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Branch Locations on Page 3

2013• Third Quarter

Featured In This Issue:

Holiday ClosingsColumbus Day

Monday, October 14Christmas

Wednesday, December 25Thanksgiving

Thursday & Friday, Nov.ember 28 & 29

Credit Unions’ Tax Status Well-DeservedCredit unions were created to provide financial services in a democratic, not-for-profit, cooperative manner—that is, with member ownership and control. Those unique characteristics are the foundation of the tax exemption. You may not even realize that your credit union doesn’t pay federal and corporate income tax.

Some bankers and their trade associations are asking legislators to tax credit unions, even though it was only banks that needed and took huge government bailouts. And the truth is, a tax hike on credit unions would be a tax hike on all American consumers.

What the folks who want to tax credit unions don’t make clear is that credit unions do pay property, sales, and payroll taxes.

Why credit unions are tax-exemptSuperior financial service to members distinguishes credit unions from other financial institutions, particularly banks. A bank’s first priority is to maximize shareholders’ profits—from the rates and fees it charges customers for loans and other services. A credit union’s top priority is to serve members with exceptional customer service, products, and services at fair prices.

Last year, on average, each credit union member got a direct financial benefit of $62. That came from lower rates on loans, higher returns on savings, and lower and fewer fees than he or she would have paid by doing business with a bank.

But that $62 benefit is only an average. Active members who use many credit union services often see even greater benefits. The difference amounts to about $6 billion spread among 96 million credit union members nationwide.

In addition to individual savings, credit union members also have access to a financial institution that they own and that keeps their interests first, providing exceptional service to members at all income levels.

How tax status affects consumersFurther, the tax exemption helps to ensure that all consumers have competitive choices in the marketplace.

In fact, for every $1 of their tax exemption, credit unions return $10 to consumers in better rates and lower fees. That’s a solid investment in our communities. The reality is, if credit unions were taxed, it’s unlikely members could still see the financial benefits they do now. Just as banks pass along their tax payments in fees and interest rates, if taxed, credit unions would have to pass those expenses along as well. The effect on how much you pay for credit union loans for cars, education, and houses, or the dividends you earn on credit union savings, would be significant.

By making and keeping financial services more affordable, Telco Community Credit Union helps you reach your goals and improve your financial well-being.

For the Best New-Car Deal...

Catching the Bad Guys; CU’s Look Out for Member’s Safety

How to Thwart ATM Skimmers

Fees Happening at a Checkout Near You

Smart Home Improvements...

continued on page 2

For the Best New-Car Deal, Look At Resale ValueWhen you drive a new car off the dealership’s lot, you’re still riding high on that new-car euphoria. But how will you feel five years later? Not all cars depreciate at the same rate. Choosing a vehicle that holds its value can save you money by keeping pace with your loan, and especially when you go to resell it.

According to Kelley Blue Book, the car with the best resale value in 2013 is the Toyota FJ Cruiser, a compact SUV projected to retain a whopping 63% of its original purchase value after five years. Toyota was also Kelley’s pick for the brand with the best overall resale value—the third time in four years Kelley chose Toyota for that recognition.

Meanwhile, the Washington D.C.-based personal finance publisher Kiplinger didn’t include a single Toyota model in its list of 2013 vehicles with the best resale value. Edmunds.com, an online automotive resource for consumers, chose Honda for the brand with the highest resale value in 2012.

We looked at selections from all three publications for an overview of the vehicles with the best resale values:

SEDANSKelley selected the Honda Civic, Honda Accord, and Toyota Avalon for the cars with the highest resale value in the categories of compact, mid-size, and full-size cars, respectively. The Civic, Kelley estimated, would retain

46.9% of its value after five years. For sedans less than $20,000, Edmunds also selected the Civic. For cars less than $20,000, Kiplinger chose the compact Ford Focus S.

SUVThe Toyota Sequoia was Kelley’s choice for the full-size SUV. Kiplinger chose the Lexus RX 350 for the best value-retention among midsize and large SUVs. Both Kiplinger and Kelley selected the Jeep Wrangler as a good choice for a compact SUV. Edmunds broke its selections up by price, choosing the Subaru Forester for SUVs less than $25,000 and the Honda CR-V for the $25,000 to $35,000 range.

