Recently there has been a great deal written about the end of the free checking account for consumers. Websites, magazines and newspapers have all but buried the free checking account. Luckily, to paraphrase Mark Twain, the death of the free checking account has been greatly exaggerated. Free checking accounts are alive and well at most credit unions.

It is true, however, that the free bank checking account is clearly headed toward extinction. According to a survey by Bankrate.com only 45% of even non-interest checking accounts today are free, down from 65% in 2010 and 76% two years ago. To qualify for a free checking account today from one of the banking behemoths you have to jump through way too many hoops – keeping a large sum of money in a related savings account, using your Debit Card a certain number of times per month, or requiring direct deposit are just a few examples. So what happened to the free checking account at banks?

Until recently the checking account has been a loss leader for the banking industry. Years ago if you opened a checking account you usually even walked out with some free stuff – a toaster or some other small gadget. Banks wanted your checking account because, while the account itself may not make money, it helped bring the rest of your business – savings account, credit card, home and auto loan. Making money on a checking account by charging exorbitant fees really wasn’t necessary.

Why did it all change at banks? The answer is plain and simple. Greed. Banks are for profit institutions that try to make a tidy return for their shareholders. As the default rate on loans has increased during this latest economic downturn and the rate environment has become less conducive for huge profits, banks have had to find other ways to increase income. If that means charging unnecessary and outrageous fees to their customers then so be it. Today, banks will charge a fee for just about anything – monthly maintenance fees for checking and savings accounts, ATM usage and balance inquiry fees, transfer fees from savings or your line of credit to cover a check, and the latest and possibly most egregious, the monthly fee for using your Debit Card. Take a look at the fee schedule of any of the giant banks and you will be shocked at all the different fees they have invented to take away your hard earned money.

Yet banks always try to justify the fees they charge for their products. Take ATM fees for example. Banks claim they are needed to cover of the high cost of maintaining the ATMs. However, the average fee for using a bank ATM is now over $3.80 a pop according to BankRate.com. For a fifty dollar withdrawal that is over a 7% surcharge just to access your own money. While it is understandable to charge a small fee to cover the cost of doing business, nearly $4 per transaction borders on usurious.

The latest fee the banks are attempting to justify is the above mentioned monthly fee for using a Debit Card. Legislation that went into effect on October 1 cut almost by half the fee income that financial institutions receive when the customer swipes a Debit Card to make a purchase. Before the new legislation every time somone used a Debit Card the bank or credit union would receive on average 44 cents from the merchant. Now it is only around 22-24 cents. To make up for this lost income the banks had to invent another fee to charge. Hence the monthly charge of up to $5 for using a Debit Card that many banks have instituted, most notably Bank of America.

So how do you avoid all these fees and still get a free checking account with all of the bells and whistles? Open an account at your local credit union. Credit unions are not for profit cooperatives that exist to serve their members – not make a profit for shareholders.

For example at Members we offer a fee free checking account with no strings attached. We don’t give you a toaster when you open a checking account at Members Credit Union. Instead, you get a lot of valuable free services with our checking account package. We’ll give you a Visa Debit Card with an automatic line of credit up to $500 for overdraft protection. You can use your Visa Debit Card to make purchases and ATM withdrawals without incurring any fees from Members Credit Union. You’ll have the option to use our electronic bill pay service at no charge. You can write unlimited checks and make unlimited withdrawals when you visit one of our branches. We won’t charge you if you transfer money from your savings account or line of credit to cover a check. And you don’t have to keep a certain amount of money in a related savings account or have any other account relationship with us to qualify for free checking. All we ask is that you have at least $25 in your account on the last day of the month to avoid a $3 low balance charge.

Free checking accounts do still exist. You just have to know where to look – at your local credit union.

Recently I was watching television and a car ad came on that just seemed too good to be true. “0% financing for 60 months!” “No money down! Come see us and you can be driving a new car home today.” And it really got me to thinking about advertising and how a great deal on a TV commercial may not be such a great deal after all.

Let’s take for example that 0% financing deal. Sounds great right? You don’t have to pay any interest on your loan. However, what the ad doesn’t tell you is that 9 out of 10 applicants won’t qualify for that 0% rate. Granted, in the fine print at the bottom of the ad that even the fastest speed reader in the history of the world couldn’t finish, it does say that not everyone qualifies for the 0% rate. If you have a credit score higher than the national debt you just might get the 0% rate. But even that is sometimes not such a great deal since you will just about always pay close to sticker price and forfeit any offered rebate to get the 0% rate. Plus, the term of your loan may be limited, making your payment astronomical. Usually taking the rebate and financing with your credit union is really the better deal. And don’t even think about trying to get a 0% rate on a used vehicle because it will never happen.

