replacement
• Roof repairs or replacement
• HVAC system upgrades
• Painting and cosmetic enhancements
• Deck or patio installation
• Energy-efficient upgrades (e.g., new windows or insulation)

A Home Renovation Loan is the key to transforming your home into your dream space. Tailored specifically for home improvement projects, this loan allows you to access a lump sum upfront to bring your renovation plans to life.

You may give us a call at 248-263-4100 to speak with the loan department.

Yes!  All eligible loans can be skipped once per calendar year for a fee of $35.

Fresh Start Auto Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

An Educational IRA Certificate, more commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

Key Features:

1. Tax Advantages:
   • Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
2. Fixed Interest Rate:
   • Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
3. Term Options:
   • These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for when the funds will be needed for educational expenses.
4. Contribution Limits:
   • The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
5. Age Limits:
   • Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30s.
6. Qualified Expenses:
   • Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and in some cases, room and board for students enrolled at least half-time.
7. Transferability:
   • If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

Benefits of a Educational IRA Certificate:

• Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
• Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
• Wide Range of Uses: Funds can be used for a variety of educational expenses, covering primary, secondary, and higher education.

Considerations:

• Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
• Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
• Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

Educational IRA Certificates are Suitable For:

• Parents and Guardians: Those looking to save for their child’s educational expenses in a tax-advantaged way.
• Family Members: Relatives who want to contribute to a child’s education savings.
• Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

An Educational IRA Certificate is an excellent tool for families planning for future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

Key Features:

1. Higher Interest Rates:
   • Higher interest rates compared to regular savings accounts. The rates are typically variable, meaning they can change based on market conditions.
2. Tax Advantages:
   • Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
3. Flexible Terms:
   • These certificates may offer various term lengths, giving you the flexibility to choose a term that aligns with your retirement planning.
4. Liquidity and Access:
   • Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
5. Stable Investment:
   • They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
6. Contribution Limits:
   • The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs, set by the IRS.
7. Insurance:
   • Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

Benefits of a Money Market IRA Certificate:

• Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
• Higher Returns: Often offer higher returns than regular savings accounts while still maintaining a low level of risk.
• Flexibility: Typically more flexible than traditional CDs, with some allowing limited withdrawals.
• Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

Considerations:

• Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
• Contribution Limits: Be mindful of the annual contribution limits set by the IRS.
• Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

Money Market IRA Certificates Are Suitable For:

• Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
• Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
• Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

Key Features of a Traditional IRA Certificate:

1. Tax-Deferred Growth:
   • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
   • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
2. Fixed Interest Rate:
   • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
3. Terms and Maturity:
   • These certificates usually have specific terms ranging from a few months to several years.
   • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
4. Early Withdrawal Penalties:
   • Withdrawing funds before the certificate matures may incur penalties.
   • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
5. Contribution Limits:
   • The annual contribution limits are the same as for IRAs, set by the IRS.
6. Required Minimum Distributions (RMDs):
   • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

Benefits:

• Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
• Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
• Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

Considerations:

• Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
• Contribution Limits: Stay within the annual contribution limits set by the IRS.
• RMDs: Plan for required minimum distributions starting at age 73.

Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

Here’s a breakdown of the features of a a Roth IRA Certificate:

1. Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won’t get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
2. Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
3. Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
4. Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
5. Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
6. Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
7. Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
8. Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

People Driven Credit Union Money Market Savings Accounts are insured to at least $250,000 by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States Government.

A Money Market Savings Account is a type of savings account that typically offers higher interest rates compared to traditional savings accounts. It often requires a higher minimum balance and may provide limited check-writing capabilities.

An Educational IRA Certificate, more commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

Key Features:

1. Tax Advantages:
   • Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
2. Fixed Interest Rate:
   • Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
3. Term Options:
   • These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for when the funds will be needed for educational expenses.
4. Contribution Limits:
   • The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
5. Age Limits:
   • Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30s.
6. Qualified Expenses:
   • Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and in some cases, room and board for students enrolled at least half-time.
7. Transferability:
   • If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

Benefits of a Educational IRA Certificate:

• Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
• Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
• Wide Range of Uses: Funds can be used for a variety of educational expenses, covering primary, secondary, and higher education.

Considerations:

• Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
• Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
• Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

Educational IRA Certificates are Suitable For:

• Parents and Guardians: Those looking to save for their child’s educational expenses in a tax-advantaged way.
• Family Members: Relatives who want to contribute to a child’s education savings.
• Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

An Educational IRA Certificate is an excellent tool for families planning for future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

Key Features:

1. Higher Interest Rates:
   • Higher interest rates compared to regular savings accounts. The rates are typically variable, meaning they can change based on market conditions.
2. Tax Advantages:
   • Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
3. Flexible Terms:
   • These certificates may offer various term lengths, giving you the flexibility to choose a term that aligns with your retirement planning.
4. Liquidity and Access:
   • Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
5. Stable Investment:
   • They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
6. Contribution Limits:
   • The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs, set by the IRS.
7. Insurance:
   • Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

Benefits of a Money Market IRA Certificate:

• Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
• Higher Returns: Often offer higher returns than regular savings accounts while still maintaining a low level of risk.
• Flexibility: Typically more flexible than traditional CDs, with some allowing limited withdrawals.
• Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

Considerations:

• Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
• Contribution Limits: Be mindful of the annual contribution limits set by the IRS.
• Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

Money Market IRA Certificates Are Suitable For:

• Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
• Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
• Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

Key Features of a Traditional IRA Certificate:

1. Tax-Deferred Growth:
   • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
   • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
2. Fixed Interest Rate:
   • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
3. Terms and Maturity:
   • These certificates usually have specific terms ranging from a few months to several years.
   • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
4. Early Withdrawal Penalties:
   • Withdrawing funds before the certificate matures may incur penalties.
   • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
5. Contribution Limits:
   • The annual contribution limits are the same as for IRAs, set by the IRS.
6. Required Minimum Distributions (RMDs):
   • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

Benefits:

• Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
• Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
• Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

Considerations:

• Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
• Contribution Limits: Stay within the annual contribution limits set by the IRS.
• RMDs: Plan for required minimum distributions starting at age 73.

Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

Here’s a breakdown of the features of a a Roth IRA Certificate:

1. Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won’t get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
2. Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
3. Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
4. Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
5. Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
6. Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
7. Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
8. Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

A Certificate of Deposit is a secure and reliable savings tool that offers higher interest rates in exchange for committing your funds for a fixed period. It’s an excellent option for those looking to achieve specific financial goals with minimal risk.

Key Features of a Certificate of Deposit (CD):

1. Fixed Term: CDs have a specified term or maturity date, which can range from a few months to several years. Common terms are 6 months, 1 year, 2 years, or 5 years.
2. Interest Rate: CDs typically offer a higher interest rate than regular savings accounts. The rate is fixed for the duration of the term, providing a predictable return on investment.
3. Minimum Deposit: Many CDs require a minimum deposit to open, which can vary depending on the financial institution and the specific CD product.
4. Early Withdrawal Penalties: Withdrawing funds from a CD before it matures usually incurs a penalty, which can reduce or negate the interest earned. Some CDs offer more flexible terms with lower penalties or no penalties for early withdrawal, but these often come with lower interest rates.
5. FDIC/NCUA Insurance: CDs from banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), and CDs from credit unions are insured by the National Credit Union Administration (NCUA), up to the maximum limit allowed by law.

A CD (Certificate of Deposit) Ladder is an investment strategy that involves dividing a sum of money into multiple CDs with different maturity dates. The primary goal of this approach is to balance the benefits of earning higher interest rates on longer-term CDs while maintaining liquidity by having funds become available periodically. Here’s how it works:

How a CD Ladder Works

1. Divide Your Investment:
   • You start by dividing your total investment into equal parts. For example, if you have $10,000, you might divide it into five parts of $2,000 each.
2. Purchase CDs with Staggered Maturities:
   • Invest each portion in CDs with different maturities. For instance, you could buy a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD.
3. Reinvest as CDs Mature:
   • As each CD matures, you reinvest the principal (and interest, if desired) into a new CD with the longest term in your ladder. For example, when the 1-year CD matures, you would reinvest that amount into a new 5-year CD and continue this process as each CD matures.

Benefits of a CD Ladder

1. Higher Interest Rates:
   • Longer-term CDs typically offer higher interest rates compared to short-term CDs. By using a ladder strategy, you can take advantage of these higher rates for at least a portion of your investment.
2. Regular Access to Funds:
   • A portion of your investment will mature at regular intervals (e.g., every year), giving you periodic access to your money without penalty. This can be useful for meeting short-term financial needs or taking advantage of new investment opportunities.
3. Reduced Interest Rate Risk:
   • By spreading your investment across CDs with varying maturities, you reduce the risk of being locked into a low-interest rate for an extended period if rates rise. As each CD matures, you can reinvest at the current rates, potentially benefiting from higher interest rates.
4. Predictable Returns:
   • CDs are generally considered low-risk investments with fixed interest rates, providing predictable returns. This makes a CD ladder a stable and reliable investment strategy.

Example of a CD Ladder

Let’s say you have $10,000 to invest and you set up a 5-year CD ladder:

• Year 1:
  • Invest $2,000 in a 1-year CD
  • Invest $2,000 in a 2-year CD
  • Invest $2,000 in a 3-year CD
  • Invest $2,000 in a 4-year CD
  • Invest $2,000 in a 5-year CD
• Year 2:
  • The 1-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature according to their original terms.
• Year 3:
  • The 2-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 4:
  • The 3-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The other CDs continue to mature.
• Year 5:
  • The 4-year CD matures. Reinvest the $2,000 in a new 5-year CD.
  • The 5-year CD continues to mature.

By the end of Year 5, you have a ladder of 5-year CDs maturing every year, providing you with a regular income stream and the opportunity to reinvest at current interest rates.

A CD Ladder is an effective strategy to maximize returns while maintaining liquidity and reducing interest rate risk. It’s an excellent choice for conservative investors looking for a predictable and stable way to grow their savings. At People Driven Credit Union, we offer competitive rates and flexible terms to help you build a CD ladder that meets your financial goals. Contact us today to learn more about how you can get started with a CD Ladder and take control of your financial future.

Set Up a CD Ladder

An IRA CD works similarly to a regular CD. Your initial investment earns a fixed interest rate over a set timeframe and renews automatically. The more money you put in, the higher your rate will be, which means a more significant return on your investment. The main difference is that, unlike a regular CD, an IRA CD offers certain tax advantages associated with a traditional or Roth IRA.

Please give us a call at 248-263-4100 or toll free at 844-700-7328 and speak with a representative to assist you.

iTalk Telephone Teller is a free telephone banking service. Check your account balances, see if a check has cleared, transfer money between accounts, check your loan balance, make loan payments from checking or savings, or request a statement be mailed to you, etc.  Please dial us toll-free at 844-700-7328 or call us at 248-263-4100 and choose option 1.

