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Yes, your money is safe and insured by the National Credit Union Share Insurance Fund (NCUSIF) managed by National Credit Union Administration (NCUA). NCUA will insure depositors up to $250,000 per member for single ownership and an additional $250,000 for joint ownership. Retirement accounts are insured separately and up to $250,000. There is no application, your funds are automatically backed by the full faith and credit of the US Government. Visit NCUA.gov for more information and to see how you can title your accounts to protect your deposits

The major difference between a credit union and a bank is how it was formed and their purpose. Credit unions are formed by a group of members for the sole benefit of their membership. Banks are formed by shareholders for the sole benefit of making a profit. The member-owned cooperative model by credit unions allow the profits to go back to the members in higher dividends and lower loan rates. Banks must report to their shareholders who expect positive return first, before returning money back into the institution. Typically, Credit Union’s fees and products are delivered at a lower cost and higher returns.

All Oahu (Honoulu County) and Maui County residents, their immediate relatives and those who work or worship in those two counties are eligible for membership.

How much money you retain in your savings is subjective and vary based on your situation. However, the rule of thumb is to save three months of your expenses in the case of an emergency. Usually monthly expenses are steady for a bit because your mortgage, auto loan and cellphone bills are normally fixed for 3-5 years. Therefore, if you can increase your savings 10% each year, you will be able to create a nice nest egg. However, in Hawaii, cost-of-living is higher and you will need to assess if an emergency were to occur - such as loss of job or illness, how long will you be able to carry all your expenses? If you have a specialized job, how long will it take you to find another job? And, once you build up your savings, everyone should consider strategies such as certificate investing or more aggressive options such as stocks or insurance.

Credit Union rates are normally better at Credit Unions VS Banks. Since Credit Unions give back the profit to its members through dividends and low loan rates, they will normally have the best rates. Banks must answer to Shareholders and will focus on returns to shareholders vs returns to customers.

The credit score for our best auto loan rate 720-850. However, a good credit score is not the only factor in obtaining an auto loan. Loan officers look at how much debt you have, how much available credit, payment history, cadence of credit requests, employment history, assets and stability. Credit is also extended for credit scores as low as 600 but due to other criteria, they may require a co-signer or downpayment and their interest rate will reflect the risk they pose as a buyer.

A Share Certificate is the Credit Union term for certificate of deposit (CD). Since credit unions use the term share for their savings account, they use the term Share Certificates. Credit Union’s use the term Share because all members are member owners of the credit union. Each member has an equal share and vote regardless of how much money they have deposited. Hence using the term SHARE. The Share certificate is a timed deposit where the money is locked in and earns a set amount of interest for the time the money is deposited. If you withdraw the money before the term ends, you will be assed a penalty and fee. Share Certificates will earn higher dividend rates than the regular share (savings) accounts. Share Certificates are a great way to earn higher dividends with minimal risk. Shares are insured by NCUA. See NCUA.gov for additional details.

Online banking is safe as you are diligent in protecting your information. Online banking is an accessible tool and very convenient to use. Only you have access to your online banking account and it is secured by a user name, password and multi-factor authentication. Protect your user name and password. Do not write it down where it can be accessed easily by others, do not store it online unless it is in a password vault and do not share your passwords. You must also further protect your data by using a computer that is up to date with its operating system and virus protection. Lastly, also when accessing onlinebanking, make sure no other browser windows are open and running. This ensures your access is not being watched or credentials are not being stolen. Also, continue to keep up with the credit union’s website and social media pages to be alerted with current scams and fraudulent activity.

You can protect yourself from scams and fraud by always checking with other sources to verify information. Do not call the number or visit websites that callers or emailers give you. Always do your research and call the numbers that you find through their website and phone numbers listed. Also, do not click links or download software if you did not request it or do not know the sender. And if you are waiting for a link, make sure to read the name of the email sender or website address to ensure it is from a reputable person. The final rule is if it sounds too good it is probably a scam. Most people or businesses will not give you something for free and require you to pay a fee or just simply give it away for free. Read, re-read, and proceed with caution. Make sure your anti-virus is up to date.

You should pay off your debt if you can afford it. If it is one or the other, meaning you cannot afford both, you need to assess your situation. Look at your debt and the interest rate you are paying. Look at your savings and the dividends it is paying. If you are earning more dividends vs the loan rate, it may be better to save the extra and pay minimum to the loan. If the opposite is true and your interest rate for the loan is higher than the dividends from the savings, you are financially better off paying your debt. You would essentially be paying the bank to hold your money. Instead of using your extra funds to pay down your debt sooner and reduce the amount of interest you pay, you’d be placing those funds into a low-dividend savings account while continuing to carry the higher-interest debt for a longer period of time.

Yes, you can afford a house in Hawaii. The house may not be your forever home and it may not be in your desired location. The strategy is to get into a home that you can afford. That means you may have to be 20+ miles away from town and it may be a town home instead of a single family house. That’s the first step in your strategy to your forever home. Hawaii homes has historically appreciated in value. So your home purchase will also increase in value. Once your home appreciates and you’ve built equity in your home, you can sell and purchase your forever home or buy up to be closer to getting your ideal home. When you purchase a home anywhere you need to know that it is not only the mortgage you need to consider when looking at your budget. Once you become a home-owner you need to pay property taxes, insurance, utilities (gas, water, electricity and sewer) and possibly home owner association fees. Also, when getting a home, you will need to furnish it with appliances, beds, furniture, take care of the yard, pool and reserve for maintenance. This amount could easily exceed $25,000 the first year. Once you are ready, go in with your eyes wide open and have a strategy of how you will eventually get to where you would like to live.

