Each year, Americans complete transactions more and more online. Consumers need to stay diligent to prevent becoming a victim of fraud and identity theft.

Here is a list of things you can do right now to make your accounts more secure. There are more tips outside this list but with many things in life, it’s about taking the first step!

Change your passwords so they’re unique and strong

Take the time to start changing your passwords so that each account has a different password. Begin with your most important accounts such as your financial accounts.

The Federal Trade Commission (FTC) provides a great example of a creative password, “Think of a special phrase and use the first letter of each word as your password. Substitute numbers for some words or letters. For example, ‘I want to see the Pacific Ocean’ could become 1W2CtPo!”.

This is an excellent example because it:

• Has upper and lowercase letters
• Contains special characters
• Doesn’t contain personal information
• Is at least six characters long (but ideally could be longer)
• Is memorable to you but gibberish to others

Brainstorm how you can make every password memorable but different. If you have trouble remembering your passwords, consider a password manager.

Update your usernames so they’re unique too

It’s best to vary your login credentials to ensure that each financial account has a unique username and a unique password. Why? If you created a username and password that was the same as the one you had during a breach, your other financial accounts could have been compromised as well.

Sometimes apps require an email for your username. It’s not ideal because you cannot make it unique. Think about having an email for purchases and services you want to try and another email account for important communications. It can help with spam but also may limit your chances of exposure through your email.

Sign up for two-factor authentication

Two-factor authentication is key in securing your financial info. Here’s how it works: After logging in to your credit union’s online or mobile banking, you’ll get a code via text or email. The password and code can confirm that the member is the only one who is accessing their account.

Two-factor authentication is more secure than security questions. Your answers to security questions can sometimes be found on social media. For example, your mother’s maiden name or your favorite activity could be found if you posted about either.

Plus, it’s easy to forget how you answered a question. Two-factor authentication can make your life a little easier and safer. If you haven’t already, sign up for two-factor authentication where you can.

Opt in to automated account alerts

Sign up for automated alerts to help protect yourself from fraud. It takes just a few minutes and you can customize the alerts. With alerts set up, if you didn’t make a transaction, you can see it right away and contact your financial institution.

Install antivirus and get a VPN

Any device is vulnerable to hackers, including your smartphone. Install an antivirus that protects against malware, ransomware or trojan horses.

Also get a VPN, which encrypts your traffic, and use it anytime you’re online. Both an antivirus and VPN are worth the annual fee.

Say no to public Wi-Fi

When you’re getting work done at a coffee shop or browsing your phone at the airport, it is very tempting to hop on to the free public Wi-Fi. Don’t do it!

There are a few ways hackers can easily steal your information on public Wi-Fi:

• Fake Wi-Fi connections are simple to create and allow fraudsters to access your private information. Should you join Joe’s Coffee or Joe’s Coffee Shop? Both could be accurate but one could be malicious.
• Packet sniffing is when a hacker can scan everyone’s information on public Wi-Fi with easy to use, free software. Almost anyone can find your passwords.
• Sidejacking is when a hacker can access anywhere you’re logged in at the time. From there, they can download malware among other things.

Start paying with your smartphone

Mobile wallets such as Apple Pay, Google Pay or Samsung Pay help keep your transactions safe by creating a unique code for each transaction. It’s more secure than swiping because the store doesn’t have your name, card number or security code. All of that information stays private.

Add your debit and credit card to your mobile device and use it for any of your in-person payments. Hundreds of thousands of stores accept digital wallets so try it on your next trip to the store.

Laura Ybarra, President & CEO, AllCom Credit Union announces the recent promotion of Erin Harvey to AVP, Member Services. Starting with AllCom in 2011 as a part-time teller, Harvey has moved up the ranks holding multiple branch positions such as head teller, branch supervisor, assistant branch manager and most recently, branch manager.

“For more than 10 years, Erin has been a tremendous asset to our team,” said President/CEO Laura Ybarra. “AllCom is fortunate to have her continued dedication to delivering an experience for our members.”

Laura Ybarra, President & CEO, AllCom Credit Union announces the recent promotion of Christine Alves to AVP, Operations. In addition to her promotion, Christine recently celebrated her 10th anniversary with AllCom Credit Union. Her journey with AllCom Credit Union began in 2012 as a Financial Service Representative. From her branch position, she moved to Operations as an Operations Specialist and was later promoted to an Operations Manager.

“Christine is the epitome of a team player and always helps anyone whenever and wherever it’s needed,” says Laura Ybarra. “She spearheads the most complicated projects, demonstrates an unbelievable ability to stay calm and organized, and always does so with a smile.”