An RD/USDA mortgage product, or a USDA Rural Development loan, is a home loan offered by the United States Department of Agriculture (USDA) to promote homeownership in eligible rural and suburban areas. These loans are designed to help low to moderate-income borrowers purchase homes in areas designated as rural by the USDA.

Here are some key features of RD/USDA mortgages:

1. No Down Payment Requirement: One of the most significant benefits of RD/USDA loans is that they typically do not require a down payment. Eligible borrowers can finance up to 100% of the home’s purchase price without a down payment, making homeownership more accessible.
2. Low Mortgage Insurance: RD/USDA loans have lower mortgage insurance premiums compared to FHA and conventional loans. This can result in lower monthly mortgage payments for borrowers.
3. Flexible Credit Requirements: While RD/USDA loans have credit score requirements, they may be more lenient than conventional loans. Borrowers with less-than-perfect credit histories may still qualify for an RD/USDA loan, provided they meet other eligibility criteria.
4. Income Limits: RD/USDA loans have income limits based on the area’s median income. Borrowers must meet these income limits to qualify for an RD/USDA loan. The income limits vary depending on factors such as household size and location.
5. Property Eligibility: RD/USDA loans are available for properties in eligible rural and suburban areas designated by the USDA. Borrowers can check the USDA’s Property Eligibility Map to determine if a specific property is eligible for financing.
6. Loan Limits: RD/USDA loans do not have strict loan limits like FHA and conventional loans. Instead, the loan amount is based on the borrower’s income and debt-to-income ratio, as well as the property’s appraised value.

Overall, RD/USDA mortgages provide a valuable financing option for eligible borrowers looking to purchase homes in rural and suburban areas. Borrowers considering an RD/USDA loan should consult with an RD/USDA-approved lender to determine if they meet the eligibility requirements and to explore their financing options.

A VA mortgage product is a home loan guaranteed by the U.S. Department of Veterans Affairs (VA) and available to eligible veterans, active-duty service members, National Guard members, Reservists, and certain surviving spouses. VA loans are designed to help veterans and military personnel achieve homeownership by offering favorable terms and features.

Here are some key features of VA mortgages:

1. No Down Payment Requirement: One of the most significant benefits of VA loans is that they typically do not require a down payment. Eligible borrowers can finance up to 100% of the home’s purchase price without a down payment, making homeownership more accessible.
2. Competitive Interest Rates: VA loans often offer competitive interest rates compared to conventional mortgages, helping borrowers save money over the life of the loan.
3. No Private Mortgage Insurance (PMI): VA loans do not require private mortgage insurance (PMI), even with a zero-down payment. This can result in lower monthly mortgage payments than conventional loans with less than 20% down payment.
4. Flexible Credit Requirements: VA loans have credit score requirements but may be more flexible than conventional loans. Borrowers with less-than-perfect credit histories may still qualify for a VA loan, provided they meet other eligibility criteria.
5. VA Funding Fee: VA loans may require a one-time funding fee, which helps offset the cost of the VA loan program for taxpayers. The funding fee varies depending on the borrower’s military status, down payment amount, and whether it’s the borrower’s first VA loan.
6. Loan Limits: VA loan limits vary by location and are based on the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Borrowers can use VA loans to finance properties up to the VA loan limits for their area.

Overall, VA mortgages provide a valuable financing option for eligible veterans and military personnel, offering benefits such as no down payment requirement, competitive interest rates, and no PMI. Borrowers considering a VA loan should consult a VA-approved lender to determine if they meet the eligibility requirements and explore their financing options.

An FHA mortgage product is a type of home loan insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to make homeownership more accessible to borrowers who may have difficulty qualifying for conventional mortgages due to factors such as lower credit scores or smaller down payments.

Here are some key features of FHA mortgages:

1. Low Down Payment: FHA loans typically require a lower down payment than conventional mortgages. Borrowers may qualify for an FHA loan with a down payment as low as 3.5% of the purchase price.
2. Flexible Credit Requirements: FHA loans have more lenient credit score requirements than conventional loans. While specific requirements may vary by lender, borrowers with credit scores as low as 500 may be eligible for an FHA loan with a 10% down payment. Borrowers with credit scores of 580 or higher may qualify for the minimum 3.5% down payment.
3. Mortgage Insurance: FHA loans require an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). The upfront premium can be financed as part of the loan amount, while the yearly premium is paid as part of the monthly mortgage payment. Mortgage insurance protects the lender in case the borrower defaults on the loan.
4. Loan Limits: FHA loan limits vary by location and are based on the median home prices in the area. Borrowers can use FHA loans to finance properties up to the FHA loan limits for their area.
5. Property Requirements: FHA loans have specific property requirements, including minimum property standards (MPS) established by HUD. These standards ensure that the property meets specific safety and habitability requirements.

Overall, FHA mortgages provide a vital financing option for borrowers who may not qualify for conventional mortgages due to credit or down payment constraints. Borrowers considering an FHA loan should carefully review the program’s requirements and consult a mortgage lender to determine if it fits their needs.

A conventional mortgage is a home loan not insured or guaranteed by the federal government. Unlike government-backed loans such as FHA, VA, or USDA loans, conventional mortgages are funded and serviced by private lenders, banks, credit unions, or mortgage companies.