TRUCKBoth Edmunds and Kelley gave the best resale value for compact trucks to the Toyota Tacoma. For full-size trucks, Kelley chose the Toyota Tundra; Edmunds selected the Ford F-150 and F-350.

VANBoth Edmunds and Kiplinger

chose the Honda Odyssey, with Kiplinger estimating its resale value at 40% of its original selling price after five years. Kelley’s choice was the Toyota Sienna.

LUXURY For cars costing more than $50,000, Kiplinger’s choice was the Audi A7. For sports cars priced more than $45,000, Edmunds selected the Ford Shelby GT500. Kelley chose the Lexus GS 350 for the luxury car with the best overall resale value in 2013.

If you’re considering buying a new car with a great resale value, ensure you get the best deal by visiting Telco Community Credit Union for low-interest financing.

Credit Unions’ Tax Status Well-Deserved (continued)

The value all consumers receive because credit unions are tax-exempt far outweighs the “cost” to the government.

If credit unions paid income tax, the contribution to state and federal treasuries would not make one penny difference in the taxes you pay as an individual. All taxpayers have legitimate

concerns about the federal budget deficit and state deficits as well. Credit unions and members already share in reducing those shortfalls: You pay taxes on dividends your Telco Community Credit Union accounts earn.

The credit union tax status is one of the highest yielding investments the federal government has made.

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Branch Locations& Business Hours

Asheville - Main Branch

712 Leicester HighwayAsheville, NC. 28806

828.225.5919

Monday - Thursday8:30 am - 5:30 pm

Friday8:30 am - 6:00 pm

Asheville - Downtown Branch

36 Tunnel RoadAsheville, NC. 28805

828.252.6888

Monday - Thursday8:30 am - 5:30 pm

Friday8:30 am - 6:00 pm

Skyland Branch

1871 Hendersonville RoadAsheville, NC 28803

828.210.2090

Monday -Thursday8:30am - 5:00pm

Friday8:30am - 6:00pm

Weaverville Branch

99 Weaver BoulevardWeaverville, NC. 28787

828.645.6003

Monday - Thursday8:00am - 5:00pm

Friday8:00am - 6:00pm

Morganton Branch

127 West Parker RoadMorganton, NC. 28655

828.433.0016

Monday - Thursday8:30am - 5:30pm

Friday8:30am - 6:00pm

Hickory Branch

355 US Highway 70 SWHickory, NC. 28602

828.322.8566

Monday - Thursday8:30 am - 5:30 pm

Friday8:30 am - 6:00 pm

Thwart ATM SkimmersEvery year sophisticated thieves steal millions of dollars from consumers by “skimming” their personal account information. Skimming, sometimes called “card cloning,” involves a thief installing a magnetic card reader, or skimmer, over the actual card reader at an ATM or gas pump.

When you swipe your card, the skimming device steals the information and transmits it to a remote computer. At the same time, a tiny, concealed camera reads your PIN as you key it in.

The camera often is in a bar the thief has affixed to the machine that looks the ATM’s trim. Criminals usually ensure their counterfeit equipment matches the machine’s color scheme. Their methods are growing more sophisticated,

including keypads that fit over the machine’s real keypad, eliminating the need for the camera.

Luckily, you can take steps to avoid becoming a victim:

• Use the same ATM as often as possible. Memorize how it looks, so you will know if anything about it looks fishy. • Inspect the ATM. If anything looks unusual—cracked, loose, scratched, or taped—don’t use it. • Avoid ATMs in popular tourist locations, as they’re common targets. When possible, use indoor ATMs, which are harder for thieves to tamper with. • When entering your PIN on the keypad, cover the keypad with your free hand to block the view of a spying camera.

Check your account often. If you notice unusual activity, contact us at Telco Community Credit Union immediately.

Catching the Bad Guys: Credit Unions Look Out for Members’ SafetyTerrorists, money launderers, computer hackers, counterfeiters--it’s enough to make you stay up nights worrying if you and your money are safe.

Credit unions play a role in helping the government bring these types of bad guys to justice. Some of your credit union’s actions to help law enforcement may be apparent, but credit unions take other “behind-the-scenes” steps to help protect you and our nation.

