SunCorp'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 SunCorp to pay competitive interest rates on shares
for over 25 years.
Below is a brief explanation of our investment offerings. Remember
that your SunCorp investments can be used as collateral for immediate
liquidity loans and are exempt from FASB 115 mark-to-market requirements.
They also provide you with the highest value possible without premiums
or discounts that may complicate your accounting operations
Security Safekeeping Services
Cash Management Account
This is the main transactional account for all credit union daily
settlement activities.This account computes interest daily and pays
interest monthly. Linked to the Corporate Settlement Account, it
is considered a transaction account and pays a slightly lower rate
than SunCorp's other overnight investment alternatives. Funds may
be drawn upon demand and without interest penalties or valuation
adjustments. Rates for the Cash Management Account are set and based
upon changes in the market.
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Money Market Account
The Money Market Account offers credit unions higher earning potential
on liquid funds. With no minimum or maximum investment required,
this account provides the ability to increase earnings on overnight
balances in excess of daily settlement needs. As an added benefit,
the Money Market Account offers tiered rates -- giving credit unions
the capability to invest and earn more. Rates, paid monthly, are
based on earnings received as well as market fluctuations, and are
very competitive with the effective Fed Funds rate.
This long-term account provides members the opportunity to share
in the success and long-term growth of their corporate. Participation
is a voluntary commitment, based on a credit union's assets, and
provides the crucial difference in their relationship with SunCorp...
ownership. This account allows members to vote on critical issues,
elect officials that govern, as well as borrow from SunCorp (does
not apply to settlement loans). A minimum three-year advance notice
is required for termination and dividends are paid monthly.
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Paid-in Capital (PIC)
The Paid-in Capital Share Account is a long-term capital account
alternative in which the projected dividend rate is substantially
above the rate of Membership Capital Shares. Due to a longer termination
notice of 20 years, PIC shares are managed on a longer-term basis
allowing SunCorp to increase dividends paid. The Paid-in Capital
Share Account does not require the investment of additional funds.
Credit unions may have a portion or all of existing Membership Capital
Share funds allocated to the Paid-in Capital Account. However, total
account subscriptions are limited to one percent of a credit union's
year-end assets. Dividends are paid quarterly. Please call an investment
professional for availability.
Short Term Share Certificate
These certificates are fixed-rate investment opportunities with
maturities ranging from one-day to over one-year. Interest is calculated
on a 365-day-year basis with interest paid monthly or at maturity
into the Cash Management Account. The minimum investment is $1,000.
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Credit unions wishing to earn higher yields on longer-term investments
can benefit from Intermediate Term Share Certificates. Similar to
Short-Term Share Certificates, these are fixed-rate investment opportunities,
with maturities over one-year to five-years. Interest on Intermediate-Term
Share Certificates is paid semi-annually and is calculated on a
365-day-year basis. Minimum investment is a $1,000.
Fixed, Callable Share
These certificates have a fixed rate for the entire term but may
be called to mature prior to the stated final maturity date. This
early prepayment would typically occur if market interest rates
declined after the certificate's issue date. A callable certificate
offers a yield in excess of U.S. Treasury securities with the same
final maturity date. The increased yield is considered compensation
for the prepayment risk.
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Step-Up Share Certificate
This certificate allows a one-time, or more, extension of the maturity
date with a higher interest rate. Step-Up Certificates offer yields
above equivalent treasuries and are issued at par. No minimum or
maximum investment is required.
The ACP Certificate is designed to provide competitive market rates
while minimizing many of the risks and record-keeping burdens commonly
associated with amortizing securities such as Collateralized Mortgage
Obligations (CMOs). Principal is returned over the life of the Amortizing
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Floating Rate Certificate
A Floating Rate Certificate of Deposit is a certificate where the
interest rate resets regularly and is tied to a variety of short-term
indices. A good alternative to short-term investments such as Fed
Funds, the dividend rate is a fixed-rate spread to a common market
index so the certificate rate adjusts with market changes. These
certificates typically are periodic offerings with terms between
one and a half and three years. Minimum investment required is $1,000.
SunCorp's SimpliCD program, brought to you by our service partner,
Primary Financial Co. LLC, provides members with a hassle-free and
direct source for bank or credit union certificates of deposits.
SimpliCD saves members the time of searching for the best rates
by handling the rate search for you. Please contact a SunCorp investment
professional for further information regarding the SimpliCD program.
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One phone call is all it takes to make a SunCorp investment. Our
investment professionals stand ready to help you find the products
that best fit your specific needs. Call us toll-free at 877.786.2677 x4645
or send us an e-mail to email@example.com
today to find out more!