Here are some key features of conventional mortgages:

1. Down Payment: Conventional mortgages typically require a down payment, with the amount varying depending on factors such as the borrower’s credit history, the loan-to-value ratio, and the lender’s requirements. While conventional loans may require a down payment of as little as 3% to 5%, a larger down payment can help borrowers secure more favorable terms, such as a lower interest rate or avoiding private mortgage insurance (PMI).
2. Credit Score: Conventional mortgage lenders typically have stricter credit score requirements than government-backed loans. While specific requirements may vary by lender, borrowers generally need a credit score of at least 620 to qualify for a conventional mortgage. A higher credit score can help borrowers qualify for lower interest rates and better loan terms.
3. Loan Limits: Conventional mortgages have maximum loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by location and are adjusted annually to reflect changes in home prices. Borrowers seeking to finance amounts above the conventional loan limits may need to consider jumbo loans, which have different requirements and typically higher interest rates.
4. Private Mortgage Insurance (PMI): If the borrower makes a down payment of less than 20% of the home’s purchase price, they may be required to pay private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. Once the borrower’s equity in the home reaches 20% or more, they may be able to cancel PMI, depending on the lender’s policies.
5. Fixed or Adjustable Rates: Conventional mortgages offer both fixed-rate and adjustable-rate options. With a fixed-rate mortgage, the interest rate remains unchanged for the entire loan term, providing predictable monthly payments. Adjustable-rate mortgages (ARMs) have interest rates that fluctuate over time, typically after an initial fixed-rate period.

Overall, conventional mortgages provide financing options for borrowers who meet the credit and income requirements established by lenders. Borrowers should shop around and compare offers from multiple lenders to find the best conventional mortgage product for their needs.

A Super Conforming mortgage is a mortgage loan that falls between the conforming loan limits set by the Federal Housing Finance Agency (FHFA) and the jumbo loan limits. In the United States, conforming loan limits are the maximum loan amounts that government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac can purchase or guarantee.

Conforming loan limits vary by location and are adjusted annually to reflect changes in home prices. They are also higher in high-cost areas.

Super Conforming mortgages are designed to accommodate loan amounts that exceed the standard conforming loan limits but are still within the limits set for high-cost areas. These loans typically offer the same terms and features as conforming mortgages, including competitive interest rates and fixed-rate options.

Here are some key features of Super Conforming mortgages:

1. Loan Limits: Super Conforming loans have loan amounts that exceed the standard conforming loan limits for the area but are still within the limits set for high-cost areas.
2. Eligibility Requirements: Borrowers must meet the lender’s eligibility criteria, including credit score, debt-to-income ratio, and other factors.
3. Competitive Interest Rates: Super Conforming loans often offer competitive interest rates compared to jumbo loans, making them an attractive option for borrowers who need larger loan amounts but want to avoid the higher rates associated with jumbo financing.
4. Down Payment Requirements: Down payment requirements for Super Conforming loans may vary depending on the lender and the borrower’s financial profile. However, borrowers typically need to make a down payment of at least 5% to 10% of the home’s purchase price.

Overall, Super Conforming mortgages provide an option for borrowers who need to finance higher loan amounts while benefiting from competitive interest rates and other favorable terms. Borrowers considering a Super Conforming loan should consult with their lender to determine if this type of financing is the right fit for their needs.

A construction mortgage, also known as a construction-to-permanent loan, is designed to finance the construction of a new home or major renovations to an existing property. This type of loan differs from a traditional mortgage because it funds the construction process rather than purchasing a completed house.

Here’s how a construction mortgage typically works:

1. Construction Phase: During construction, the borrower receives funds in stages or “draws” as construction progresses. These draws are typically based on milestones such as completing the foundation, framing and finishing work. The borrower pays interest only on the amount drawn during this phase.
2. Conversion to Permanent Mortgage: Once construction is complete, the construction mortgage is converted into a permanent mortgage, also known as an end loan. This permanent loan pays off the construction loan and becomes the borrower’s long-term mortgage for the completed home.

Construction mortgages can be structured in various ways, but they generally offer the following benefits:

1. Financing for Custom Homes: Construction mortgages provide funding for building custom homes tailored to the borrower’s preferences and needs.
2. Interest-Only Payments: During the construction phase, borrowers typically make interest-only payments on the amount drawn, which can help manage cash flow during the construction process.
3. Single Closing: Some construction-to-permanent loans feature a single closing, which simplifies the process and eliminates the need for borrowers to requalify for a mortgage once construction is complete.

However, construction mortgages also come with some potential downsides, including:

1. Complexity: Construction mortgages are more complex than traditional mortgages and may require additional documentation and oversight.
2. Potential for Cost Overruns: Construction projects can encounter unexpected delays and cost overruns, which may require additional financing or adjustments to the loan terms.
3. Higher Interest Rates: Interest rates on construction loans may be higher than rates for traditional mortgages due to the increased risk associated with financing a construction project.

Overall, construction mortgages can be a valuable financing option for borrowers looking to build their dream home or undertake major renovations. However, borrowers should consider the risks and benefits carefully and work closely with their lenders and builders to ensure a successful outcome.

A HomeReady mortgage is a type of home loan product offered by Fannie Mae, one of the government-sponsored enterprises (GSEs) in the United States. The HomeReady program is designed to make homeownership more accessible and affordable for low to moderate-income borrowers, particularly first-time homebuyers and those purchasing homes in underserved communities.