So what if you are one of the 90% that doesn’t qualify for the 0% financing rate? You are already at the dealership, have driven the car and are ready to buy. When the salesman says you don’t qualify for the 0% rate because your credit score is not high enough (this could never happen to you at Members Credit Union because our loan rates are not linked to credit scores) your disappointment is palpable. Although you can’t get the 0% rate the salesman promises to do everything possible to make sure you drive home in a new car. He asks how much you think you can afford per month and he goes to talk to his manager or F&I (finance and insurance) guy. Fifteen minutes later the salesman returns and miraculously, after a lot of number crunching by the F&I guy, something close to the payment you said you could afford is presented. You see the rate is closer to 12% than 0% and the term is longer than you wanted. However, the payment is only about $20 more than what you told the salesman you could afford and you really like the car so you sign the paperwork and away you go.

A week or so later, after the euphoria of driving your new car has started to wane (the technical term is post purchase dissonance), you take a look at your paperwork and see that what you thought was a great deal maybe wasn’t so great after all. You are locked into a high rate for a longer term than you wanted and you notice add-ons for a credit life insurance, an extended warranty, and GAP insurance. If you have fallen into this all too familiar trap give your local Members Credit Union loan officer a call to see how we can extricate you from your high interest loan and overpriced warranty and GAP coverage.

Remember what sounds like a great deal may not be such a great deal after all. I can speak from experience about things that look great but maybe aren’t so good. Right after the car commercial the Magic Bullet infomercial came on and I ended up buying four of them. Anybody need one? I’ll make you a great deal!

There is no denying that it has been a rough couple of years for dividend rates at financial institutions all across the country. I am constantly asked when savings rates may start to rise again. Unfortunately I don’t have a crystal ball that will predict the future. If I did I would have already won the lottery or made a killing in the stock market and wouldn’t be writing this blog.

Let’s face it returns on savings just aren’t very good right now. Even here at Members Credit Union, where rates exceed most other financial institutions, our Money Market account only pays .50% APY. That means if you have an average daily balance of $1,000 you will earn about 41 cents per month (less than a can of soda from a vending machine) or $5 a year, barely enough to buy a cup of joe at your favorite local coffee shop. However, compare us to other financial institutions and we come out smelling like a rose. Money Markets are as low as .02% in some banks. A $1,000 balance will earn you a whopping whole twenty cents over a year. I mean really what is the point? You can find more than those two dimes in your couch cushions over a year’s time.

I read other blogs and articles all the time about how everyone needs to save more and I agree to a point. Don’t get me wrong I think saving is a good thing and everyone should have an emergency fund of at least three months living expenses in a savings or money market account. But, if you are carrying a ton of debt you may want to consider using some of your savings to pay off high interest rate loans and forget about saving for a while. I know people will read this post and say I have gone stark raving mad. No CEO of a financial institution tells its members to stop saving. Bear with me and you just may see my point.

Let’s say you have a $1,000 balance on a credit card with 18% interest and you want to pay it off in a year. You can make 12 monthly payments of $91.68 and get the job done. However, you will pay $100.16 in interest. Instead take your extra $1,000 savings in your money market account and pay the loan off immediately and start putting the $91.68 a month you would have paid on your credit card back in your money market. You save a hundred bucks in interest right off the bat by paying off the loan and you will have $1,100 in your money market account at the end of the year. When savings rates are so low and you have high interest rate debt you can see you may be better served to pay off debt first. Actually by paying off your debt rather than keeping your money in that .02% money market account you are 49,980% better off!

It is simple to devise a plan to make yourself debt-free. Consider using savings and whatever disposable income you have to start paying down your debt. Start with your highest interest rate loan first and pay it off while making minimum payments on your other obligations. After the highest rate loan is gone move on to the next highest rate loan. Keep it up until you have gotten rid of all those credit cards and high interest rate loans. It may take you several months or even a couple of years to get your debts paid off. Trust me it will be worth it to be debt free. And when rates do go back up you can put all of the extra money you have from paying off your loans into a savings account.

