Project Differentiation

US FEDERAL CREDIT UNION

As a member-owned, not-for-profit financial cooperative, US Federal Credit Union is committed to its members. We will uphold our fundamental responsibility to actively serve people within our field of membership, and as appropriate, the communities they live in. We will treat all members with respect and dignity and we will offer honest, fair deals to all members at all times. We will deliver a range of low cost products and services to the diverse economic and social make-up of our members and potential members. We will look for better ways to reach out to the un- or underserved in our field of membership. And we will continually, in all facets of operations, demonstrate the value of membership in US Federal Credit Union.

We will monitor and communicate our service to members in a meaningful way so that members, potential members, legislators, regulators and the community at large will understand and appreciate the unique role that member-owned financial cooperatives play in their lives.

Throughout US Federal Credit Union's strategic plan, we will put forth every effort to enable our members to become financially self-sufficient and successful. We will place high importance on consumer education and the teaching of financial thrift.

This Statement of Commitment to Members is consistent with our credit union principles of "Not For Profit, Not For Charity, But For Service" and our philosophy of "People Helping People." This statement represents good business practices that ensure the financial strength of our credit union on behalf of our members.

Section 1: Service to Members

US Federal Credit Union strives to offer services designed to improve the economic and social well being of all members from all socio-economic backgrounds, including our low- and moderate-income member, and return financial value to those who participate in our member-owned financial cooperative.

Current Services that Help Improve the Economic and Social Well Being of Members:

No fee checking accounts to members through age 24 and to members age 60-plus. On both types of checking accounts the credit union continues to pay above market dividend rates.
No fee regular savings accounts to all members: no minimum balance requirements and no monthly service charges. In addition, eligible members are required to make low Share (ownership) account deposits of only $5 to join the credit union.
Christmas saving accounts encourage members to save for seasonal holiday expenses rather than use debt.
Payment Shaver loan program that can reduce the monthly payments by up to 30% on a new or used car loan when compared to conventional financing.
Members Financial Services (PLAN AMERICA) program to assist our members with financial and retirement planning, investment advice and services and insurance needs (such as long-term care).
Members Prime Club for members age 50 and over. For only $20 a year the Club account includes no monthly service charge, free checks, discount eye wear and pharmacy services and a $1,000 AD&D insurance policy.
Government insured student loan program to help members with post high school educational expenses.
First-time homebuyers mortgage loans with no or low down payment requirements and flexible qualifying terms.
Individual retirement accounts (IRAs) with no minimum balance requirements are available to eligible members, including the new Roth and Education IRAs.
Low-interest Visa credit card accounts are available with lines of credit starting at $500 to assist first time and low income members meet qualification guidelines.
Direct deposit and payroll deduction services are promoted to encourage thrift and support the advantages of this deposit service (earn more dividends, save interest on loan payments, etc.)
Member surveys to measure member satisfaction, provide insights into potential new services and improve member services and products.

New Services Planned for the Coming Year:

Sweep accounts for members conducting trades on securities accounts.

Section II: Member Education

US Federal Credit Union is committed to member and consumer financial education; in addition we are committed to educating members and consumers, alike, about credit union uniqueness, philosophy and values.

Current Programs that Support Member Education and Advocacy:

Home buying seminars that educate members on the qualifying and purchasing process.
Financial planning seminars every quarter at full-service offices covering many current financial issues.
Quarterly member newsletter articles that cover Y2K issues and financial education topics.
Web site that hosts financial calculators, links to Members Financial Network (MFN hosts an extensive consumer financial library and financial calculators in addition to online discount brokerage services.)
Car buying service affiliate that provides members with dealers' cost information, car searches and purchasing services for a low mark-up over dealer cost.
All new employees attend orientation sessions that emphasize the uniqueness of credit unions compared to other types of financial service providers.
Management employees are encouraged to earn the Certified Credit Union Executive designation which requires completing 10 courses in credit union philosophy, history and operations.
All board members are required to complete the CUNA Volunteer Achievement Programs (VAP) to enhance their knowledge on credit union philosophy and operations.

Section III: Involvement/Governance

US Federal Credit Union will endeavor to preserve credit union democratic principles, including demographic representation and volunteer participation in credit union activities.

Current Programs that Support Involvement/Governance:

The credit union runs annual board elections for at least three vacancies by mall ballot stressing full participation.
A nominating committee is appointed annually to search for and screen potential candidates for board vacancies.
The credit union promotes member involvement in board elections through its newsletter.
Members of the board serve on committees that encourage volunteer/member participation.
The credit union board appoints volunteer members to serve on the Supervisory Committee.
The credit union board has set attendance standards to ensure the commitment and participation of its members.
Annual meetings are promoted in the credit union newsletters and notices are mailed to members. Annual meetings are used to promote credit union participation, philosophy and issues.

Section IV: Diversity

US Federal Credit Union recognizes the value of demographic diversity in staff as well as in volunteers, and will strive to bring people of diverse backgrounds and experiences into leadership and other roles at the credit union.

Current Programs that Promote Diversity:

The credit union works with different Chambers to give youth employment opportunities during summer (Voyager Program).
The credit union is an Affirmative Action employer and Equal Employment Opportunity workplace. The credit union has policies in place to support both initiatives.
The credit union board strives for diversity in make up and representation of member groups.

Section V: Commitment to the Credit Union Movement and other Cooperative Activities

US Federal Credit Union will work to build and strengthen our unique credit union movement by providing financial and in- kind resources to others within the credit union community, and by actively advocating the credit union difference at all levels of government and in other appropriate public forums. In addition, US FCU will participate in local, state and national cooperative activities as appropriate, and will strive to build and strengthen relationships with other sectors of the national cooperative movement.

Current Activities that support the Credit Union Movement:

Member of the Minnesota Credit Union Network (MCUN) and supporter of other credit union state trade associations in states where US Federal offices are located.
Founding and sustaining member of the Filene Research Institute that conducts independent research on critical issues that affect credit unions today.
Promote and financially support legislative activities on state and national levels that further the credit union cause. As an example, US Federal backed the Credit Union Campaign for Consumer Choice to ensure consumers had the right to choose a credit union for service.
Provide developmental support to small credit unions with low or no interest deposits:
Agassiz CU ($100,000 at 0% interest); Ashby FCU ($50,000 at 2%); Phillips Neighborhood CU ($50,000 at 0%). Also assist the Latvian CU with corporate monetary services.
Supporter of the Credit Union Foundation's People-To-People Program that promotes credit union development worldwide.
Contributor to MCUN cooperative advertising program.

and other Cooperative Activities:

Member of the Credit Union Shared Service Center Network that provides cash services to members on a national basis.
Employees work in political campaigns for politicians who support credit union issues.
Disaster and flood relief fund raising and donations to assist credit unions and their affected members.

Section VI: Public Service / Corporate Citizenship

Through direct financial support or other in-kind contributions to worthwhile local organizations, and by participating in public service activities, US Federal Credit Union strives to be an active partner in our community. We recognize that practicing good Corporate Citizenship supports the Credit Union Philosophy of People Helping People; furthermore, it will help raise the overall level of social and economic well being of those in our community, help to strengthen ties within the community and better position us to reach out and serve - as only credit unions can - those people in greatest need of affordable financial services.

Community Groups Currently Receiving Financial or Other In-Kind Support (including the support given) and Current Public Service Activities:

Children's Miracle~Network - Gillette Children's Hospital
Super Cities Multiple Sclerosis Walk
Combined Federal Campaign (United Way)
Minnesota Food Share
Hennepin County Social Services - Adopt-A-Family
Meals on Wheels.
The Sunshine Club outreach to residents in nursing homes