All financial institutions must have systems in place to generally track if there are unusual flows of funds into or out of both personal and business accounts. A financial institution must have some idea of what a person does or how the person normally uses the account to assess what is suspicious activity. The Bank Secrecy Act requires credit unions and other financial institutions to periodically look through their membership and customer names for matches against a list of names under federal investigation.

Credit unions also are required to comply with “OFAC.” OFAC isn’t a law but rather stands for the Office of Foreign Assets Control, also part of the Treasury Department. OFAC is responsible for making sure that Americans comply with about 10 laws involving foreign

trade sanctions, money laundering, and terrorism financing. OFAC maintains a

list of people, organizations, and countries that are prohibited from receiving or sending

funds or from opening accounts. All financial institutions must check the names of people who want to open accounts, take out loans, wire money, purchase money orders, and conduct other transactions against the OFAC list. If there is a match, a financial institution is required to block or freeze property and payment of any funds, and to report the action to OFAC. The “OFAC list” is publicly available on the Treasury’s website.

Telco Community Credit Union is committed to complying with all these laws designed to help assure that America’s financial sector remains safe, sound, and serving the financial needs of families and businesses.

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Smart Home Improvements Add Value When You SellHome improvement costs can add up quickly. But if you select smart projects, you can recoup a lot of what you spend when you sell the house.

Invest some time in planning, even if you don’t intend to make all improvements at once. If you want to make big changes, spend time with a designer or architect to lay out a master plan and get expert feedback about your ideas.

There are several basic concepts that improve the value of a home:

• Adding purpose or function to an awkward space• Finishing existing spaces in your home • Finding ways to use wasted space• Keeping projects in the style of your home and neighborhood

Here are several major projects that, executed well, add value to your home:

Updating your kitchen• Add a backsplash• Replace or refinish floors• Upgrade countertops, cabinets, and sinks• Add usable space with a center island• Improve lighting to make it feel warmer and more inviting• Add a pantry to provide coveted storage space

Adding or upgrading bathrooms• Add a second bathroom to a single family home• Replace tile or grout, sinks, and fixtures in existing bathrooms• Add a second sink in a master bath if space allows

Functional changes • Replace old windows with energy-efficient ones and replace siding. You’ll improve comfort even if you don’t recover the cost in reduced fuel use.

You’ll generally want to stay away from highly customizable projects that might bring personal enjoyment but won’t

have broad appeal, such as an oversized garage or personal spa.

Once you’ve determined which projects you

want to tackle, a home equity loan from Telco Community Credit Union is a low-cost way to help you pay for them.

We’re excited to help you refresh

your home.

A court settlement between retailers and the payments industry allows retailers--brick-and-mortar stores and onine merchants--to pass their credit card acceptance costs on to consumers in the form of a fee. Retailers can decide whether or not to charge this fee, according to the Electronic Payments Coalition, Washington, D.C.

Here are steps you can take to avoid checkout fees:

• Shop around. Merchants are allowed to charge a fee equivalent to what they’ll pay to accept your card, typically between 1.5% and 3% of the total purchase. Some merchants won’t charge fees for using a credit or charge card. Before you get to the cash register, look for in-store signage or ask a sales person if you’ll be charged a fee. If you will, consider shopping elsewhere.

• Know your rights. By law, merchants can’t surprise you with fees at the last minute, try to hide fees, or overcharge you. Retailers must provide clear disclosure of fees with signs at the store entrance, at the point of sale, and on the customer’s receipt. Receipts must list the amount of the fee, a statement saying the merchant is imposing a fee, and reassurance that the fee isn’t more than what it will cost the merchant to accept the card. Online merchants must disclose fees on their homepages.

• Request a discount. Don’t hesitate to ask merchants that charge a fee for a discount.

Checkout fees remain illegal in 10 states. Consumer Action recently published an online guide with information about checkout fees and a list of these states on its

knowyourcard.org website.North Carolina will allow the card fee.Just as you should shop around for merchants who don’t charge fees, you also should shop around for credit cards offering low rates and fees. Check out Telco Community Credit Union’s low-rate credit card. Stop by or visit us online at www.telcoccu.org

Fees Happening at a Checkout Near You

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