Key features of the HomeReady mortgage program include:

1. Low Down Payment Options: HomeReady mortgages offer low down payment options, allowing eligible borrowers to purchase a home with as little as 3% down. This can make homeownership more attainable for borrowers who may not have substantial savings for a large down payment.
2. Flexible Income Requirements: The program offers flexibility in income requirements, including allowing income from non-borrower household members, such as parents or other relatives, to be considered in qualifying for the loan. This can help borrowers with lower individual incomes qualify for a mortgage.
3. Affordable Mortgage Insurance: HomeReady mortgages typically offer lower mortgage insurance premiums than conventional loans, helping to reduce borrowers’ monthly housing costs.
4. Credit Score Flexibility: While HomeReady mortgages have credit score requirements, they may be more flexible than traditional loans, allowing borrowers with less-than-perfect credit histories to qualify for financing.
5. Homebuyer Education: Fannie Mae requires borrowers to complete an online homebuyer education course to qualify for a HomeReady mortgage. This course provides valuable information and resources to help borrowers navigate home-buying and become successful homeowners.

Overall, the HomeReady mortgage program aims to expand access to affordable homeownership opportunities for borrowers facing barriers to traditional financing. It offers flexible features and requirements to accommodate diverse financial situations while promoting sustainable homeownership.

A Home Possible mortgage is a type of home loan product offered by Freddie Mac, one of the government-sponsored enterprises (GSEs) in the United States. The Home Possible program is designed to make homeownership more accessible and affordable for low to moderate-income borrowers, particularly first-time homebuyers and those purchasing homes in underserved communities.

Key features of the Home Possible mortgage program include:

• Low Down Payment Options: Home Possible mortgages offer low down payment options, allowing eligible borrowers to purchase a home with as little as 3% down. This can make homeownership more attainable for borrowers who may not have substantial savings for a large down payment.
• Flexible Credit Requirements: The program offers flexibility in credit requirements, including allowing for non-traditional credit histories and considering alternative sources of credit, such as rental payments and utility bills.
• Affordable Mortgage Insurance: Home Possible mortgages typically offer lower mortgage insurance premiums than conventional loans, helping to reduce borrowers’ monthly housing costs.
• Income Limits: While Home Possible mortgages are targeted towards low to moderate-income borrowers, there are income limits based on the area’s median income. Borrowers must meet these income limits to qualify for the program.
• Homebuyer Education: Freddie Mac requires borrowers to complete a homebuyer education course to qualify for a Home Possible mortgage. This course provides valuable information and resources to help borrowers navigate home-buying and become successful homeowners.

Overall, the Home Possible mortgage program aims to expand access to affordable homeownership opportunities for borrowers facing barriers to traditional financing. It offers flexible features and requirements to accommodate diverse financial situations while promoting sustainable homeownership.

Fannie Mae and Freddie Mac are both government-sponsored enterprises (GSEs) created to provide stability and liquidity to the mortgage market, but they have some key differences:

1. Creation and Purpose:
   • Fannie Mae (Federal National Mortgage Association) was established in 1938 as a government agency but was later privatized in 1968. Its primary purpose is to provide liquidity to the mortgage market by purchasing and securitizing mortgages from lenders.
   • Freddie Mac (Federal Home Loan Mortgage Corporation) was established in 1970 to expand the secondary mortgage market and increase homeownership. Like Fannie Mae, Freddie Mac purchases mortgages from lenders and packages them into mortgage-backed securities (MBS) for sale to investors.
2. Regulation:
   • Fannie Mae and Freddie Mac are both regulated by the Federal Housing Finance Agency (FHFA), which oversees their operations, ensures their safety and soundness, and sets guidelines for their activities.
3. Ownership and Structure:
   • Fannie Mae and Freddie Mac have different ownership structures. Fannie Mae is a publicly traded company with shareholders, while Freddie Mac was also publicly traded until it was placed into conservatorship by the U.S. government in 2008 during the financial crisis. Since then, Freddie Mac has been under government control.
4. Product Focus:
   • While both Fannie Mae and Freddie Mac purchase and securitize a variety of mortgage products, they may have slightly different product focuses or guidelines. For example, they may have different underwriting standards or eligibility criteria for the loans they purchase.
5. Market Impact:
   • Fannie Mae and Freddie Mac are both significant players in the mortgage market and play a crucial role in providing liquidity and stability. Their actions and policies can have a significant impact on mortgage rates, underwriting standards, and overall market conditions.

Both Fannie Mae and Freddie Mac serve important functions in the mortgage market and have their strengths and weaknesses.

A Fannie Mae Fixed Rate Mortgage product refers to a type of mortgage loan that is originated, funded, and serviced by a lender but is ultimately sold to Fannie Mae, a government-sponsored enterprise (GSE) established to provide stability and liquidity to the mortgage market.

With a Fannie Mae Fixed Rate Mortgage, the interest rate remains constant for the entire term of the loan, offering borrowers predictability and stability in their monthly mortgage payments. These loans typically have terms ranging from 10 to 30 years, allowing borrowers to choose a repayment schedule that best suits their financial situation.

Fannie Mae Fixed Rate Mortgages are popular among homebuyers and homeowners who prefer the security of knowing that their mortgage payments will remain the same over time, regardless of changes in the broader economy or fluctuations in interest rates.

Similar to Freddie Mac, Fannie Mae does not directly lend money to consumers. Instead, it purchases mortgage loans from lenders and packages them into mortgage-backed securities (MBS) that are sold to investors. This process helps to provide liquidity to the mortgage market and promote homeownership by ensuring that lenders have the funds they need to continue originating new loans.

 
Create your credit score goal by selecting your desired credit score and the timeframe in which you want to achieve that your goal. Receive personalized recommendations and track your progress. Edit your goal at any time and receive messages when meeting milestones.
 
Are you ready to create, track, and achieve your credit goals? Download the MyPDCU app with Credit Score and Report today.

