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Glossary

Get a refresher or learn new finance terms associated with Members 1st.

ACH

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments.

Ampre Debit Rewards

Ampre Debit Rewards is the Members 1st Credit Union debit card reward program. Ampre Debit Rewards are digital coupons from your favorite merchants loaded on your debit card. Ampre Debit Rewards notifications can be sent weekly or monthly via email or text informing you of the merchant offers available. Plus, Ampre Debit Rewards offers are delivered based on your previous transaction history, so offers are relevant and customized specifically for you. Member households with more than one debit card can link multiple debit cards to their Ampre Debit Rewards notifications. To view Ampre Debit Reward offers, members must register for Ampre Debit Rewards.

Annual Fee

Any fee that is charged on an annual (yearly) basis.

Application Fee

We here at Members 1st Credit Union are not familiar with this term and have no idea why someone would charge a fee for an account or loan application.

APR

The annual percentage rate (or APR) is the amount of interest on your total loan amount that you'll pay annually (averaged over the full term of the loan). A lower APR translates to lower monthly payments.

APY

APY refers to how much money you earn on a deposit over a year, taking into account compounding interest. For example, if you put $1,000 into an account for one year at 1.0% non-compounding, or simple interest, you will have $1,010 at the end of the year. The APY is 1.0%—the same as the interest rate.

ATM Surcharge

Automated teller machine (ATM) surcharges are additional fees imposed on consumers who use ATMs to withdraw cash. Unlike other ATM fees, surcharges are imposed directly at the ATM machine. Financial institutions usually impose ATM surcharges only on customers of other financial institutions, though some ATM owners impose surcharges on everyone. Members 1st Credit Union offers nearly 30,000 ATMs surcharge free through the U.S.

Audio Response

Audio Response is a free service which allows members to access their account information and process transactions using a touch-tone phone. See the Audio Response Guide for more information.

Balance Transfer

A balance transfer is where part or all of a debit balance (or debt) you owe to another lender is transferred from one credit card to another, usually to save money on interest rates. A balance transfer fee between 3-5% is usally assessed for conducting a balance transfer. However, Members 1st offers a promotional free balance transfer with the Members 1st Visa Classic credit card.

Cash Advance

A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to certain limit on your credit card. A cash advance fee between 3-5% is normally assessed for conducting a cash advance and interest begins accumulating daily on your cash advance. Most financial institutions charge a higher APR for cash advances upwards of 20%. However, Members 1st Credit Union reduces your cash advance APR to the same as your purchase rate APR, as low as 9.99%.

Certificates

A share certificate of deposit is a savings certificate entitling the bearer to receive interest. A share certificate bears a maturity date, a specified fixed interest rate and can be issued in any denomination of $1,000 or more. Share certificates are federally insured by the NCUA.

Check 21

Federal legislation, called Check Clearing for the 21st Century Act (Check 21), went into affect on October 28th, 2004. It allows financial institutions to process checks electronically.

Check Holds

A check hold denotes a period of time equal to the maximum number of days that a financial institution can legally hold the money from a check that was deposited. After this time it must credit the funds to the account of the party making the deposit. Some extended check holds are applied when members open a new account or deposit a check of a high dollar amount. For more information see the Members 1st Hold Policy.

Checking Account

A checking account is a transactional deposit account held at Members 1st that allows for withdrawals and deposits. Money held in a checking account is very liquid, and can be withdrawn using checks, automated cash machines and electronic debits, among other methods. Bank checking accounts typically charge a monthly fee or require a certain minimum balance or minimum transacation count; however, Members 1st checking accounts are 100% free with no monthly fees, no minimum balances, and no minimum transactions.

CLTV

Combined Loan To Value Ratio (CLTV) is the proportion of loans (secured by a property) in relation to its value. The term "Combined Loan To Value" adds additional specificity to the basic Loan to Value which simply indicates the ratio between one primary loan and the property value.

Co-Borrower

Any additional borrower(s) whose name(s) appear on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title.

Collateral Protection Insurance (CPI)

Collateral Protection Insurance (CPI) pertains to a situation that occurs when your vehicle insurance changes or lapses during the life of a vehicle loan you have with Members 1st Credit Union.

