The economy, financial markets, and you

As we enter the autumn months of 2008, we want to thank all of our new and long-time members for your continued confidence in DCU. Over 30,000 people became DCU members so far this year, bringing us to over 350,000. The specific reasons people come to DCU are as unique as every member, but one thing is sure – they sense correctly that DCU has their interests at heart. In these uncertain times, people are looking for an institution that has the strength, ability, and desire to take care of them. Thank you.

The continuing impact of the collapse of the sub-prime mortgage market on financial institutions has had a major impact on so many Americans. While we take pride in reporting that we were never part of that problem, we feel for the consumers who have been hurt through no fault of their own. We would never encourage our members to take out loans for homes, cars, or anything they could not afford to repay. It's not good for our members who borrow, nor is it good for the rest of our members who provide most of the money we lend.

Because of that common sense philosophy, we remain in position to help more people than ever purchase homes within their means, refinance their homes to save money, purchase economical cars to drive to work, and pay for a college education. As a growing number of financial institutions are turning away loan business, we stand ready and able to serve as we always have.

What's more, more people have been turning to DCU as a safe place to save. In this turbulent financial market, it is comforting to know that DCU is always looking out for your financial health. In addition, your deposits are insured by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the US government. Visit NCUA insurance information for details on this insurance and how you can maximize your coverage.

Even the nation's most prominent economists cannot predict what will happen to the US economy in 2009, but history has taught us all downturns are temporary. To protect your financial health against uncertainty, please consider these steps:

Build up your savings to cover the unexpected – Two months of living expenses would be great protection, but any amount will help.
Economize – Rising gasoline prices have forced many Americans to look at how they spend their money. Are there ways you can spend less or not spend at all on some things? Many people are changing where they shop, what they buy, how much they drive, and what they drive so they can make each dollar go farther.
Stay focused on your long term goals – If you have a 401(k) with your employer, resist the temptation to borrow from it or reduce your contributions. If you have an IRA, continue to make regular contributions if you can.
Stay vigilant – In uncertain times, criminals often prey upon people's fears. Don't fall for anything that seems too good to be true. Protect your passwords and personal information. Make sure you have up-to-date internet security software on your computer. At the same time, we're using state-of-the-art technologies and procedures to protect you and DCU.
Ask for help early – If your financial situation is turning bad, let us know as soon as you can. There are ways we can help or put you in touch with others who can, but you need to act early.

Remember, DCU is here for you. You can depend on us in good times and bad.

Digital Federal Credit Union
220 Donald Lynch Boulevard
PO Box 9130
Marlborough, MA 01752-9130
508.263.6700 • 800.328.8797