WASHINGTON (6/11/09)--Less than 14 business days after the National Credit Union Foundation (NCUF) announced the availability of federally guaranteed certificates of deposit (CDs), credit unions have placed $10.2 million into the new offerings as part of the Community Investment Fund (CIF). Forty-two credit unions have more than tripled their dividends by converting from CIF share accounts to CDs. By taking this action, these credit unions have also secured a full federal guarantee for two years. The National Credit Union Administration (NCUA) guarantees all principal and quarterly fixed-rate dividend payments on two-year CIF CDs (News Now May 22). In addition, nine more credit unions have become first-time CIF investors. Some are extending their CIF CD terms as long as three years. "The $10.2 million definitely surpasses our projection for the first two weeks," said NCUF Deputy Director Steve Bosack. "Our ultimate goal is for the new CD to attract $30 million by Sept. 30," he told News Now. CIF allows members of corporate credit unions to earn dividends while donating to credit union charitable organizations--without creating an expense on donors’ balance sheets. New deposits in CIF help reduce credit unions’ expenses for NCUA’s Corporate Stabilization Program. When asked what natural person credit unions can do to support Corporate Stabilization, NCUA officials explained, “The more credit union funds placed in the corporate credit union system, the less reliance on external borrowings…. The less reliance on external borrowings, the less likely the potential need to sell securities at distressed prices.” “We encourage all credit unions with liquidity-- non-CIF investors as well as current CIF investors-- to place funds now in a CIF CD,” said NCUF Executive Director Steve Delfin. “CIF deposits earn dividends that fund credit union foundation programs and grants across America. For credit unions and members who need help to survive the current financial crisis, these charitable programs and grants have never been more critical.” Half of CIF dividends are donated to the foundation. It dedicates half of those donations to fund national programs including REAL Solutions, Credit Union Development Education, Innovation Grants, Biz Kid$, and CUAid.coop. NCUF grants the other half of CIF donations to each investor’s state credit union foundation or league. State credit union organizations use their CIF grants for a variety of charitable activities: financial education, training, credit union membership outreach, small credit union development, affordable housing, and disaster relief. Credit unions interested in the latest rates or CIF investment options can contact NCUF, their state credit union foundation or league, or corporate credit union.