Yes, MyPDCU Credit Score & Score Simulator and all other features are available on mobile and tablet devices. They are integrated within People Driven Credit Union’s mobile banking application.

Yes, Members can easily choose when People Driven Credit Union contacts them. Navigate to the “Resources” tab, and then under “Profile Settings,” members can choose which email notifications they receive. MyPDCU Credit Score & Score Simulator sends out three types of emails: Credit Monitoring Alerts, General Messages, and Monthly Notices. Members will be automatically enrolled in all email communications and can easily unselect the specific email types they do not wish to receive.

Yes. Alerts are provided via the MyPDCU app, digital banking, and email. The user can update their email preferences for emails by navigating to “Resources” and the “Profile Settings” section.

MyPDCU Credit Score & Score Simulator will provide the following monitoring alerts:

• An account has been included in bankruptcy.
• An account is reported as delinquent.
• A fraud alert has been placed on the credit file.
• A previously derogatory account is now current.
• A new account has been opened.
• An account in your name shows a different address.
• An account in your name listed a new employer.
• A new inquiry on the credit file.
• A new public record has been reported.

No. Checking your MyPDCU Credit Score is always a “soft inquiry,” which does not affect credit scores. Typically, ‘Hard inquiries’ are used by lenders to make decisions about their creditworthiness when Members apply for loans. Multiple hard inquiries can lower a credit score.

Suppose a People Driven Credit Union member has no credit history and/or a low credit score. In that case, they will be shown educational articles or products that cater to those credit score profiles (if offered).

The MyPDCU App features a section with product offers and financial education articles. Based on their MyPDCU credit score information, Members may receive PDCU prequalified offers (invitation to apply) on products that may interest them. Sometimes, these offers may have lower interest rates than the products they already have or can save them money on their monthly payments. The educational articles are designed to provide helpful tips on how Members can manage credit and debt wisely.

The MyPDCU Credit Score is not intended to be comprehensive and may not provide all information about user accounts. We encourage Members to obtain free credit reports from www.annualcreditreport.com to look for incorrect information or discrepancies across all three bureaus. Each bureau has its process for correcting inaccurate information. Still, users can “File a Dispute” by clicking on the “Dispute” link within their PDCU Credit Report for more information about disputes. The Consumer Financial Protection Bureau website offers step-by-step instructions on contacting the bureaus and correcting errors.

People Driven Credit Union has implemented bank-level encryption and security policies to keep our users’ data safe and secure. People Driven Credit Union also has a sophisticated system that scans for and thwarts online bots, intrusions, and attacks. People Driven Credit Union’s policies and processes are reviewed annually by a third-party auditor and verified by multiple digital banking platforms’ Security and Compliance teams to meet their stringent security guidelines to keep both Members’ and financial partners’ data safe and secure.

No, People Driven Credit Union uses our own lending criteria when making final loan decisions and has no access to MyPDCU Credit Score & Score Simulator. However, through MyPDCU Analytics, we can see what Members view and engage with.

To transfer money from one account to another within the MyPDCU mobile/online banking experience, follow these steps:

1. Open the MyPDCU app or visit my.peopledrivencu.org and log in.
2. Click the “Transfer” button.
3. Select which of your accounts you wish to transfer money from.
4. Select which account you wish to transfer money to.
5. Type in the amount you wish to transfer.
6. Once you click submit, the transaction will be placed, there is no other confirmation required.
7. Once you see the green checkmark, you can click on “done,” or “Make another transfer.”

To log out of the MyPDCU app or online banking, follow these steps.

1. Use the menu bar in the upper left-hand corner of the MyPDCU app or online banking.
2. At the bottom of the menu bar, open the “^” popup next to your profile name.
3. Click on “Sign out.”

Gone are the days when you had to visit a branch to deposit your checks. With People Driven Credit Union’s mobile check deposit service, managing your finances becomes a breeze. This technology, known as remote deposit capture, lets you deposit checks from anywhere by simply snapping a picture with your device.

How Mobile Check Deposit Works:

1. Set the Stage: Place your check against a dark background to ensure all details are captured clearly due to the contrast.
2. Sign and Specify: Endorse the back of the check and write “For Mobile Deposit Only to PDCU” along with your clear signature and account number to streamline processing.
3. Open the MyPDCU App: Log in and select “Deposits.”
4. Enter the Check Details: Enter the check amount and select the account where you want to deposit it.
5. Capture the Check Images: Place the front of the check within the phone’s frame and tap the screen to capture an image. Repeat for the back of the check.
6. Verify the Deposit: Check your transaction history in the app to ensure the deposit was successful.
7. Secure Disposal: After confirming the deposit, cut up the check to secure your personal information. Dispose of the pieces separately.

The check will be deposited into the requested account and become available according to our standard check processing timeline. Past deposits can be viewed in the app.

For additional details, please visit our website at peopledrivencu.org/amazing or contact us if you have questions.

Embrace simplicity and security with our digital banking solutions. At People Driven Credit Union, we’re here to make your financial management effortless.

No!  Bill pay is free to use, unless you submit a rush payment or choose the option to send a gift payment.  Costs of these will be shown before submitting.

YES! Depending on your browser, once you have opened your statement you may see icons on the top corner for downloading and printing.  You may also right click on your mouse and choose ‘save as’ or ‘print’.

We suggest using a password only you would know. Do not save any passwords on devices that are not yours. Use facial recognition or thumbprint recognition on your private devices.