Compound Interest

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.

Courtesy Pay

Members 1st offers Courtesy Pay to all members with accounts in good standing. Courtesy Pay consists of a $500 line of credit to be drawn upon when funds are not available in the primary nor any back-up accounts to process a transaction. At that time the member's Courtesy Pay would pay for the transaction plus a one-time fee. This courtesy is extended to members to keep transactions from being declined and absorbing fees or other windfalls from the result of their transaction not posting.

Credit Card

A credit card is a revolving line of credit from which the cardholder can borrow money for payment to a merchant or as a cash advance. Any purchases or cash advances are subject to interest being charged. Credit cards can be a useful tool for earning rewards on your everyday purchases, utilizing a low interest rate to payoff large expenses, rebuilding damaged credit, or building new credit for a first-time borrower. For more information about the credit cards available from Members 1st, please visit our credit card comparison page.

Credit Worthiness

An assessment of the likelihood that a borrower can fulfill his or her loan (debt) obligations. It is based upon factors, such as his/her history of repayment and credit score.

Daily Periodic Rate

A daily periodic interest rate is calculated by dividing the annual percentage rate, or APR, by either 360 or 365. The resulting daily periodic interest rate is then used to calculate interest by multiplying the rate by the amount owed at the end of each day.

Debit Card

A debit card issued by Members 1st Credit Union allowing you to transfer money electronically when making a purchase in person, online, or by phone. Debit cards are valid for a period of 3 years upon which a new debit card will be sent to you to register and begin using.

Debt Consolidation

Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others. Common loans people want to consolidate are high interest credit cards and school loans. For more information visit the Members 1st Debt Consolidation loan.

Deductible

Deductibles are commonly used with insurance policies where the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses. In general usage, the term deductible may be used to describe one of several types of clauses that are used by insurance companies as a threshold for policy payments.

Direct Deposit

A direct deposit is the electronic transfer of a payment directly from the account of the payer to the recipient's account. Typically, this refers to electronic payments from an employer to an employee's credit union account. Visit our direct deposit form to setup direct deposit with your employer.

Dividends

A dividend is a sum of money paid regularly (typically monthly) by the credit union to its members based on the interest rate associated with your earnings. Dividends earned from interest rates applied to Savings, Checking, Money Market, Certificate, and IRA accounts are paid monthly.

Draw Period

A HELOC begins with a 2- or 5-year draw period, when you can access the funds in your credit line. During this time, you can make draws up to your credit limit as needed. The minimum payment during the draw period of a HELOC is interest-only, but you also have the option to pay down your HELOC at any time.

EMV

EMV is a global standard for credit and debit payment cards based on chip card technology, taking its name from the card schemes Europay, MasterCard, and Visa - the original card schemes that developed it. For a full explanation of EMV, view our EMV Tutorial.

eStatements

An eStatement is an electronic notification sent to your e-mail address the day your statement is available to view your statement electronically in Online Banking. Sign up for eStatements here.

FICO Score

FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus - Experian, TransUnion, and Equifax. Each score is based on information the credit bureau keeps on file about you and ranges from 300-850.

Fixed Interest Rate

A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast, are anchored to the changes to market interest rates.

Floor Rate

An interest rate floor is the minimum interest rate possible for an interest rate associated with a loan.

Foreign Transaction Fee

Foreign transaction fees are normally assessed by your debit or credit card issuer and are usually charged 3% percent of the purchase that you're making at a non-U.S. retailer. However, Members 1st does not charge foreign transaction fees for our debit or credit cards.

Home Equity Line of Credit (HELOC)

A home equity line of credit (often called HELOC) is a loan in which Members 1st agrees to lend an amount of money within an agreed period (called a term), where the collateral is the borrower's equity in his/her house (akin to a second mortgage). View the fixed and variable rate HELOCs available from Members 1st.

Home Value

Home values are calculated from sold prices, public records of assessed value, and area real estate information. While these estimates can help planning a real estate purchase or sale, you should always consult with a real estate agent or house appraisal specialist.

Index

The index rate is used as a benchmark to calculate the interest rate plus a specified margin on a loan. Members 1st commonly uses the 26-Week Treasury Bill as an index rate for most loans.