Believe it or not, you’ll need more than just a pile of cash to make your first (or second, or third) home purchase. There are other non-monetary assets that you’ll need in order to qualify for a home loan with the lowest interest rate. Add these five assets to your list of things to have before you begin your house hunt!

Steady Income

Proof of a steady, reliable income shows a lender you are capable of affording the monthly mortgage payments and are a low risk for defaulting on the loan. Usually, lenders want to see a work history of at least two years at your current employer or in your current field. If you’re self-employed, the required work history length may be longer.

As proof, lenders may ask for a signed letter from your employer stating your position and salary or two years’ worth of paystubs. Or you may be asked to provide your last two years of income tax returns.

Low Debt-to-Income Ratio

This ratio is a non-cash asset, but it’s important in the eyes of lenders. Although a lending agent won’t ask for your entire personal budget, they will look at the ratio of your monthly debt obligations (student loans, car loan, credit card balances, personal loans, etc.) to your gross monthly income. This is your debt-to-income ratio. You want to keep this ratio as low as possible, with your estimated new mortgage payment included in the calculations. These days, lenders offer the best mortgage rates to borrowers whose total monthly debts (including the estimated mortgage payments) are no more than 43% of their total gross income.

Carrying a high debt-to-income ratio will make it harder to qualify for a mortgage. Before beginning your house hunt, work to pay off current debts and lower that ratio.

Good Credit Score

This is another non-cash asset that is an important part of every home-buyers’ mortgage application. Your FICO credit score is the primary way lenders gauge how well you’ve managed credit, loans, and debt in the past and if you pay your bills on time (a big factor when they’re considering you for a mortgage!). Scores fall on a scale of 300 to 850. While a credit score of 670–739 is considered “good,” applicants with a score of 740 or higher are the ones most likely to receive better-than-average rates from lenders.

You are allowed one free credit report each year from each of the three credit reporting agencies: Experian, TransUnion, and Equifax. While you’re saving up for a hefty down payment, you can also check on your credit score and work to improve it: pay off debt (e.g. student loans, credit cards, medical debts, etc.), pay all bills on time, and don’t open or close any lines of credit (e.g. store credit card, personal loan, etc.).

Cash for a Down Payment

The money you plan to spend as your down payment on a house should be in the form of cold, hard cash in an account you can easily access (not in a CD or share savings account where you may pay a fee for the withdrawal). It can be tempting to put all or part of the down payment on a credit card, but this will affect your debt-to-income ratio, which ultimately lowers your creditworthiness.

In order to receive the best loan rate and avoid paying private mortgage insurance (PMI) on a conventional loan, you need to save up for a down payment of at least 20%. With other strong financial elements—like low debt-to-income ratio and excellent credit score—you may be able to put less money down and secure a decent mortgage rate, but you’ll still be taking out a larger loan and ultimately paying more interest on that larger principal over the life of the loan.

Cash for Closing Costs

Be sure to earmark some of the cash you’ve saved up as cash for paying closing costs, an often-overlooked home-buying expense. Closing costs include loan origination fee, title search and recording fee, appraisal fee, inspection fee, property taxes, and others. While these costs can vary, they generally fall between two percent and five percent of a home’s purchase price.

While you can sometimes roll these costs into the mortgage, it’s best to be able to pay them up front with cash, thereby avoiding a higher monthly mortgage payment and possibly a higher loan rate. You may also pay these fees with monetary gifts from relatives or by negotiating with the seller to have them pay these costs—especially if they’re eager to sell.

If you or someone you know plans to attend college this year after graduating from high school, you’ll be happy to know that AllCom Credit Union is offering eligible members a chance to win a $1,500 scholarship to help cover the expanding costs associated with your college education.

The Credit Union College Scholarship Program, supported by Massachusetts Credit Unions and our statewide campaign, Better Values – Better Banking, is funding six (6) $1,500 scholarships that will be awarded to six (6) high school graduates chosen as winners from across the state. 

2023 College Scholarship Application

Application deadline: April 7, 2023

Scholarship Eligibility
1. Eligibility is limited to high school seniors who will be enrolled in an undergraduate college degree program during the 2023-2024 academic year.

2. Applicant or parent/guardian must be a member of the sponsoring credit union.

3. The credit union must be a member in good standing with the Cooperative Credit Union Association.

4. Each applicant must complete a current scholarship application form and submit it with the other required material to the sponsoring credit union.

