PFFCU Member Bonus FAQs

What is the Member Bonus Program?

In addition to the many other benefits of PFFCU membership, in 2019 we plan to rebate funds to our members. All accounts in good standing are eligible to receive up to $1,000! It’s our way of saying we value your membership and thank you for your business. As a member, you may earn 5-10% of your loan interest paid and your deposit interest earned. We also know that overdrafts happen to even the most careful of people, and we will rebate 5-10% of your paid courtesy overdraft fees. The Member Bonus is calculated on deposit interest earned, loan interest paid, and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. First mortgages sold to Fannie Mae may receive up to $100. The payout percentage of the Member Bonus will be dependent on PFFCU’s financial performance and is not guaranteed.

Why is PFFCU offering a Member Bonus Program?

As a member-focused organization, our mission is to be your primary financial services provider by delivering superior member service, lower loan rates, higher savings yields, and lower fees. In 2019, we want to do more by putting more cash back in your pocket with our Member Bonus Program.

How do I qualify for the Member Bonus?

There are four ways to qualify for a Member Bonus. Accounts in good standing will receive 5-10% of their loan interest paid and their deposit interest earned. We also know that overdrafts happen to even the most careful of people, and we will rebate 5-10% of paid courtesy overdraft fees. Members with an active Fannie Mae mortgage loan may receive up to a $100 Member Bonus. The payout percentage of the Member Bonus will be dependent on PFFCU’s financial performance and is not guaranteed.

What is an account in good standing?

An account in good standing for the Member Bonus Program is a member that has an open S0001 Savings Account and has not caused PFFCU a loss with a charged-off loan(s) and/or a negative share charge-off(s) in the last five years.

Is the Member Bonus paid every year?2

We intend to continue the Member Bonus Program into the future. The Member Bonus amount, when paid, will be dependent on PFFCU’s financial performance and is not guaranteed.

Why will members receive multiple Member Bonus postings?

A portion of the Member Bonus is reportable on form 1099-INT along with other savings and deposit interest you earn in 2019.

  • Member Bonus Loan/COD is calculated as a rebate of interest paid on Auto, Credit Card, Personal Line of Credit, Signature, Pledge and Home Equity Loans. It also includes a rebate of paid Courtesy Overdraft Fees. Since interest paid on these loan types and fees are generally not tax deductible by borrowers, rebating interest as part of the Member Bonus will not be reported on a 1099-INT form.
  • Extra IRA Dividend is calculated on IRA interest earned and is generally not taxable and therefore will not be reported on a 1099-INT form.
  • Member Bonus Deposit/Mtg is calculated on Deposit interest earned and Mortgage interest paid, both of which may be reported to the IRS. Consequently, the Member Bonus associated with these amounts may have tax consequences. Therefore, the amounts will be reported on a 1099-INT form.

Police and Fire Federal Credit Union does not provide tax advice, please consult a tax advisor.

When will the Member Bonus be paid?

The Member Bonus will post in December 2019.

Why did you choose November 30 to determine my Member Bonus?

The November 30 date was chosen in order to award the Member Bonus in the 2019 calendar year. We will use the actual loan interest paid, deposit interest earned, and any paid courtesy overdraft fees from January 1, 2019 through November 30, 2019. Members with an active Fannie Mae mortgage loan may receive up to a $100 Member Bonus. The Member Bonus will be posted in December, 2019.

What is the maximum Member Bonus payout?

All accounts in good standing are eligible to receive up to $1,000! It’s our way of saying we value your membership and thank you for your business. Members may earn 5-10% of loan interest paid, deposit interest earned, and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. Members with an active Fannie Mae mortgage loan may receive up to a $100 Member Bonus. The payout percentage of the Member Bonus will be dependent on PFFCU’s financial performance and is not guaranteed.

What is the minimum Member Bonus payout?

The Member Bonus is calculated on deposit interest earned, loan interest paid, and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. Your Member Bonus must total at least $1. If the calculation is less than $1, no Member Bonus will be paid.

How is the Member Bonus calculated?