Insufficient Funds

Insufficient funds occur when someone tries to purchase an item using a check or debit card without having enough money in his or her credit union account. Members 1st offers two services to assist members with this occurrence. The first is Overdraft Protection where Members 1st can assign a back-up account to be drawn upon in times when your primary account does not have sufficient funds for a transaction. There is no charge from Members 1st for use of Overdraft Protection, a commonly charged service at most banks. Back-up accounts can consist of auxilary savings, checking, Visa credit cards, and HELOCs. The second service offered is Courtesy Pay, where Members 1st offers to all members (with accounts in good standing) a $500 line of credit to be drawn upon when funds are not available in the primary nor any back-up accounts to process a transaction. At that time the member's Courtesy Pay would pay for the transaction plus a one-time fee. This courtesy is extended to members to keep transactions from being declined and absorbing fees or other windfalls from the result of their transaction not posting.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding (balance or principal).

IRA Share Certificates

IRA Share Certificates shelter earnings from taxes until the depositor retires or withdraws the funds. They provide important tax advantages and are federally insured by the NCUA. Members 1st IRA Share Certificates are longer-term investments yielding a higher dividend than a Savings account. A wide variety of terms are available.

Late Fee

A late fee is assessed when the payment for a loan has not been received and the grace period has passed.

Lienholder

A lienholder is a party or individual who has a lien or claim on property, car, or other asset. The claim is created by an agreement, such as a mortgage or loan.

LTV

The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The term is commonly used by financial institutions to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.

MemBear Account

Our youth account for ages 0-12 consisting of a savings account and prizes for each deposit and gifts with every $500 deposited encouraging good savings habits.

Mobile App

The Members 1st Credit Union Mobile App provides account access from your smartphone to perform transfers, inquiries, pay bills, deposit checks, find your nearest branch or ATM. The Members 1st Mobile App can be downloaded from the Apple App Store and Google Play Store.

Money Market Account

The Members 1st Money Market Account is a type of savings account that earns a higher amount of interest than a savings account. A minimum balance is required for this account and money must be withdrawn in amounts of $500 or more.

NCUA

The National Credit Union Administration (NCUA), is an independent agency of the United States government that regulates, charters, and supervises federal credit unions. NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF). Visit our NCUA page for more information about the NCUA and your insured funds.

Not-for-Profit

Credit unions are "Not-for-Profit" financial institutions. "Not-for-profit" is another term for "nonprofit" except that credit unions do not conduct fundraising or solict donations to make income. Rather, credit unions earn interest on the loans they lend to provide income for the operations of the credit union. Another difference is that credit unions are required to maintain a minimum of 7% of their asset size in cash reserves to absorb potential windfalls, making a credit union a very secure place to keep your money. Visit the About Us page for more information about Members 1st Credit Union.

Overdraft Protection

Overdraft Protection can assign a back-up account to be drawn upon in times when your primary account does not have sufficient funds for a transaction. There is no charge from Members 1st for use of Overdraft Protection, a commonly charged service at most banks. Back-up accounts can consist of auxilary savings, checking, Visa credit cards, and HELOCs.

Phishing

Members 1st Credit Union will never send an e-mail to you asking you to log onto our website and update your personal information. This is a type of fraud known as "phishing". If you ever receive an e-mail that appears to be from Members 1st Credit Union asking you to update personal information on a website, please report the e-mail to us right away and do not respond to the request.

Prepayment Penalty

We here at Members 1st Credit Union are not familiar with this term. Why would a financial institution penalize you for making early payments? We certainly won't.

Private Party

A private party is an individual who owns a car and is selling it as opposed to a dealership selling a new or used vehicle. Members 1st can help you finance a vehicle purchased from a private party and provides helpful private party buying information at our Auto Loan page.

REG D Transfer

Reserve Requirements for Depository Institutions (or Reg. D) is a Federal Reserve Board regulation that limits the number of preauthorized withdrawals or transfers to six from a savings account or money market account. The regulation applies to all United States banking institutions offering such accounts.

Remote Check Deposit

Remote Check Deposit is available through the Members 1st Mobile App allowing you to deposit checks remotely without visiting a branch. Download the Members 1st Mobile App, endorse your check, enter your check information, and take photos of the front and back of your check. For more information visit our Remote Check Deposit page.