A year ago we reported on an economy that was on the ropes, the housing market in a tailspin, unemployment near double digit levels and multiple bank failures. 2010 brought very little change to this bleak financial picture. The economy is still trying to regain traction and move forward, home values are still not anywhere close to pre-recession levels, unemployment remains high (although there have been recent signs of improvement.) The year saw 157 bank failures compared to 140 a year ago.

Through this economic uncertainty, the credit union’s Board opted for a cautious approach and steered a steady, conservative course in 2010. We continued our policy of making sound and safe investments, avoiding risky ventures that promised unrealistic returns. Our Rate Committee approved dividend and loan rates that were very competitive in the marketplace without unnecessary strain on our balance sheet. And, as always, we managed expenses and controlled expenditures, all without reducing the level of service to our members.

A leading indicator of a credit union’s financial strength and stability is its Capital to Asset ratio. The credit union ended 2010 with a very respectable capital to asset ratio of 9.96%, much greater than the 7% range that is considered well capitalized. A strong capital to assets ratio is vital to the success of the credit union allowing us to overcome unexpected assessments and expenses.

Despite the slow economic recovery, Members Credit Union experienced gains in both assets and deposits in 2010, albeit not at the robust level of 2009. Assets increased 3.47% to $233 million while deposits rose 3.4% in 2010 to just under $210 million.

The largest increase among all of our account offerings occurred in our Super 60 Account which rose 20.6%. Our other core deposit products also increased but at a much slower pace. Our time deposits, or share certificates, actually decreased 3.65%. Many of our time deposits were not renewed at maturity, but instead were transferred into more liquid accounts such as our Super 60 Account with hopes that certificate rates may rise in the coming year.

While assets and deposits grew in 2010, our loan portfolio fell 5.8 million dollars, or 5.55%, the sharpest decline since a 6% drop in 1992. During the economic unrest of the last three years, our loan portfolio has decreased over $10 million. Ongoing weak demand for loans is a concern throughout our industry and not a problem specific to Members Credit Union. The credit union’s rates and terms are competitive with other lending institutions yet the demand for loans among our membership is extraordinarily low. Our members are “hunkering down” and waiting for the economy to rebound and employment to stabilize. Since the credit union’s purpose is to help our members attain their financial goals, we do not use teaser credit card rates or other misleading offers to entice our members to incur unnecessary debt just to increase our loan totals. Instead, we offer affordable rates that allow members to receive loans at a reasonable cost when and if they need to do so.

Our loan production does affect the credit union’s bottom line. Currently our loan to share ratio is less than 50%, a percentage that we would like to improve. Money that is not loaned to the membership is instead invested. In the present rate environment, the return on invested money is much lower than the average return on money loaned, therefore decreasing our interest income.

Losses stemming from non-performing loans could also negatively affect earnings in the short term. To date our loan delinquency rates have remained well within an acceptable range. Our Financial Solutions Department has worked diligently to create manageable payment arrangements with many of our members who have fallen behind on their loan obligations. Unfortunately, as was the case last year, we are still faced with a large number of vehicles that have been returned to, or repossessed by, the credit union when a payment agreement could not be reached.

Decreasing loan volume and potential loan losses are not the reasons we did not meet our net income expectations for the year. We fell short of anticipated net income levels because of extraordinary expenses of over $500,000 that were levied to assist in the continued stabilization of the credit union industry. These payments were made to replenish the National Credit Union Share Insurance Fund, which is the body that insures member’s deposits up to $250,000, and also to reinforce the corporate credit union system. These assessments, necessary to keep our industry strong, could adversely affect the dividend and loan rates offered to members and the credit union’s earnings for many years to come. Without these assessments, our projected budgeted net income would have easily been reached.

Just as in 2009, the absence of growth in our membership totals in 2010 is difficult to understand. Despite the addition of several large employee groups – including Hugh Chatham Memorial Hospital and G&B Energy in Elkin, CV Products in Thomasville, Trinity Furniture in Trinity, Edwin Farrell/Lewis Mittman Furniture in High Point, and Kellex Co. in Valdese – membership declined 1.4% in 2010. At a time when many other financial institutions are finding inventive new ways to raise fees and eliminate free checking accounts, the benefit of Members Credit Union membership has never been greater. Our checking account remains fee free as do many of our other services, such as our electronic bill pay and home banking products.