5. Each credit union will select its top 3 applications and forward them to their chapter president. They must be accompanied by a cover letter from the sponsoring credit union CEO verifying that each applicant and/or parent/guardian is a credit union member.

Each chapter will select its scholarship winner evaluating each applicant on the same criteria the credit unions will be using grades, essay and extracurricular/community activities.

Students must submit the following items with their completed applications. All items requested must be received in order for the application to qualify for consideration.

1. Completed printed application.

2. An academic transcript of grades.

3. A typewritten essay of at least 250 words describing what you career you wish to pursue when you complete your education and why.

4. A detailed list of extracurricular/community activities and/or volunteer activities.

If you have any questions, please call Erin Harvey, Branch Manager at 508.754.9980.

Within the $1.7 trillion omnibus bill passed by Congress are a potpourri of sweeping changes to retirement plans–some of the biggest changes made in many years, including increasing the age of Required Minimum Distributions to age 73 starting for tax year 2023. 

Congress continued the trend of delaying Required Minimum Distributions. Many savers don’t like to be forced by the government to take RMDs, instead preferring to see their savings grow, especially given lifespans have increased. During the height of COVID, Congress allowed RMDs to be skipped for 2020 and later increased the RMD age to 72, and now in 2023 the age increases to 73 and will later increase to 75 in 2033. 

Another impactful change to RMDs is the steep penalty for failing to take an RMD has been reduced. Prior to the bill, if an IRA holder failed to take an RMD they were charged a 50% penalty of the RMD. That has been reduced to 25% and can be 10% if corrected in a timely manner. 

Emergency Withdrawal Option

There is a also a new relief for a retirement accountholder in need of emergency cash. Retirement account holders who withdraw funds prior to age 59 1/2 pay a 10% penalty. The bill contains a provision that waives the fee for an $1,000 emergency withdrawal if it is made for the “purpose of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses.”

Charitable Changes

One strategy IRA holders employ to do good and reduce their tax obligation is to make Qualified Charitable Distributions from their IRAs. The bill allows IRA holders 70 1/2 and older to do a one-time $50,000 withdrawal to fund a charitable gift annuity or charitable remainder trust. 

529 Roth Option

The government created 529 plans to help deal with the high cost of higher learning. One of the uncertainties with 529 plans for savers was the prospect of the child not going on to higher learning or having unused money in the 529. Prior to the bill, money in 529s that was not used could be designated to another family member for the purpose of higher learning or the account holder could pay a 10% penalty to withdraw the funds. The bill introduces a new option–allowing up to $35,000 of the 529 to be transferred into a Roth IRA. The 529 must be more than 15 years old under this change. 

Roth 401k Gets Roth IRA Attribute

Unlike Traditional IRAs that require RMDs, Roth IRAs do not require RMDs. Interestingly, Roth 401(k)s, which are not that widespread, did require RMDs, until now. The new law eliminates RMDs for Roth 401(k)s starting in 2024. 

Catch Up Amount Boosted for Older Workers

Prior to the new law, workers over the age of 50 could put an extra $6,500 in their 401(k)–that has been increased to $10,000. 

Tax Advisor Best to Assist

As always, members should consult with their tax advisor when assessing the impacts of any tax law changes. The new law includes a host of other changes around using 401(k)s for paying off student loans, mandating more investment options in 401(k)s, requiring small businesses to offer 401(k)s and more. 

Keeping your details updated means maximizing your ability to take advantage of the credit unions’ available services. Aside from having a reliable means of contacting you, you could also you could be missing out on an email advisory that could prove costly.

Here are 3 reasons why you should update your contact information now.

1. Fraud Protection: We visit a ton of websites a day, make lots of online purchases and transact with countless merchants using our debit and credit cards. Not having to present a physical credit card has opened up an opportunity for fraudsters to exploit on. Give AllCom the tools to protect you! 
2. Current Address for Confidential Information: A change of address with USPS does not mean Account Statements and other confidential information will be forwarded. USPS does not forward financial institution  Your financial institution needs to be notified. Keeping your contact information and your online banking profile updated are the best ways to do this.
3. Important Reminders and Updates: Not updating your contact information means missing out on important reminders and other time-sensitive prompts. Updated contact information is imperative, especially for those who don’t receive a paper statement of account.

If you need to update your contact information come by and see us or give us a call at 888-754-9980!

APY is short for “annual percentage yield.” Almost all savings accounts, and some checking accounts, have one. The higher it is, the faster your money grows. It’s an important term to know for anyone focused on saving more money.