The Member Bonus is calculated as 5-10% of deposit interest earned, loan interest paid, and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. Members with an active Fannie Mae mortgage loan may receive up to a $100 Member Bonus. The payout percentage of the Member Bonus will be dependent on PFFCU’s financial performance and is not guaranteed. You must have an account in good standing and your Member Bonus must total at least $1. The maximum Member Bonus payout is $1,000.

What is a Courtesy Overdraft fee?

PFFCU offers a Courtesy Overdraft Program (COD), where PFFCU will pay overdrafts, up to a predetermined limit, for a fee, if there are insufficient funds in your savings account and you either don’t have available credit on your Personal Line of Credit (PLOC) or you have not selected the PLOC option to cover overdrafts. When a transaction item is paid through the COD program, it causes your checking account to have a negative balance, which must then be repaid.
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Why are only Courtesy Overdraft fees part of the Member Bonus Program?

PFFCU fees are some of the lowest in the country. Our Courtesy Overdraft service is designed to benefit our members when an unexpected overdraft happens. Because this service is very popular with our members, we decided to include Courtesy Overdraft fees in our Member Bonus Program to rebate a portion of those fees at year end as a thank you for their trust in PFFCU.

What loan products are included in the Member Bonus Program?

The Member Bonus Program includes all of the following loan products: Auto, Credit Card, First Mortgage Balance Sheet Loans (i.e. 10 and 15-Year Fixed Mortgages, 5/30 ARMs and 7/30 ARMs), Loans sold to Fannie Mae, Home Equity Loans, Home Equity Lines of Credit, Personal Lines of Credit, Signature Loans and Pledge Loans.

What loan products are excluded from the Member Bonus?

Student Loans are excluded from receiving a Member Bonus.

What about Mortgage Loans sold to Fannie Mae?

30-Year Fixed Rate Mortgages sold to Fannie Mae may receive up to a $100 Member Bonus. PFFCU sells 30-year fixed rate first mortgages to Fannie Mae for interest rate risk management reasons. The interest on these mortgages is paid to Fannie Mae and not to PFFCU; however, as a thank you for choosing to do business with us, members with an active Fannie Mae mortgage on November 30, 2019 may receive up to a $100 Member Bonus. This is in addition to the 5-10% of loan interest paid, deposit interest earned, and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. The payout percentage of the Member Bonus will be dependent on PFFCU’s financial performance and is not guaranteed. You can refinance a Fannie Mae mortgage into a 15 or 20-year loan or 7/30 ARM and your interest paid will be calculated as part of the Member Bonus Program. Start the process online, or call 800-486-9592 and ask to speak to a Mortgage Advisor to apply by phone or to schedule a personal appointment.

Why are loans sold to Fannie Mae?

PFFCU sells 30-year fixed rate first mortgages to Fannie Mae. Prior to 2018, PFFCU also sold most of what we originated for 20-year fixed rate first mortgages to Fannie Mae. Mortgages are sold to Fannie Mae for interest rate risk management reasons and to replenish our funds in order to lend more money to home buyers at an affordable rate. Unlike many lenders, PFFCU maintains the servicing of all of our mortgages, including mortgages sold to Fannie Mae. You can quickly identify if your loan was sold to Fannie Mae in Online Banking by clicking the Account Link. It will show FNMA in the loan description.

What steps do I need to take to refinance my mortgage so that it’s calculated as part of the Member Bonus program?

Starting the process is easy and you will enjoy the highest level of Service, Value, Convenience, and Trust throughout the process. In fact, 93% of surveyed members rated PFFCU as Exceptional or Superior in the overall Real Estate experience. Start the process online, or call 800-486-9592 and ask to speak to a Mortgage Advisor to apply by phone or to schedule a personal appointment.

Why did you exclude Student Loans?

PFFCU owns a very small portfolio of Student Loans that are serviced externally. We do not originate Student Loans and it is not a loan product we offer to our members.

If I paid interest on a loan that I paid off, will I still qualify for the Member Bonus?

If you paid loan interest during this timeframe on your paid off loan, you’ll receive a percentage of the loan interest paid. First mortgages sold to Fannie Mae must be active as of November 30, 2019 to receive the Member Bonus.

What deposit products are included in the Member Bonus?

The Member Bonus Program includes all Share, Certificate, and IRA deposits. The program excludes Escrow deposits and the Visa and Mortgage Accumulation balances.

