Credit Union 101
What’s the difference?
Property of Penn State Federal Credit
The Beginning
How it all began...
The history of credit unions began in 1844, with a group of weavers in Rochdale, England, who established
the Rochdale Society of Equitable Pioneers. They sold shares to members to raise the capital necessary to
buy goods at lower than retail prices, and then sold the goods at a savings to members. In doing so, they
became the first credit union.
The movement then spread to Germany in 1850, Canada in 1901 and the United States in 1908.
A credit union is a cooperative financial institution that is owned and controlled by its members, and
operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other
financial services to its members. Credit unions differ from banks and other financial institutions in that the
members who have accounts in the credit union are the owners of the credit union. A credit union’s policies
governing interest rates and other matters are set by a volunteer Board of Directors elected by and from the
membership itself. Credit unions offer many of the same financial services as banks.
How Penn State Federal Credit Union began...
Chartered in January 1959, University Park Federal Credit Union began operations in Lawrence and Rose
Marriott’s dining room. In 1972 at the University’s request, our name changed to Penn State Federal Credit
Union and operations moved to campus. The Credit Union has had several offices on campus and is
currently located in the HUB. In 1992 our North Atherton Street location opened and our location in Bellefonte will opened in 2009.
How to join a Credit Union...
Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union’s
charter defines its “field of membership,” which could be an employer, church, school or community. Anyone
working for an employer that sponsors a credit union, for example, is eligible to join that credit union.
See the next page for a list of businesses in Penn State Federal’s field of membership.
Property of Penn State Federal Credit Union
Penn State Fedreal Eligibility
EMPLOYEES AND FAMILY MEMBERS
• Penn State University-faculty, staff, students, retirees
& their family members (all branch campuses)
• Amberleigh Homeowners Association
• American Association of University Women (State College Chapter)
• APD Life Sciences
• Arris (formerly c-cor.net)
• Atlas Realty Management
• Autoport Motel & Restaurant
• Barnes & Noble (Penn State Bookstore employees)
• Beck’s Paving
• Bonfatto’s
• CATA/Centre Area Transportation Authority
• Central Maryland Chapter of the Penn State Alumni Association
• Central Pennsylvania Convention & Visitors Bureau
• Centre County Association of Realtors
• Centre County Chapter of the Penn State Alumni Association
• Centre County Women’s Resource Center
• Centre Lifelink EMS
• Chemcut Corporation
• CLC/Centre Learning Community Charter School
• Comcast (State College employees)
• Conduit Internet Technologies, Inc.
• Dairy One
• Dickinson School of Law
• Downtown State College Improvement District
• Drayer Physical Therapy Institute
• Eagle Valley Personal Care Home
• Eagle Ridge Personal Care Home
• Epic Settlement Services & Epic Abstract
• Faith United Church of Christ
• Foxdale Village
• Glenn O. Hawbaker, Inc. (GOH)
• Gray’s Cemetery Association of Halfmoon Township
• Hearthside Rehabilitation and Nursing Center
• Heberling Associates Inc.
• Hilex Poly Co., LLC
• Hospitality Asset Management Company Inc.
• HRI, Inc.
• Impact RLW Systems
• Joseph C. Hazel, Inc.
• KCK Direct
• Kid’s Court Child Care & Learning Center, Inc.
• Master Computer
• Minitab, Inc.
• MPI Research
• Nittany LERA
• Olympus NDT
• Omega Piezo Technologies, Inc.
• Orchard Creek Homeowner’s Association
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Penn State Hershey Medical Center
Potter Development Services, Inc.
Resource Technologies Corporation
Restek Corporation
South View Farm
State College Woman’s Club
Strawberry Fields
Terra Excavating
The Village at Penn State
Willomar Partnership
Young Scholars of Central PA Charter School
ZedX Inc.
Property of Penn State Federal Credit Union
The Credit Union Difference
Our Members…
are also owners, helping each other offer lower interest rates and other competitively priced financial
services. Becoming a part of Penn State Federal Credit Union now means you may take advantage of all the
benefits of membership for as long as you are a member. Once you are a Penn State Federal Credit Union
Member, you are ALWAYS a member.
What’s The Difference?
