Savings Glossary

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ACCOUNT -- A share or deposit account at a credit union held by or offered to a member or potential member. The main account at DCCU is a share/savings account. Members can have a checking account, club account, IRA account, certificate account, money market account, etc. These accounts are a sub account under the main share/savings account.
ACCRUAL -- A term used to describe dividends that accumulate on a member’s account and paid to him/her on the date dividend is posted. (Ex.: Each day the interest being earned on the account accrues until it is paid to the member at the end of the dividend period.)
ANNUAL PERCENTAGE RATE (APR) --The annual rate of interest (Dividend Rate) the Board of Directors decides to pay on a particular savings account. If the member withdraws their dividend when it is posted each period, it also becomes the Annual Percentage Yield.
ANNUAL PERCENTAGE YIELD -- APY reflects the projected percentage increase on an account due to dividends (or interest) plus the effects of compounding. APY is calculated by assuming that funds remain in the account untouched for a full year.
ANNUAL PERCENTAGE YIELD EARNED -- APYE is the actual percentage increase on an account. APYE reflects the normal withdrawals and deposits on an account that may impact earnings.

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COMMUNITY CHARTER -- DCCU asked the State Corporation Commission to modify our industrial charter to a community charter. Therefore, we do not have select employee groups (as described under Field of Membership), but any person who lives or works, worships, attends school, has a business in the counties of Augusta, Bath, Highland, Rockbridge, Shenandoah and Rockingham, and the independent cities of Buena Vista, Harrisonburg, Lexington, Staunton, and Waynesboro, is eligible to become a member of DCCU.
COMPOUNDING -- Counting dividends or interest from the previous period as principle for the current period. Compounding produces dividends on dividends (or interest on interest), resulting in higher yields for the account.
CREDIT UNION NATIONAL ASSOCIATION -- CUNA is a trade association for credit unions that provide educational, marketing, and administrative duties regarding IRAs, etc.
CUSTODIAL ACCOUNT -- An account held by a custodian on behalf of someone else. Example at DCCU is: a savings account in the name of a child that has a custodian taking care of the funds under the Virginia Uniform Transfer to Minor Act.

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DAILY BALANCE METHOD -- Multiply the day’s balance by the daily periodic rate to find one day’s dividend.
DAILY PERIODIC RATE -- Divide the annual percentage rate by 365 days to find the daily rate.
DIVIDEND (INTEREST) -- The payment to a member or to a member’s account for the use of their funds.
DIVIDEND PERIOD -- The span of time established by the board of directors by the end of which shares in a member account earn credit. The dividend period may be different for each type of account.
DIVIDEND RATE -- The declared annual dividend rate paid on an account, which does not reflect compounding. This term replaces APR (Annual Percentage Rate).

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EDUCATION IRA -- This new IRA serves to help parents, grandparents or other adults save for children’s higher education. Parents, grandparents or any adult can make $500 annual, non-deductible contributions for children under age 18. Earnings accumulate tax-free and must be used for higher education.

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FEDERAL RESERVE BANK -- The central processing center for all checks and electronic transactions that are drawn on other financial institutions.
FIELD OF MEMBERSHIP (FOM) -- One of the unique characteristics of a credit union is field of membership. It is that select group of people and their families that make up the eligibility of becoming a member. In the beginning of DCCU, DuPont employees were the field of membership. See Community Charter for a description of our Field of Membership (FOM).

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GRACE PERIOD -- The span of time allowed to make changes to a certificate of deposit without penalty. DCCU’s grace period is fourteen days. During that time, a member may cash in a certificate, increase the dollar amount, or decrease the dollar amount without the fear of a penalty.

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INDIVIDUAL RETIREMENT ACCOUNT (IRA) -- An investment opportunity a member uses to save for retirement. It operates under different rules than our other savings accounts or certificates, i.e. penalty for early withdrawal and deposit amount limits. For this type of IRA, the member has the ability to deduct IRA contributions.