What deposit products are excluded from the Member Bonus?

Deposit products excluded from the Member Bonus are Escrow, Mortgage Accumulation, and Visa Accumulation.

What types of accounts are included in the Member Bonus?

All PFFCU accounts are included in the Member Bonus.

What types of accounts are excluded from the Member Bonus?

No PFFCU accounts are excluded from the Member Bonus.

How can I increase my Member Bonus? Refinance your loans elsewhere with PFFCU!

Do you have a credit card, mortgage loan, auto loan or checking account with other financial institutions? Or are you thinking about purchasing a new vehicle or home? The more PFFCU products and services you use, the more you can increase your Member Bonus payout while receiving superior member service, lower loan rates, higher savings yields, and lower fees. Apply online at PFFCU.org, stop by any PFFCU Branch or call 215-931-0300 or 800-228-9901 to speak to a Member Service Representative.

What if I have accounts at other financial institutions?

PFFCU’s mission is to be our members’ primary financial services provider. We invite you to maximize your Member Bonus by doing more business with PFFCU. By moving your checking, loans, mortgage, savings and other accounts to PFFCU, you’ll receive superior member service, plus increase your Member Bonus payout. Apply online at PFFCU.org, stop by any PFFCU Branch or call 215-931-0300 or 800-228-9901 to speak to a Member Service Representative.

Will I have to report my Member Bonus on my 2019 taxes?

A portion of the Member Bonus will be reported on form 1099-INT along with other savings and deposit interest you earn in 2019.

  • Member Bonus Loan/COD is calculated as a rebate of interest paid on Auto, Credit Card, Personal Line of Credit, Signature, Pledge and Home Equity Loans. It also includes a rebate of paid Courtesy Overdraft Fees. Since interest paid on these loan types and fees are generally not tax deductible by borrowers, rebating interest as part of the Member Bonus will not be reported on a 1099-INT form.
  • Extra IRA Dividend is calculated on IRA interest earned and is generally not taxable and therefore will not be reported on a 1099-INT form.
  • Member Bonus Deposit/Mtg is calculated on Deposit interest earned and Mortgage interest paid, both of which may be reported to the IRS. Consequently, the Member Bonus associated with these amounts may have tax consequences. Therefore, the amounts will be reported on a 1099-INT form.

Police and Fire Federal Credit Union does not provide tax advice, please consult a tax advisor.

Can I tell my family and friends about the Member Bonus?

Yes. We encourage you to refer your family and co-workers to PFFCU. Our mission is to be our members’ primary financial services provider, focusing on loans and deposits. We will earn your family and co-workers Trust by providing quality financial products at very attractive prices, delivered with superior Service, Value, and Convenience. Plus, when you share the benefits of PFFCU membership, you and the new member can each get up to $400. Learn more.

If I join now, will I qualify for a Member Bonus this year?

PFFCU welcomes new members any time of the year, and the sooner you join, the more opportunity you have to receive a $1,000 Member Bonus. The Member Bonus is calculated on deposit interest earned, loan interest paid and courtesy overdraft fees paid January 1, 2019 through November 30, 2019. You must have accumulated enough deposit interest, loan interest or courtesy overdraft fees to qualify for at least a $1 Member Bonus.


 

The Police and Fire Federal Credit Union Member Bonus Program is subject to change at any time, without notice. The Member Bonus amount, when paid, is dependent on Police and Fire Federal Credit Union’s financial performance and is not guaranteed. Student Loans are not eligible for the Member Bonus. To receive the Member Bonus, you must meet all eligibility criteria and have an account in good standing on the deposit date. You must not have caused PFFCU a loss with a charged-off loan(s) and/or a negative share charge-off(s) in the last five years. Member Bonus payout requires that you must have accumulated enough deposit interest, loan interest or courtesy overdraft fees to qualify for at least a $1 Member Bonus. Maximum Member Bonus payout is $1,000. First mortgages sold to Fannie Mae that are active as of November 30, 2019, may receive up to $100 for the Member Bonus Program in 2019. The Member Bonus may be taxable and a portion will be included on a 1099-INT form. Police and Fire Federal Credit Union does not provide tax advice, please consult a tax advisor.

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