Credit unions have members, not customers
Banks serve anyone in the general public
Credit unions are democratically controlled
Banks have only investor voting privileges
Credit unions are not-for-profit
Banks allow profit sharing for investors only (usually in the form of stocks)
Locations and Hours
1937 North Atherton Street
State College, PA 16803
Mon-Wed 9am to 4pm
Thurs - Fri 9am to 5:30pm
Loan, Teller and Member Services available
LL-009 HUB-ROBESON Center
University Park, PA 16802
Mon-Fri 9am to 4pm
Loan, Teller and Member Services available
123 Amberleigh Lane
Bellefonte, PA 16823
Mon-Wed 9am to 4pm
Thurs - Fri 9am to 5:30pm
Loan, Teller, Administration and Member Services available
Property of Penn State Federal Credit Union
Accounts
Share Savings Account
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Required for membership
$5 Minimum balance
$100 earns dividends
ATM card
Unlimited free PSFCU ATM and teller transactions and unlimited surcharge free CU$ ATM transactions
No withdrawal fees
Teen Club Account
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No Teen Club membership fee
Currently earning .02% interest; rates are subject to change upon board approval
$5 minimum balance requirement
$5 earns interest
No fee teller and PSFCU ATM withdrawals
Surcharge free CU$ ATM transactions
Upon completion of all four Teen Club classes, you may get a visa debit card and/or Visa credit card
Kids Club Account
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$5 balance earns dividends
ATM card
Can be used as overdraft protection on Penn State Federal Checking accounts
Small prize for each deposit
$1 Birthday Coupon
Frequent Saver’s Card - Get stamped for each deposit of at least $10. Collect 10 stamps and we’ll stuff an
extra $5 into your account!
Certificate of Deposits ($250 minimum)
SmartStart Share Account
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SmartStart Accounts have fixed terms up to 30+ months
Interest rate is variable
$100 minimum balance & opening deposit
$100 balance earns dividends
Minimum monthly deposit requirement of $10
Early withdrawal fee
Money Market Share Account
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$1500 opening deposit
Tiered dividend account (see rates page)
6 transactions per month, 3 of which may be checks clearing in that month
No charge check writing ability
Property of Penn State Federal Credit Union
Accounts
Vacation Club Account
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No minimum balance or opening deposit
$100 balance earns dividends
Anytime terms
No withdrawal fee
Holiday Club Account
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No minimum balance or opening deposit
$100 balance earns dividends
October-to-October terms and balance is transferred to Basic Share Savings on September 30
Early withdrawal fee
Freedom Checking Account
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No minimum balance or opening deposit
Visa debit card (no monthly fee)
Free Bill-Pay
Free e-statements (required)
Unlimited surcharge free CU$ ATM visits and unlimited no-charge check writing ability
Thrift Checking Account
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$100 minimum balance & opening deposit
$8 below minimum balance fee per month
Unlimited surcharge free CU$ ATM visits and unlimited no-charge check writing ability
Premier Checking Account
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$2,000 minimum balance & opening deposit
$10 below minimum balance fee (per month)
$2,000 balance earns dividends
Unlimited surcharge free CU$ ATM visits and unlimited no-charge check writing ability
Property of Penn State Federal Credit Union
Accounts
Loans
Penn State Federal offers loans for almost anything! Check our website for the interest rate you’ll have to pay
on the loans.
• Visa Platinum Rewards Credit Card
• Car Loans
• Home Loans
• Credit Lines
• Business Loans
Other products/services available
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CDs - Certificates of Deposit
IRAs - Individual Retirement Accounts
Notary Services
Travelers Checks
Money Orders
Free Financial Education Seminars
Business Services
Free Identity Theft Protection
Mobile Banking
Property of Penn State Federal Credit Union
Account Access
ATM Cards
• Automated Teller Machine
• Unlimited Penn State Federal ATM visits
• Unlimited surcharge free CU$ ATM visits (any ATM with a CU$ displayed)
• $300 daily withdrawal limit
• 24 hour account access
Home/Mobile Banking
PENNY-LINE - Free telephone access to your account 814-865-3983 (local)
• 800-828-4636 (toll-free)
• 24 hour account accessibility
• Check balances, make transfers, view history
PENNY-ONLINE - Free online access to your account
• www.pennstatefederal.com
• 24 hour account accessibility
• Check balances, make transfers, view history
PENNY MOBILE - Download our Free Penny Mobile App for your phone or mobile devices
(Android and Apple iOS devices only)
• Make a deposit to your Penn State Federal checking or savings account with Mobile Deposit
• Check balances
• View transaction history
• Transfer funds between your Penn State Federal accounts
• Pay bills
• Locate Penn State Federal branches and ATMs
Penny Bill Pay
Penny Bill Pay allows you to pay all your bills online. Once you pay a bill, Penny Bill Pay remembers the mailing and account information for you, so paying bills next month is a snap! You can set up recurring or onetime payments to anyone! Get unlimited bill paying, free on-line check copies and unlimited access for free
with Freedom Checking (all other checking accounts charge $5 for this service). Allow about 3 business days
for your account activation email to arrive.