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JOINT ACCOUNT WITH SURVIVORSHIP -- Undivided ownership with rights to the survivor. If one owner dies, that account passes to the remaining owners and not the heirs.
JOINT ACCOUNT WITH NO SURVIVORSHIP -- Each person has an undivided interest, with right of inheritance upon his or her death.

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MEMBER (OWNER) -- A member purchases a minimum share in the credit union and this gives them ownership. The ownership in the credit union gives the member the right to vote and the right to use and enjoy DCCU’s services.
MEMBER SERVICE EXECUTIVE (MSE) -- Our employee who opens new accounts, certificates, Individual Retirement Accounts,Consumer Loans and other credit union products and services.
MINIMUM DAILY BALANCE -- The minimum balance to keep an account open and/or paying dividend. The minimum balance to earn dividends in a money market account is $1,000.

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NATIONAL CREDIT UNION ADMINISTRATION (NCUA) -- It is an independent agency of the U. S. Government, which regulates, charters and insures the nation’s federal credit unions and those state chartered credit unions that desire and qualify for federal insurance.
NATIONAL CREDIT UNION SHARE INSURANCE FUND (NCUSIF) -- The shares in DCCU are insured by the NCUSIF, an arm of NCUA. DCCU is required to deposit and maintain 1% of our insured shares in the NCUSIF. The member does not purchase this coverage.
NON SUFFICIENT FUNDS (NSF) -- Not enough money in the checking account to pay the checks and debits.
NOTARY PUBLIC -- DCCU has authorized different staff people to get a notary public commission. A Notary Public is authorized under state law to administer an oath. Every office has at least two notaries. The primary use is in the loan department as witness to legal documents. Also in Accounting a notary witnesses our members’ signature on an affidavit regarding forgery. A notary is not concerned with the content of the document, but that the parties signing the document swear that they are the person and that they understand what they are signing.

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POWER OF ATTORNEY -- A legal document the gives power to one person to act as the agent or attorney-in-fact on behalf of the person granting it. The POA can have limited powers or a general power. A power of attorney is valid only during the lifetime of the grantor, or until the grantor revokes the POA. Once the grantor and the attorney-in-fact sign the POA, the agent uses the “P.O.A.” designation after their name. Example: Mary Jane Smith By Harry V. Brown, POA Or, Power of Attorney
PAYABLE ON DEATH (POD) -- This is used when a member wants to elect a beneficiary to their account. The beneficiary would not be entitled to any funds until the death of the member.

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ROTH IRA -- The Roth IRA allows a taxpayer to make taxable contributions when he or she is in a low-tax bracket, accumulate the earning tax-free, and then take a qualified distribution tax-free when he or she is in a higher tax bracket.

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TAXPAYER IDENTIFICATION NUMBER (TIN) -- A number from the Internal Revenue Service for businesses and organizations. The normal sequence of numbers is 54-1234567 (nine digits). The TIN for individuals is Social Security number, which has the following sequence: 123-45-6789 (nine digits).
TIERED RATE -- An account where different rates are paid for different balance levels. DCCU’s IRA share account is a tiered rate account. Up to $999, we pay the same rate as the one-year certificate that is declared on the first day of each quarter. Once the balance exceeds $1,000, the whole balance earns the same rate as level one plus .40%.

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VIRGINIA CREDIT UNION LEAGUE (VaCUL) -- Our state-wide support network which includes our credit union’s account, and services like wire transfers, education, legal interpretations, training, etc.
VIRGINIA UNIFORM TRANSFER TO MINOR ACT (VUTMA) -- This designation placed on a minor’s account restricts the minor from using the account. The minor has no access to the funds. The custodian has the legal responsibility for the account. The custodian must keep records of expenditures from the account and that the funds were used on behalf of the minor. This account can be restricted until the minor reaches either 18 or 21 years old.

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www.mydccu.com -- This is the web site address for DuPont Community Credit Union. It contains our Home Page, Products, Rates, What’s New, Additional Pages, etc. We are always looking to add new features to our website.

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