The value of credit union membership can be seen through various media channels – radio, billboards, television, social media, internet, and newspapers – and this awareness campaign will continue in the coming year. We recognize that media promotion alone will not increase our membership totals. In order to stand out in a very crowded field of financial service providers, we must offer unsurpassed service and a never ending commitment to improving our members’ financial well being.

The impact of social media on the future growth of credit unions is undeniable. Social media sites such as Facebook allow members to open a conversation with the credit union to voice opinions, ask questions, or offer suggestions. One of the most significant changes we anticipate over the next several years is the proliferation of social media as a promotional tool and a lesser dependence on traditional media outlets. The challenge we face is to how best harness this powerful medium to be most beneficial to the credit union and its members.

An immediate benefit of the social media phenomenon is that we were more easily able to inform our members and the public of the many different community projects and fundraisers we sponsored this year. A cause that was very close to the heart of many at the credit union was the “Flight of Honor” project which provided the trip of a lifetime for WWII veterans to visit the WWII Memorial in Washington D.C. Through the generosity of our members, the credit union raised $5,500, enough to send eleven members of “the greatest generation” on this wonderful journey. Barbara Tucker, our Director of Training, had the privilege of representing Members Credit Union as a trip ambassador making sure that three of these heroes had a safe and rewarding experience.

Once again the credit union raised money to support the Juvenile Diabetes Research Foundation (JDRF). This is the fourth consecutive year that our members have opened their wallets and pocketbooks to help find a cure for this insidious disease. Over the past four years credit union members and employees have donated over $37,000 in the fight against juvenile diabetes.

After a one year hiatus caused by the poor economy in 2009, the Members Credit Union Charity golf tournament returned and raised $5,000 to add to the MCU Scholarship Fund. From this fund in 2010, sixteen members were granted scholarships worth $12,000, including Lauren Mills of Nebo, NC who received the $3,000 John R. Loftin Scholarship. Since the inception of our program, 168 members have been awarded scholarships worth $130,000.

Our philanthropic efforts throughout the communities we serve have not gone without recognition. At the North Carolina Credit Union League’s Annual Meeting in June 2010, Members Credit Union received second place in our asset category for our food drive conducted with the grand opening of our Elkin branch in the summer of 2009.

Our Supervisory Committee, our State Examiner, and an independent professional auditing firm all performed audits of Members Credit Union within the last year. All examinations confirmed that our records and operating procedures are sound and our financial standing is strong.

We are optimistic that 2011 will bring a more vibrant economy and an increase in employment figures. We do see encouraging signs that we may have rounded the corner of this downturn, as many of our sponsor groups are back to full production and are even adding new workers to their payrolls. As our sponsor companies thrive, our membership totals should rise and our loan portfolio should begin to recover. Regardless of what the new year brings, the credit union will continue to provide quality products and services at a fair price to help our members reach their financial goals.

Thank you for your continued membership and support.

It’s hard to believe the 2010 Holiday Season is approaching. One of the comforts I look forward to the most is Mom’s homemade pumpkin pie and peppermint pound cake. Mom’s home cooked meals never disappoint my family and we rarely find a meal anywhere else that can compare. Why does Mom’s cooking taste better? The secret of her culinary success is in her recipe. Of course she has years of experience and knows when the batter needs an extra dash of nutmeg or when a casserole needs to be baked a few minutes longer. Still the basic ingredients to her success are tried and true.

Much like Mom’s pound cake, the key to personal financial management is a recipe. Progress towards retirement funding, freedom from credit card debt, and saving for a down payment on a home begin with a basic plan. Your outcome will depend on your commitment to follow your recipe and the ingredients to your financial success can be found with help from your credit union.