E-Statements
Free account statements are available through Penny On-Line. You will be notified through your email each
month that your statement is available and will be waiting for you at a secure site online. To receive e-statements, you must agree not to receive a paper, mailed statement. You may already be set up for free E-Statements, make sure to keep your email address information updated though Penny On-Line. When you sign
up, there will be a few months of past statements already available.
Property of Penn State Federal Credit Union
CU Service Centers
Credit Union Service Centers
You have access to your credit union account at over 5,000 credit union offices nationwide that share
transaction services through the CU Service Center Network. The CU Service Center Network allows you to
experience the same high quality personal service you have come to expect from Penn State Federal,
whether the office is across town or across country.
To find a service center location, visit their online directory at www.co-opcreditunions.org or call
(800)-919-CUSC (2872).
When visiting a shared service branch, simply provide the teller with the full name of your credit union,
account number and a photo ID card. The CU Service Center’s member service representative will access
your account at Penn State Federal, and you can make deposits, withdrawals, transfers, or loan payments.
The CU Service Center network is perfect when traveling. If you are relocating, there is no need to leave Penn
State Federal.
Property of Penn State Federal Credit Union
Glossary
Glossary of Terms
Annual Percentage Yield (APY)-The percentage, required by Truth in Savings regulations, to be disclosed on
interest-bearing deposit accounts that reflect the total interest to be earned on an institution’s compounding method, assuming funds remain in the account for a 365-day year.
ATM (Automated Teller Machine)- A terminal activated by a magnetically encoded card that allows customers of a financial institution to conduct transactions such as deposits and withdrawals. An interconnection of
these terminals allows customers to conduct certain transactions nation or world wide.
ATM Surcharge- Fee charged to use an ATM owned by an institution that isn’t the cardholder’s primary institution. If you use your PSFCU card at another financial institution, you may be subject to this fee.
Board of Directors- Group of volunteers charged with providing the general direction and control of the
credit union. Officers of the credit union (Chairman, Vice Chairman, etc.) are selected by the board.
Dividend- Distribution of earnings to shareholders. In credit unions, it’s the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
E-statement- A detailed electronic record of transactions incurred in a member’s account for a certain period
of time (usually monthly or quarterly).
Joint Account- An account owned by two or more persons who share equally in the rights and liabilities of
the account.
NCUA (National Credit Union Association) - Created in 1970 to charter and supervise federal credit unions.
Non-Profit Organization- Economic institution that operates like a business but does not seek financial gain.
Examples are schools, churches, community service organizations, and credit unions. Non-profit organizations often provide goods and services to consumers while they pursue other rewards such as improving
educational standards, seeing the sick become well, and helping those in need.
PIN (Personal Identification Number) - A confidential personal identification code, usually consisting of four
to six digits, used by members to access their accounts at ATMs.
Share Account- a regular or special savings account that isn’t a share certificate account.
Property of Penn State Federal Credit Union
Quiz
Please return to Penn State Federal Credit Union attn. Marketing Department or e-mail your answers to
clubteen@pennstatefederal.com. After we receive your quiz answers, you’ll receive credit for Credit Union
101.
Credit Union 101 Quiz
Name:______________________________________________________________________________
Address:____________________________________________________________________________
Email:_______________________________________________________________________________
1.
Name two groups who are eligible to join Penn State Federal Credit Union.
2.
Who owns and operates Penn State Federal?
3.
What dividend percent (%) is the Teen Club share account currently earning?
4.
Is a share account required for membership?
5.
At what dollar amount does the Teen Club share account earn dividends?
6.
What does ATM stand for?
7.
Why are credit union service centers valuable?
8.
What does surcharge mean?
9.
What does PIN stand for?
10. Name two ways to transfer funds between accounts if Penn State Federal CU is closed.
Property of Penn State Federal Credit Union