When preparing your tax return, you are asked to include the amounts of interest earned on your accounts. If your account earned $10 or more in the calendar year, a 1099-INT will be issued. 1099-INTs are typically mailed to you by the end of January in the new year. You can also access this in online banking; click the E-statement tab and choose ‘Tax statements.’

Bill Pay is a secure electronic service within online banking that allows members to pay bills without having to write checks or sign onto a vendor site to submit an electronic payment. Online bill payment is tied to your PDCU checking account from which funds are withdrawn electronically or via share draft for payment of one-time or recurring bills.

Yes. PD Quick Cash loans are only available for People Driven Credit Union members. Specifically, one must be a member in good standing, with direct deposit set up for at least three months.

Member will be defaulted to pay their monthly payments as auto-payments from their account.

The origination fee for a PD Quick Cash loan is a one-time cost for convenience and speed. It allows you to secure funds instantly without a traditional credit check. This is particularly beneficial when you need urgent access to funds without the usual wait times or paperwork involved in standard loan processing. It’s designed to be a fast, straightforward solution for immediate financial needs.

The origination fee varies depending on the loan amount requested:

• Loan Amount $500-$999: Origination Fee $12
• Loan Amount $1000-$1500: Origination Fee $25
• Loan Amount $1501-$2000:  Origination Fee $35

The interest rate reflects the unique features of the PD Quick Cash loan, such as no credit check and the ability to get funds immediately. It’s higher because it accommodates the increased risk associated with not performing a credit check. PD Quick Cash is ideal for situations where the convenience and speed of access to funds are priorities, and it’s primarily aimed at helping when unexpected expenses arise suddenly.

Using your credit card is a common choice for emergencies. However, the PD Quick Cash offers a structured repayment plan that could potentially have lower interest costs compared to high credit card interest rates, especially if the balance isn’t paid off immediately. Additionally, this loan provides a quick, predictable, and fixed repayment plan that helps manage your budget without the variable costs associated with credit card interest.

No. One of the benefits of PD Quick Cash is that it doesn’t involve a traditional credit check, which means it doesn’t directly impact your credit score. This can be a great option if you’re concerned about maintaining your current credit score while still needing access to emergency funds.

Although we do not run credit checks for the PD Quick Cash loan application, we do report payment history to the bureaus in hopes of helping our members repair or begin building credit with on-time payments.

To request a skip-a-pay on a People Driven Credit Union mortgage, please get in touch with your mortgage processor, who is currently servicing the mortgage payments.  If your mortgage application was processed by:

• Member First Mortgage call (866) 898-1818 OR contact a Payment Solution Specialist (248) 263-4100
• TowneMortgage (formerly known as Americu) call (888) 778-9700
• Mortgage Center call (800) 353-4449

CONTACT US

Who do I contact about signing a loan that is in process?

If you are already working with a Lending Specialist, they can walk you through signing your documents electronically. This can be done from within online banking. You can also reach out to us at (248)263-4100, and one of our specialists will be able to assist you.

Can I still apply for a loan?

Yes. While we have adjusted how we serve you, you can still apply for a loan or credit card online through our website.

I’m financially impacted by the Coronavirus and may be unable to make my next loan payment(s). What should I do?

Rest assured, we’re in this together and here for you. We will be here to provide the financial assistance you need. For starters, we’ve waived the fee on our Skip-A-Payment program, which allows members with eligible loans to skip up to two monthly loan payments so they can keep up with other financial responsibilities. You can complete our Skip-A-Payment form, complete the application in online banking under the services tab, or call us at (248) 263-4100.

Again, if you or your family are experiencing financial hardship because of the current public health situation, we can help; tell us what you need.

Will my online bill payment be posted as scheduled?

Yes. All online bill payments will be processed as scheduled.

Do I still have access to my funds if they come in through direct deposit?

Yes. Your funds will be deposited as expected. You can access your funds via online banking and the People Driven Credit Union app. You can withdraw cash at ATMs and through drive-thru service at local branch centers.

Who do I contact about card disputes and fraud?

Please call our Member Center at (248) 263-4100 and speak with a team member to dispute any charges or report fraudulent activity.

How do I get a replacement debit or credit card?

Call us at (248) 263-4100, and a team member will work with you to get a replacement card sent directly to you. We have recently added debit card controls inside our phone app.

Is my money safe?

Yes! Your deposits are safe. Your deposits are insured through the National Credit Union Administration (NCUA), which means you can keep your money here with complete confidence that it will always be here when needed.

I need to withdraw cash. What are my options?

Rest assured, just because our branch lobbies are closed does not mean you cannot access your money. Your cash may be withdrawn via drive-thru lanes during our regular business hours and by ATM 24/7.  To find a surcharge-free ATM near you, click here.

How do I deposit cash?

You can make cash deposits via drive-thru lanes during our regular business hours and at most ATMs.

How do I deposit a check?

You can make check deposits via drive-thru lanes during our regular business hours, at ATMs, and, most conveniently, via the mobile deposit feature of our mobile app.

Are People Driven Credit Union branches staying open?

We will remain open to serve you by drive-thru only during normal business hours. You can call us with any questions at (248) 263-4100. (Our McNamara Branch is Temporarily closed)

When will People Driven Credit Union re-open branch lobbies?

As a community partner, we want to do our part to care for our members. As further information is available, we plan to follow CDC guidelines and best practices. At this time, we do not have an estimated date to re-open our lobbies. We’ll communicate this date/time as soon as possible!

Can I still open an account?

Absolutely. While we have adjusted how we serve you at our branches, you can open an account online anytime.