Recipe for Financial Success from the Kitchen of Jack Braswell

1. Open a Fee Free Checking Account. Are you paying monthly fees for a checking account? Move your money to MCU. As long as you keep $25 in your checking account on the last day of the month you will avoid a low balance fee. Your MCU checking account includes a free VISA Debit Card, eBill (MCU’s online bill pay service), and MCU@Home online banking. These essential checking account tools help you track spending, deposits, and pay bills on time. The best part, these ingredients come free with your MCU Checking Account.
2. Fund Your Savings Account Through Payroll Deduction. The easiest way to increase your savings account balance is to deposit funds automatically through payroll deduction. You can set aside as little as $5 a pay period. Deduction changes can be made anytime at no charge. Direct Deposit and Payroll Deduction are free and if you work for one of MCU’s 480 sponsor companies you can fill out a payroll deduction form though your payroll or human resources department.
3. Contribute to Your 401(k) at least up to the Amount Your Company Employer will Match. Check with your human resources or employee benefits department to find out about your employer’s 401(k) matching program. Some employers will match your contribution up to 5%. If that is the case for you and you don’t contribute at least 5% of your income you are passing up free benefits.
4. Finance Your Used and New Vehicle Purchases at MCU. Are you paying more than 6.75%APR in interest for your vehicle? At MCU you can refinance and get your rate as low as 5.25% APR.
5. Consolidate Debt with an MCU Debt Consolidation Loan. Pay off up to $15,000 of credit card debt with an MCU consolidation loan. Give us the bills and we will give you one low monthly bill to pay.
6. Refinance your Mortgage with W.R. Starkey. Mortgage loan rates are still at historic lows. If you own your home talk with our mortgage partner, W.R. Starkey, to see if refinancing your home could save you money. Call 800-951-8000, ext 190 if you live in Central or Eastern NC. Call 866-247-1675 if you live in Western NC.
7. Consult with Richard Davis, our MEMBERS Financial Representative, for Investment Advice. Initial consultations with Richard are free for MCU Members and MEMBERS Financial Services include Retirement Planning, Investment Planning, Estate Panning, Insurance Planning, Educational Funding, and Mutual Funds. Contact Richard Davis by email at richard.davis@cunamutual.com or by phone at (336) 748-4800, ext. 111, toll free (800) 951-8000, ext. 111.

In September 2008 when the credit crisis was most critical, the stock market took a nosedive and unemployment rates skyrocketed. The bleak economic outlook took its toll on consumer confidence. In reaction to these events MCU initiated Holiday Skip-a-Pay. The popularity of this member benefit was phenomenal. During the months of November ’08 and December ‘08 MCU modified 4,089 loan agreements that added up to $876,772 in member payment obligations. We were happy to repeat this program in 2009 and we are happy to announce that MCU’s democratically elected board has approved Holiday Skip-a-Pay for 2010.

Once again MCU members can extend due dates on all non-mortgage-related MCU loans for the month of November or December. Holiday Skip-a-Pay is free and it gives each member the chance to enjoy one month without an MCU loan obligation. After all, every budget needs some wiggle room – especially during the holidays.

Contact your local MCU Loan officer or call 800-951-LOAN (5626) to extend either your November or December non-mortgage related MCU loan payment(s). Then focus on what really matters most to you during the holidays.

Lately, financial institutions have sent letters to their checking account holders requesting them to opt-in to an overdraft protection plan that will allow debit card purchases or ATM withdrawals to clear the Checking Account, even when funds are not available. Sounds like a great deal until you learn that some financial institutions could charge as much as $39 per overdraft item. Avoid high overdraft protection fees by opening a Checking Account at Members Credit Union (MCU) with overdraft protection. MCU offers two money saving options to help you avoid an accidental overdraft.

MCU will transfer money from your MCU Savings Account to cover a charge or check that would have overdrawn your Checking Account. Funds from savings will be transferred in $25 increments to cover the charge and there is no transfer fee.

MCU will transfer money from your MCU Line of Credit to cover a charge or check that would have overdrawn your Checking Account. Funds from the line of credit will be transferred in $25 increments to cover the charge. There is no charge for transferring the money. This transaction is considered a loan, currently with a 10.75% variable APR. Excessive balance charges may be applied if the credit limit is exceeded.

Overdrafting your account at another financial institution without overdraft protection not only causes expensive fees or embarrassing situations – it could put your checking account in danger of being closed. To learn more about Members Credit Union’s Checking Accounts and our overdraft protection options please call your local branch or our Member Services Department at 800-951-8000.

In 1953, twenty employees of McLean Trucking Company formed McLean Employees Credit Union, a financial cooperative, to benefit their fellow employees. Their strategy was simple. Create a fair lending and savings environment that respects the financial well being of all members no matter what their financial status may be. The framework for their success did not include risky lending or aggressive spending. Progress was measured by the quality of credit union service.

Many changes have taken place over the past fifty-seven years. However, we have remained true to the core philosophy of our founders and through the years the result has been solid, steady growth. MCU’s gradual growth may seem uneventful, even boring at times, yet this strategy has proven effective.

