WINTER 2012

watch your nest egg grow

Even in today’stough economy,

small efforts can leadto big payoffs

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Considering a Remodel? Now’s the time to tap your home’s equity for home improvementsPage 2

Tools That Make Banking Easier Our electronic services provide greater access and convenience for your busy lifePage 2

Uncovering Hidden Fees Search the fine print to see what banks are charging youPage 3

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Because many people slow down home improvement spending after the first of the year, now is a great time to take on that next remodeling project. You can score better deals on supplies and take advantage of contractors looking for business.

time to BuyHere are just a few ways you can save this time of year:

Contractors: This is a slow time for manycontractors, so you can typically find a qualified professional who is willing to negotiate lower project fees.

Furniture: New furniture styles hit the showroomfloor in February and August, so stores slash prices on older merchandise to make room for new arrivals.

Appliances: New appliances are seasonal too.So last year’s remaining models are discounted when the calendar turns.

Carpet and Flooring: During the holidays, carpet

start the new year with remodeling savings

Be In the Know when you’re on the go!

Looking to buy your first or next home? Attend one

of our home buying workshops to learn what you need to get approved, why working with a

real estate agent is a smart idea, and what you can expect from

the home buying process.

Home BuyingSeminars

Thursday, February 16Tuesday, March 20

6:30 to 8 p.m.

SchoolsFirst FCU Administrative Office

15442 Newport Ave.Tustin, CA 92780

as a schoolsFirst Fcu Member, you have access to low rates and fees.

uncovering hidden Fees

MeMBers-only rates Beat the competition

As part of our ongoing commitment to making yourbanking experience the best it can be, we’ve enhancedour electronic services to better serve your needs—no matter where you are.

When banks announced potential charges for debit cards, the consumer outcry was enough to make them change their plans. But that doesn’t mean the fees will go away, they’ll just go somewhere else you may not be looking. A Pew Charitable Trusts study found that the average checking account had 40 additional service fees ranging from $1.50 to $175.*

And checking accounts aren’t the only places fees hide. With your bank credit card, you could be paying fees of up to 5% on balance transfers and cash advances, plus annual and over-limit fees. Be sure to check the fine print on your statement.

Smart saving often starts with smart spending. Take the time to review all your financial accounts and you may find ways to spend less so you can save more. And remember, as a Member of SchoolsFirst FCU, you have access to several no- or low-fee products and services, plus a representative at every branch and on the end of every call who can help you make the most of your Membership.

* Hidden Risks: The Case for Safe and Transparent Checking Accounts,April 2011, The Pew Health Group

You already know the old truth of investing: grow your nest egg sooner to have more money later. But when money is tight, it can be difficult to save on a scheduled basis. The good news is you don’t have to contribute large sums every month in order to build a comfortable cash cushion. After all, when it comes to savings, it isn’t just the amount of cash you put in–it’s also the time it spends working for you.

saving now adds up Faster than you think

Finding the Money to InvestNow that you see how quickly a small amount can grow into something significant, how do you find those extra dollars to stash every month? Check out the BALANCE Financial Fitness Program “Fritter Finder” on our Web site to track your expenses for a week. You might be surprised how a few small adjustments can mean an extra $5 or $10 to save every week. And when you set up automatic transfers to an investment account, you can capture that $5 or $10 more conveniently.

Knowing where to Invest ItWith a plan in place for finding your seed money, the next step is determining where to invest it. Take advantage of a complimentary financial checkup with one of our licensed SchoolsFirst FCU financial advisors8. They provide guidance on savings plans, retirement plans, investments and more.

Saving for tomorrow happens with simple steps you can take today. Call, 800.462.8328, visit schoolsfirstfcu.org or come in to talk to us about how you can get started.

you can save For the Future, even In today’s tough economy

Introducing eAlertsNow you can set and receive helpful, free reminders aboutyour Checking, Savings, and Loan accounts via email or text1.

•Find out the minute a deposit is credited to yourChecking or Savings account with Deposit Notices.

• See how much money you have available withBalance Alerts.

• Know when your balance is getting low withLow Balance Alerts.

• Get a reminder about an upcoming payment due datewith a Payment Due Notice.

• Be reminded when your Certificate or IRA is aboutto mature with Maturing Certificate Alerts.

This service is free to all Members and takes just minutesto set up. Sign up now at schoolsfirstfcu.org/eAlerts.

• Talking to a humanrepresentative

• Cashing in your coins withour automatic coin counter

• Replacing your debit card9

• Getting a paper statement• Online Bill Payment• Receiving money via

wire transfer

here are just a few services you don’t

pay a fee for at schoolsFirst Fcu:

Investment of $25 or $50 in a typical IRA over 10 and 20 years at 7.0o% APY. This is an example. Earnings are not guaranteed.

