August 2009  :
Laddering Your CD Portfolio

Kathy Chonody
Kathy Chonody
Senior EVP / CFO

For many investors, a Certificate of Deposit is a safe and reliable way to invest in today's market. But what if you lock into a specific rate and time period and weeks later, that rate has increased? Had you waited just a little bit longer to open your CD, you could be earning higher dividends. On the other hand, if you had waited any longer, the rates could have been much lower than your current rate.

What can you do to avoid this trap of uncertainty and ensure you get the best CD rates? Consider laddering your CD portfolio. Laddering gives you a higher blended yield on your money and the advantage of maintaining access to your money.

Here's an example of how CD laddering works:

Say you have $50,000 to invest in CDs. You can purchase five certificates for $10,000 apiece that mature in 6, 12, 24, 30, and 36 months respectively. Six months later, your first CD matures, yielding you $10,000 plus the dividends earned. If you need the money, you have the option to cash in with no penalty. If not, you reinvest in a new 36-month certificate at a higher rate because rates have moved up and 36-month CDs pay more than shorter term savings.

At 12 months, another CD matures. Again, if you don't need access to the money, you reinvest in a new 36-month CD. This cycle, or ladder, continues as each certificate matures and you reinvest in long-term CDs.

To help you determine which type of ladder is right for you, please stop by any branch location for more information and to speak with one of our experts today.

Back-to-School Savings!
Back-to-School Savings!

Stock up for school and save with VISA®! Use your FAIRWINDS VISA® debit or credit card and enjoy back-to-school discounts from merchants like, Barnes and Noble, and American Eagle.

Click here to learn more ways to save!

Youth Video Challenge Winner Announced

Congratulations to Sarah J. for her winning submission of the Teen Freedom Account!
Our Teen Winner

As the challenge winner, Sarah was awarded with her choice of three prizes that included an Apple iPhone, Nintendo Wii, and a $250 VISA® gift card.

Thank you to Sarah and everyone who submitted their entry!

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Sixty Year Anniversary Auto Loan Rate
Cash for Clunkers: What You Need to Know

Car Allowance Rebate System Are you thinking about participating in the new “Cash for Clunkers” program? Does your vehicle qualify for a program rebate?

Before you start shopping for a new, fuel-efficient car, be sure to read through these important tips from the CARS website:

  • Your vehicle must be less than 25 years old on the trade-in date.
  • Only purchase or lease of new vehicles qualify.
  • Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements).
  • Trade-in vehicles must be registered and insured continuously for the full year preceding the trade in.
  • You don't need a voucher; dealers will apply a credit at purchase.
  • The program runs through Nov. 1, 2009, or when the funds are exhausted, whichever comes first.

Be sure to check out regularly for important updates and recent news about the program.

How to Improve Your Credit Score

Seminar on August 20 Thursday, August 20

FAIRWINDS Corporate Center
3087 N. Alafaya Trail
Orlando, FL 32826
6:30 p.m. - 8:30 p.m.

Looking for ways to improve your credit score? Please join us at this free member seminar as Joy Kafka, Senior Loan Analyst for FAIRWINDS Credit Union, shares her expertise and knowledge of credit reports and credit history. Plus, FAIRWINDS ' lending experts will be available to pull live credit reports and provide you with techniques and strategies to help improve your score.

Click here to reserve your seat today.

Growing Your Sales Using the Internet

Seminar on August 25 Tuesday, August 25

FAIRWINDS Corporate Center
3087 N. Alafaya Trail
Orlando, FL 32826
6:30 p.m. - 8:30 p.m.

How can you help your business sales grow? Please join us at this free business seminar as Matt Weber from the Sales Growth Group shares his expertise on using the Internet to help maximize your business sales. Seminar topics will include: easy-to-use tips to generate more sales and leads from your site, why your website should be your most powerful marketing tool, and much more.

Click here to reserve your seat today.

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