Today, students are not using checking accounts in the traditional way. They use debit cards, make deposits electronically and move money electronically through peer to peer payments. Bills are also paid electronically so they rarely need check payments. Therefore it is important to find a financial institution that has the features you will use. Check the accessibility of debit, credit and ATM cards and if there are any fees associated with them. It may be rare that you will need to go into a branch but if you do, is it accessible in the hours you can go and close enough to get there. For college students you may want to bank locally if you are resident but if you are out of state and plan to work somewhere else, you may want to establish your account with a national bank that you can access from wherever you end up. Always check the fees, especially for large banks who typically have high minimums and account fees.

APY is Annual Percentage Yield. Rates can be calculated as simple interest or compounded interest. If a $1,000, 2-year share certificate is 5% APY and it is calculated as simple interest, you will get a total of 5 percent for each year or $50 per year. Your final amount would be $1,100 after the two years.

If a $1,000, 2-year share certificate is 5% APY and it is calculated as annual compound interest, you will get a total of 5 percent, or $50, giving you $1,050 for year one. For year two, you will earn 5% APY on $1,050 you will get $52.50. Your final amount would be $1,102.50 after the two years. With compound interest your money compounds, making the growth faster.

Credit scores can be improved over time but there is no specific formula to improve your score. Credit scores is made up of payment history, credit usage, account mix, credit age and inquiries. You need all of these at proper levels to get a good score. So if your credit is only in credit cards you may not score so favorably in that category decreasing your score. Each time you apply for credit your score goes down. Each time you close an account your score goes down. Each time you pay a bill late or use more than 30% of your credit limit, your score goes down. To get your credit score higher, you need to pay your bills on time. If possible use auto pay for all your bills so you don’t get dinged with a late payment. It is great to have a large available balance but if you use more than 30% your score is at risk of going down. Try to stay at 30% or lower. If you have long time credit cards and don’t use them – do not close them. The longer you have credit the better your score. It’s okay not to have a balance on them. If you close the account you will erase the credit history. Keep inquiries at the minimum. Applying for excessive credit may indicate that you are having trouble and trying to live on credit or with all your new credit, you could over extend yourself and get into financial woes.

Avoiding fees or not paying fees you could have avoided is a smart financial move. Fees you should avoid that you can control, is overdraft fees. Overdraft fees can be costly. When you do not have enough money in your checking account when a check is being cashed, that is an overdraft or otherwise known as a bounce. If you bounce a check, you will typically have to pay a fee to the merchant and the bank. And overdraft fees are typically set at $20 - $50 per item. So if you wrote a check for $15 and you did not have enough to cover it, you could end up paying $115 for your item and fees. Some banks charge fees for the following: debit cards; home banking; ATM cards; check orders; copies of your checks and statements. All of these items are necessary to a checking account. Shop around to make sure you are getting the best bang for your buck.

The general rule of thumb is if there is a 2% difference in what they are offering and what you are paying, it may be worth a closer look. However, you also need to consider both the age of your loan and auto. Financial Institutions (FIs) typically offer higher rates for used cars and shorter repayment terms as the vehicle ages. Some financial institutions may still classify your vehicle as “new” for refinancing purposes if the loan is less than 12 months old and the original term remains unchanged. After that period, the vehicle is generally considered used. In many cases, dealerships offer attractive incentives when you finance directly through them. Because of this, we often recommend taking advantage of those incentives first, then refinancing the vehicle shortly afterward through a financial institution to potentially secure a lower long-term interest rate.

A joint account is a financial account shared by two or more individuals. Typically the account owners have a relationship such has spouses, parent – child, business partners or organization. For personal accounts, all owners of the account has access to the account. They can make deposits, withdrawals, add products and write checks (if it’s a checking account). The financial institution will consider each account owner to have full access and will not question if the other parties are aware of the transaction. For business or organizational accounts, they have their own set of rules and may require dual signature for all account activities.

Financial Institutions are bound to privacy and cannot discuss your records to anyone who is not listed on the account. The only way they may divulge information to those not listed on the account is with court orders and subpoenas. For accounts that are dormant for 5 years, it is escheated to the State as unclaimed property. To avoid confusion and delay, making sure you have updated beneficiary information on all your accounts and your estate is aware of all your accounts is a good practice.

Retirement planning is different for everyone because everyone’s lifestyle and goals are different. The best way to start is by thinking about the kind of retirement you want. Where do you want to live? What do you want to do? What type of lifestyle do you want to maintain? Once you create that persona, price out what it would take to live that lifestyle and add that up for the years from job retirement to 90years old. Next, account for inflation, because the cost of living will increase over time. A simple way to estimate future costs is:

Future Expense=Future Annual Cost × (1+4% inflation rate)^{Years til 90}

After estimating your future yearly expenses, multiply that amount by 25x for a general retirement number or 33x for a conservative number. This gives you a rough estimate of how much money you may need for retirement. Then subtract income sources you may already have, such as: Social Security; pension income; annuities; 401(k)s; IRAs; other investments or savings. The remaining amount is what you may still need to save for retirement. When planning your retirement, be realistic and go as granular as possible. Will you have pets? Will you travel? Who will take care of your pets? How much does it cost to care for a pet? You want to downsize to a condo – do they except pets? How much extra will a pet friendly condo be? The more detailed your plan is, the clearer your retirement goal becomes — and the easier it is to create a savings strategy to reach it.