*Consult your tax advisor about the deductibility of interest.

Checking Fees

SchoolsFirst Bank of WellsFCU America Chase Fargo Citibank

APR 8.50%3 10.99% 11.99% 10.15% 11.99%

Balance Transfer Fee 0% 4% 3% 3% 3%

Cash Advance Fee 0% 4% 3% 5% 5%Rates as of 12/12/11. Bank rate sources obtained via published information.

Rates as of 12/12/11. Bank rate sources obtained via published information.

Credit Card

Our low-rate, Low to No Fee Visa® offers zero-liability fraud protection, purchase protection, travel and emergency assistance, auto rental insurance and more.

Whether you’re purchasing a new or used car, or looking to refinance your existing car loan from another lender, SchoolsFirst FCU delivers competitive rates and promises a simple funding process.

Auto Loan or Refinance

New Cars2 36 48 60 72

schoolsFirst FCU 2.69% 2.69% 2.69% 2.99%

Bank Average 3.43% 3.58% 3.75% 4.39%

Used Cars2 36 48 60 72

schoolsFirst FCU 2.90% 2.90% 2.90% 3.19%

Bank Average 3.58% 3.73% 3.90% 5.99% All rates quoted are APRs as of 12/12/11. Bank rate sources obtained via published information.

February 11 – 9 a.m. to 3 p.m.Long BeachEnterprise Used Car Dealership3384 Cherry Ave. Long Beach, CA 90807

February 18 – 9 a.m. to 3 p.m.TustinSchoolsFirst FCU Administrative Office15442 Newport Ave, Tustin, CA 92780

RiversideEnterprise Used Car Dealership7807 Indiana Ave.Riverside, CA 92504

Mark your calendar so you don’t miss the low rates, special incentives and great selection of affordable used cars at our upcoming Enterprise Used Car Sales Events.

enterprise used car sales events

and flooring is in high demand. When the new year hits, however, demand drops considerably, and so do prices.

time to applyIf you’ve been considering making an update to your home, now’s the time! Home equity loan rates are still low, so the financing could cost less than using other forms of payment. You’ll enjoy a fixed rate with low payments, and the interest may be tax deductible*—a financial advantage you don’t get with other forms of financing.

To get started, call 800.462.8328, ext. 8288.

enhancing schoolsfirstfcu.orgYou have asked for new tools to help manage your accounts and communicate with the credit union. So in addition to all the functionality you enjoy today in Online Banking, we will be introducing a new Web site experience—all built on a platform to support future improvements for you. Watch for more details soon!

Mobile Banking updatesWe’re adding features to SchoolsFirst FCU Mobile Banking. Soon, you can:

• Transfer funds from your accounts to another Member—helpful for busy parents who need to send money to their kids.

• Pay more than just the set monthly payment on your credit card and loan payments.

• Manage more than one account, not just the first one you enrolled.

saving $25 a month

saving $50 a month

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

10 years 20 years

Total Savings:$4,402.62

Total Savings:$13,200.10

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

$28,000

10 years 20 years

Total Savings:$8,805.21

Total Savings:$26,400.22

1. Data and text charges may apply. Check with your mobile provider. 2. Our auto loan program features a range of rates based on various factors, including the applicant’s credit rating. Rates as of 12/12/2011 are 2.69%-18% APR on new autos and 2.90%-18% APR on used autos. Lowest rates reflect a 0.75% discount for automatic payment transfer from your SchoolsFirst FCU account. Estimated monthly payments range from $1.52-$3.62 per $100 borrowed. Maximum loan term based on various factors, including amount financed. Financing available up to 100% of the Manufacturer Suggested Retail Price on new autos (Kelly Blue Book Suggested Retail Value on used autos) or purchase price, whichever is less; plus tax, license, documentation fees, GAP and Major Mechanical Protection. 3. Our credit card program features a range of rates based on a variety of factors, including the applicant’s credit rating. As of 12/12/2011 Gold and Platinum card rates range from 8.5% – 17.9% APR; Rewards card also available with rates from 11.5%–17.9% APR and $25 annual fee which is waived the first year. Rates are variable and subject to increase after account opening. Foreign transaction fee 2% of the transaction. 4. Monthly service fee waived if you have direct deposits totaling $500 or more made to this account OR with a $1,500 minimum daily balance OR with an average daily balance of $5,000 or more in linked deposits/investments. 5. Monthly service fee waived if you make at least one qualifying direct deposit of $250 or more each statement period OR maintain an average balance of $1,500. 6. Monthly service fee waived when you do ONE of the following: sign up for Direct Deposit OR maintain an average daily balance of $1,500. 7. Monthly service fee waived when you do a combination of five of the following: Direct Deposit, any Debit Card Purchase, Bill Payments, Auto Deductions, ACH Payments, Checks Paid, or Cash Withdrawals at any ATM. 8. Representatives are registered, securities are sold, and investment advisory services are offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by SchoolsFirst FCU. CBSI is under contract with SchoolsFirst FCU, through the financial services program, to make securities available to Members. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty states of the United States of America. 9. Debit cards are replaced fee-free the first three times the card is lost or stolen. 10. CA License 0581192. 11. $15 Membership fee waived. $5 minimum deposit required to establish and maintain Membership. Eligibility subject to verification. Junior Varsity accounts (minors age 12 and under) require a parent/legal guardian on all shares; Varsity accounts (minors age 13 -17) require a parent/legal guardian on certain products and services. See our Account Disclosure for more details.