Over the last decade MCU has added eight branch locations, launched www.memcu.com, added free eBill online bill pay, and added free MCU@Home online account access with eStatements – just to name a few. The best part – we were able to grow our credit union without hurting our ability to provide friendly personal service. Even during the worst financial crisis since the Great Depression we emerged virtually unscathed thanks to our no risk people first approach to business. We thrived and we survived without closing branch locations, downsizing staff, reducing service, or charging unfair fees.

Members Credit Union doesn’t have a branch on every corner nor are we the largest financial institution – and that’s OK. I’m proud that we have maintained high quality affordable financial service, continued to provide trusted traditional financial products, and integrated up-to-date financial solutions that meet the needs of our 52,000 members and counting. I feel certain our original twenty founding members would be proud of our growth too.

Last year Congress passed the CARD (Credit Card Accountability, Responsibility and Disclosure) Act to protect consumers from usurious rates and unfriendly terms by credit card issuers. The first phase of the legislation took effect last August. It required statements for open-ended loans to be sent at least three weeks prior to the due date, giving people ample time to make their payment before it became due. A second phase took effect February 22 that required credit card providers give 45 days notice before increasing interest rates and in most situations banned credit card companies from raising interest rates on existing balances. These restrictions made credit card companies scurry to increase rates, change terms, raise minimum payments, and develop new crazy fees to charge.

As one example, a long time credit union member received a letter from her credit card company informing her of a new annual $60 fee. She had carried this card for nearly twenty years, always made payments on time, and usually paid the balance in full. Her reward for being a good customer? An annual $60 fee. This is the same place that previously lowered her credit limit and increased her interest rate. I think the old adage of “with friends like these who needs enemies?” is appropriate here. What did this member do? The same thing I would encourage you to do if you receive one of these notices – close your account promptly and apply for an MCU Visa Credit Card. At MCU we do not charge an annual fee for our card nor do we arbitrarily lower credit limits on our members’ cards.

Credit card companies are also finding creative ways to circumvent rules on raising consumer interest rates. The CARD Act prohibits issuers from increasing interest rates on existing balances. However, 12 months after receiving your card, credit card companies can raise interest rates on your future purchases provided you are given a 45-day notice. Sure, you can refuse the new rate but you also must stop using the card and pay it off over 5 years at the old rate. At Members Credit Union we don’t believe in bending the rules like Uri Geller’s spoons just so we can charge a higher rate. With our card you pay the same rate on your entire balance, unlike other credit card companies that may charge one rate for cash advances, another rate for purchases made before a certain date, and even another rate for purchases made at a later date. You need a math degree from MIT to understand it all!

The CARD Act does allow for credit card companies to raise the interest rate on customers who are 60 or more days past due. To me this is kind of like kicking a man when he is already down. At MCU we do not increase the interest rate on those members who have fallen behind on their payments. What is the point of raising interest rates on someone who is already having financial troubles?
So what should you do with your current credit card? Cut the card in half, run it through your shredder and call your credit card company to close the account. Then call someone you know and trust that offers a credit card with a low rate, no annual fees, and no cash advance or low balance fees – your local Members Credit Union.

As we survey the financial landscape after a volatile 2009, we are pleased to report that Members Credit Union fared quite well. In a year in which over 140 banks failed as well as 28 credit unions, Members Credit Union maintained a strong capital to asset ratio of just under 10%, increased assets by 11% and deposits by 13.1%. Despite an extremely trying time for the nation as a whole and the adversity of the past twelve months in the financial industry, Members Credit Union persevered and is as financially healthy now as ever in our 56-year history.

How did we avoid the problems that befell so many other financial institutions? Quite simply by remaining true to our core values of investing wisely and securely. Unlike many other financial institutions, we do not try to hit “home runs” with our investments. We believe in a solid investment strategy that provides a steady return. We do not participate in commercial lending or indirect auto lending. We shy away from 30 year fixed rate mortgages that do not require a down payment or any income verification from the applicant. We pass on risky investments such as commercial real estate mortgage backed securities and Collateralized Debt Obligations. These types of investments, while offering the opportunity for a huge return, also carry tremendous risk. When investments such as these tanked, investors were unexpectedly exposed. Members Credit Union with its solid and thoughtful investment strategy did not suffer the huge losses incurred by those institutions that chose to follow a more dangerous investment strategy.