What does APY mean?

APY refers to the amount of money, or interest, you earn on a bank account over one year. Of note, this includes compound interest. An interest rate is similar to APY except it doesn’t factor in compounding.

Simple interest doesn’t compound, so you earn the same amount of interest every month. Compound interest, meanwhile, is the interest earned on both the money you put into the account and the interest you receive over time.

The higher a savings account’s APY, the better. If you’re willing to lock away some of your savings for a set period of time, consider a certificate of deposit, or CD.

How to calculate APY

You can use a formula to manually calculate APY, if you know your account’s interest rate:

APY= (1 + r/n )^n – 1,

In which: r = interest rate n = number of compounding periods (if interest is compounded monthly, this would be 12)

AllCom Credit Union, or any other credit union or bank, will provide you with your APY.

If you know your interest rate, you can quickly see what you’ll earn in a certain period of time with our savings calculator. You can simply plug in your starting balance, the amount you’d add each month, the amount of time and the rate.

How compound interest works

Compounding occurs in a set period, usually daily or monthly. Interest compounded daily leads to more money than interest compounded monthly.

But it’s generally too small to worry about unless you’re dealing with large amounts — and even then, it won’t make a significant difference. For example, $100,000 in an account with a 0.50% APY earns only $0.10 more in one year when compounded daily instead of monthly.

Is APY variable?

That depends on the savings product. If you have a savings account, your APY is variable, and may increase or decrease based on market conditions. If you have a CD, the rate you have when you sign up is typically the rate you’ll receive throughout your term. If you sign up for another CD later, you may receive a different rate.

When the Federal Reserve increases its benchmark interest rate, the APYs on savings accounts and new CDs tend to increase as well.

So you’ve decided to buy a new car. Congratulations! Now comes the decision of what to do with your old car. These steps can help you make the choice that’s right for you.

Research Your Car’s True Value
The first bit of research you’ll want to do is establish the current value of the vehicle you are going to sell or trade in. Kelly Blue Book is a good place to start. Many other Internet sites and buying guides are available to assist you in your research. Make sure the information you are looking at is current, as prices can vary greatly from year to year. Don’t forget that other factors, such as mileage, accident history, maintenance records, and general appearance, will factor into the amount a buyer is willing to pay. The sentimental value you place on your car may be just that. “Your baby” may not be as charming to others as you think.

Decide How Soon You Must Sell
Determining your car’s value will help you decide if it is worth the time and effort to sell it yourself. Do you need the money as a down payment before you can buy your new car? Selling on your own may take more time than you think. Making appointments with prospective buyers as well as keeping your car clean and attractive may not be worth the additional dollars you’ll gain from the sale. It can be tempting to trade in your old car for an immediate down payment on your new ride.

Determine What is Most Important to You—Cash or Convenience
Dealers use your trade-in to make money. You’ve already determined the fair market price for your vehicle, but the dealer is going to pay you less. You must decide what price you are willing to pay for convenience. For example, if you believe you can get $5,000 selling the car yourself, and a dealer will give you $3,000, is it worth the $2,000 difference for the immediate gratification of having the cash in hand? For some people, the answer is yes. The hassle of advertising, taking to strangers (and the potential danger of strangers coming to their house to look at the car), and the days or weeks of waiting for the car to sell is enough to convince most people to let the dealer make the profit. But for some, the additional moneymaking potential is worth the additional effort.

Preparing Your Car for Sale or Trade-In
Whether you sell or trade your car, there are few things you can do to increase the perceived value. Make sure the car is very clean and any obvious flaws, such as a cracked windshield, have been repaired. Provide a list of all maintenance records, such as major repairs or recall work, so the buyer will know the history of the car. If necessary, deodorize the interior to remove smoke, pet, or food odors.

Ready to Finance Your New Car?

AllCom Credit Union offers new and used auto loans with rates as low as 3.49% APR* for up to 60 months.

*Learn more and apply today!

Laura Ybarra, President & CEO, AllCom Credit Union announces the recent promotion of Deborah Tilleman to Vice President, Retail. Tilleman joined AllCom Credit Union in April 2021 and has over 20 years of experience in the financial services industry. “Debbi has many strengths in management, lending and marketing and we are excited to have her leading our AllCom team” says Ybarra.

“The members of AllCom Credit Union are unlike any other members,” says Tilleman. “They are all so kind and appreciative of our team. Our staff is dedicated to ensuring each member has a great experience with AllCom. Since joining the team, I’ve received the best welcoming and look forward to the future with AllCom.”