Credit Unions are faced with the difficult task of managing surplus funds. Today’s financial marketplace provides investors with a complex array of potential investments offered by an equally confusing variety of issuers. The real challenge is to achieve high yields while keeping these funds as safe as possible and available for withdrawal as needed. Kentucky Corporate’s investment philosophy adheres to the time tested principle of “Safety First,” followed by Liquidity and Yield (SLY). This philosophy holds true in all types of market situations and has allowed Kentucky Corporate to pay competitive rates for over 20 years. Deposits in Kentucky Corporate are not subject to mark-to-market accounting requirements as defined by SFAS No. 115. The Regulators, the National Credit Union Administration and the State Department of Banking, do not take exception to the amount of funds invested in Kentucky Corporate Federal Credit Union, provided the credit union performs an independent analyses on all financial institutions in which invested funds exceed the insured limit. This analysis may be performed using our Annual Report as well as our Quarterly Reports.
Whether your credit union is seeking an overnight investment or a term investment, Kentucky Corporate can meet your needs through one of the sources listed below.
Over-Night Daily Account
The Over-Night Daily Account offers credit unions increased flexibility and yield. The Over-Night Daily Account is used as a transaction account for all clearings, wires, and funds transfers, thus maximizing earnings. Dividends are accrued daily, and are paid monthly.
Money Market Share Account
The Money Market Account is an option for members who opt to manage their overnight funds to increase yield over the Over-Night Account, while limiting withdrawals to 8 per month. Dividends for this attractive account are accrued daily, and are paid monthly and compares favorably with Fed Funds rates.
Certificates of Deposits
Kentucky Corporate offer a wide variety of high-yielding certificates with terms ranging from one-day to five years, along with flexible dividend schedules to meet your liquidity needs. Rates are available via Open Door or may be faxed on a daily basis to your credit union. Rates change throughout the day so our toll-free number is provided for your convenience. Dividends are accrued daily and can be paid monthly, semiannually or at maturity. The following certificates are available at Kentucky Corporate:
Membership Capital Account (MCA)
The Membership Capital Account (MCA) offers stability, leverage, and the base for development and growth of the Corporate Credit Union Network. Credit Unions are asked to invest 1 percent of their year-end assets in this interest bearing account. This account receives competitive investment rates, paid quarterly, and credit unions, which maintain this account, receive preferential investment and loan rates, access to the CLF and may attend Corporate seminars at a reduced fee or at no charge. Per NCUA, this account is a three-year (3) notice account and is not subject to share insurance coverage by the NCUSIF.
Paid-in Capital Shares
Paid-in Capital Shares are a voluntary long-term capital investment in Kentucky Corporate in which the projected dividend rate is substantially above the Membership Capital Account. Credit unions, who have purchased Paid-in Capital shares, transferred a portion of their Membership Capital Account to the Paid-in Capital Shares. Dividends are accrued monthly, and are paid quarterly.