Federally insured by NCUA.

Coming Soon!Member Rewards Day will be back this April. Stay tuned for details.

Holiday NoticeAll SchoolsFirst FCU locations will be closed in observance of the following holidays:

Monday, Jan. 16 Martin Luther King, Jr. Day

Monday, Feb. 20President’s Day

Emergency Card Support Available 365 days a year from 5 a.m. to 12 a.m.

Please recycle.

REAL MEMBER, REAL SAviNGS

We’re Here For YouGo Onlineschoolsfirstfcu.org

Call Us 800.462.8328

TellerPhone 800.540.4546

ATM Locations Visit our Web site or mobile app for a complete listing

of fee-free ATMs, or simply text* your address, intersection or ZIP Code to 692667 to find one near you on-the-spot.

* Data and text charges may apply. Check with your mobile provider.

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While there remains significant

uncertainty in the economy, financial

markets, and in the world in general,

we have a great deal to be thankful for

as we reflect back on the past year.

We have been able to maintain our

strong financial position without

introducing new fees or increasing

existing ones. In fact, thanks to our

Members’ support and participation,

we were able to enhance a number

of products and services and increase

our market penetration with the total

Membership reaching a half million.

As a financial cooperative, with a field

of Membership limited to school

employees and their families, a greater

number of Members and increased

patronage make it possible to expand

and enhance our products and services

and weather the toughest of storms.

Thank you for your Membership,

continued loyalty and enthusiastic

support. We are grateful and remain

committed to providing the quality,

personalized service you deserve. Our

best to you and yours for a prosperous

and joyous new year.

Rudy Hanley, President and CEO

Beatrice Shinn was looking for a used car with good gas mileage for her daily commute from Huntington Beach to San Dimas, where she teaches fifth grade. She didn’t want to haggle over financing with the dealer, so she came to SchoolsFirst FCU to discuss her options for an auto loan.

When she found the car she’d been eyeing, the dealer offered her a high rate of 20.75% APR. But Beatrice brought her purchase order to us and we financed her auto loan at a much lower rate of 4.94% APR.

Over the life of her loan, Beatrice will save more than $7,900.And, because she added a low-cost Major Mechanical Protection policy through the Credit Union, she’ll have added peace of mind.

“In the past when I’ve purchased a car, I’ve always felt the dealer just tried to wear me down. But

the credit union cared and wanted me to get the best deal. My loan

officer focused on what was better for me.”

We are proud to support the outstanding teachers who serve our communities through exceptional teaching and mentoring of our youth. Congratulations, teachers!Orange CountyDoug Bettencourt, Juliet Morris Elementary SchoolSunshine Cavalluzzi, El Dorado High SchoolAnne McSherry Devine, McFadden Intermediate SchoolChristina Kim, Lambert Elementary SchoolKay Ferguson Ryals, Irvine Valley College

San Bernardino CountySusan Clewley Barkdoll, North Verdemont Elementary SchoolRichard Holk, Ayala High SchoolDarlene Pitman, Mesa View Middle SchoolCindy Roy, Valle Vista Elementary SchoolKay Williams Pierce, Ontario High School

congratulations to the 2012teachers of the year

Beatrice Shinn Teacher at Shull Elementary School Member since 2008

Mobile and Text Banking schoolsfirstfcu.org/mobile

Facebook and Twitter

Bundle your auto & home Insurance For Big savings Ask us how Member Insurance Services10 can help you save on auto and homeowners insurance.

With our personalized service and expertise, we’ll help you find the best policy for your needs by reviewing options from our variety of providers. Plus, AARP members receive a special discount through The Hartford.

Call 800.462.8328, ext. 4309 or send an email to insurance@schoolsfirstfcu.org for a free quote.

Kids Join Free11

Help your kids benefit from products and services designed to help them build their financial future:

• Youth Debit MasterCard® features preset spending limits and free Mobile & Text Banking1.

• Savings account can be opened with as little as $5.

• Free Checking with no minimum balance requirement.

Visit a SchoolsFirst FCU branch to sign up your child for Membership today.

It’s FREE through the end of February.

Free gIFt!