A personal loan can impact your credit score in several ways:

• Positive Impact: Making on-time payments can improve your credit score.
• Negative Impact: Missing payments or defaulting on the loan can harm your credit score. Additionally, applying for a loan results in a hard inquiry, which may temporarily lower your score.

Personal loans can be used for a variety of purposes, including:

• Debt consolidation
• Home improvements
• Medical expenses
• Major purchases (e.g., appliances, electronics)
• Special events (e.g., weddings, vacations)
• Emergency expenses

Yes, it is possible to get a personal loan with bad credit, but it may come with higher interest rates and stricter terms. Consider lenders who specialize in bad credit loans, or use a co-signer to improve your chances of approval and secure better rates.

• Secured Personal Loan: Requires collateral (e.g., a car or savings account). Offers lower interest rates due to reduced risk for the lender.
• Unsecured Personal Loan: Does not require collateral. The interest rate is based on your creditworthiness and may be higher than secured loans.

A credit line allows you to borrow in increments, repay it and borrow again as long as the line remains open. Typically, you will be required to pay interest on borrowed balance while the line is open for borrowing, which makes it different from a conventional loan, which is repaid in fixed installments.  A line of credit will have a set limit in which you will be approved for and you can borrow based off the limit.

You may give us a call at 248-263-4100 to speak with the loan department.

PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!

Yes!  All eligible loans can be skipped once per calendar year for a fee of $35.

Fresh Start Auto Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.

1. To make a payment via online banking with funds already in your account, log in and select ‘transfers’. Select where you want to transfer from and which loan you would transfer to.
2. Log into iTalk (telephone teller) and make your payment. Option 3 for payments.
3. To make a payment with a debit/credit card, call (248) 263-4100.
4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

United Concordia Dental is pleased to serve the dental insurance needs of People Driven Credit Union members and their families. People Driven Credit Union and United Concordia are partners because we care about your and your family’s oral health.

Oral health problems often tax the immune system, exposing you to a greater risk of illness and infection. To help maintain a healthier smile and a healthier you, we encourage you to follow the advice of your dentist and the American Dental Association. Your dental plan emphasizes preventive care to help avoid costly procedures commonly caused by delayed treatment.

What plans are available? – People Driven Credit Union members have the choice of three plan options, including Concordia Plus MI 20 Series(DHMO), Concordia Plus MI 40 Series (DHMO), or Concordia Flex (FFS).

• Both Concordia Plus plans are managed care plans that require you to pre-select a primary dental office (PDO) from our Concordia Plus network for each of your covered family members and yourself. Each family member may select a different PDO. These plans reduce out-of-pocket costs as they feature no deductibles or annual maximum.
• Concordia Flex is a fee-for-service (FFS) plan that provides access to many practicing locations through our Advantage Plus network. Suppose your dentist does not currently participate in our network. In that case, you may still use your dentist, but your out-of-pocket expenses will likely be higher. Visiting one of our network dentists helps lower out-of-pocket costs and eliminates the need to fill out claim forms.

The plans include the Davis Vision Discount Program, which offers discounts on eye exams, eyewear, and laser vision correction. See the Davis Vision Discount Program flyer for more information.

How do I find a dentist? – If you would like to locate a participating dentist or check on the participation status of your current dentist, click on the button below:

• Search for a Concordia Plus Dentist

What if I have a question? – If you have a question about your dental benefits prior to being enrolled in the program, email United Concordia Dental Customer Service or call the appropriate toll-free Customer Service number. After you are enrolled, visit My Dental Benefits for online access to your benefits detail, claim history, claim status, eligibility information and more!

Visit Love My Credit Union Rewards to view all your perks such as discounts at Sprint, Trustage insurance and turbotax!

Download the official People Driven Credit Union account and prize entry rules

To report lost or stolen card you must call Visa directly at 800-325-3678. Visa Will contact People Driven Credit Union Daily to re-issue a new credit card. If there is anything else we can do for you please call People Driven Credit Union at 844-700-7328.

Wills and Trusts have a lot of overlap, but also a lot of differences.

Wills are simpler documents that let you name guardians for kids and pets, designate where assets go, and specify final arrangements. The simplicity of a Will does come with some drawbacks: a Will offers more limited control over the distribution of assets and often must go through a probate process after death.

Like a Will, a Trust also controls the disposition of assets but provides greater control over when and how your assets are distributed. Trusts only apply to assets held in the Trust, so you will need to transfer assets to the Trust. This makes a Trust a little more complex to set up, but it brings a major benefit. Trusts are also often used to minimize or avoid probate entirely, which can be a huge draw for many and justifies the additional work upfront needed to create a Trust.

Both are ways to say who will receive your assets – Each has different ways of distributing those assets, as well as different advantages and disadvantages.

Learn more about Trusts and Wills.

Yes! Online Estate Planning offers the same level of validity and function as its traditional counterpart, with added advantages (such as affordability and accessibility). By leveraging advanced technology alongside exceptional customer support, their services ensure a smooth experience from start to finish, simplifying estate planning for everyone. Trust & Will is the trusted estate planning partner of 100+ financial institutions across the US.

We are not a law firm, and we are not a substitute for a lawyer or a law firm. We cannot give legal advice, guidance, or services. No attorney-client relationship is formed by any interactions with us and information provided to us is not protected by the attorney-client privilege.

Most people complete a Will in 15 minutes, and a Trust in about 20 minutes. All your answers are saved as you go, so feel free to pause and come back to pick up where you left off at any time!