Repayment Period

When your HELOC draw period ends, you will no longer be able to access your funds and the 10- or 20-year repayment period on your HELOC will begin. During this time, you will pay back the outstanding balance of borrowed funds in addition to interest. Because your minimum monthly payment will include both principal and interest, it is likely to increase significantly, and could increase even more if the variable rate goes up. It's important to anticipate this change and budget for your line of credit repayment period accordingly.

Retirement Planning

Retirement planning is the planning one does to be prepared for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include such lifestyle choices as how to spend time in retirement, where to live, when to completely quit working, etc. Members 1st offers free financial planning consultations to all its members and can be found on our Financial Planning page.

Return Payment

A charge a member may assess if the member attempts to pay a credit card or loan bill with a check/ACH/Credit Card that is returned unpaid for having insufficient funds.

Routing Number

The Members 1st routing number is 321174738. A routing number is a unique identifier assigned to every financial institution and used for settling check and electronic transactions.

Savings Account

A Savings account is one of the simplest types of credit union accounts available to consumers, letting you store cash securely and earn interest on your money. Members 1st is a non-profit financial institution and all members are considered share holders, which requires a $1 minimum share deposit (counted as your share or stock in the credit union) upon opening up your Savings account. Open your savings account today.

Share

A Share refers to your $1 share deposit required when you open your Members 1st Credit Union account and acts as your share or stock in the credit union. Shares are fully refundable should you ever want to close your account.

Share Secured Visa Credit Card

The Members 1st Share Secured Visa credit card looks and works just like a regular credit card, except that a cash deposit of 120% of the credit limit available on the share secured credit card is secured in a savings account and acts as collateral for your credit card. The deposit can not be drawn upon while the credit card remains in the share secured state. Members use the share secured card to rebuild credit and offers a low interest rate with no annual fees. For more information visit the Share Secured Visa credit card page.

Shares

Credit unions refer to savings accounts as "share" accounts and checking accounts as "share draft" accounts. Shares and share draft accounts are a form of ownership. This means you are a partial owner of the credit union, while account owners are merely customers of banks, and have no ownership or say in how the bank conducts business.

Smishing

Fraudulent text messages sent claiming to be from your credit union or a known business is commonly referred to as ‘Smishing’. They might offer a gift card or falsely alert you to a problem in an attempt to get you to click on links leading to malware, viruses, and even identity theft. Members 1st Credit Union will only send unsolicited text messages to notify members of fraud. If you think your Members 1st account has been compromised, please contact us immediately.

Stop Payment (Electronic/Check)

A Stop Payment may be requested to place a stop on a check or ACH payment currently in process. Stop payments will remain in effect for 14 calendar days. If you wish to have a payment stopped for a longer duration, a Stop Payment Form must be signed and submitted.

Subaccount

Subaccounts or auxilary accounts are secondary savings account you can use to organize the funds within your savings account. Subaccounts may be requested by contacting Members 1st Credit Union.

Switch Kit

The Switch Kit is a tool members can utilize to help them track and transition their checking account from their former financial institution to Members 1st Credit Union. Switch Kits can be completed online at home or at a branch with a MSR. For more information, please visit our Switch Kit page.

Teen Tycoon

Our Teen Tycoon account is for minors ages 13-17 consisting of a checking or savings accounts and prizes for each deposit and gifts with every $500 deposited encouraging good savings habits.

Terms

A term is the duration of time you have agreed to repay a loan balance. In most cases, loans can be repaid quicker than the length of the term. Subsequently, loan terms can be extended upon request with a credit union loan officer on approval of credit.

26-Week Treasury Bill

A treasury bill (T-Bill) is a short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and commonly have maturities of one month (four weeks), three months (13 weeks) or six months (26 weeks).

Variable Interest Rate

A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).

Support

Helpful Tips

  • Use our mobile app to check your account balance and transfer funds
  • If your debit or credit card has been lost or stolen, please call us immediately
  • To report fraud on any of your accounts, please call us immediately
  • When traveling outside of your city or state, please call us or notify us online
  • Holiday Schedule
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