FAQ – Frequently Asked Questions
Please refer to the following answers to frequently asked questions about the Loan & Savings Ministry.
I have been a Methodist all 91 years of my life, and so it was natural to help my church while making a good investment for myself.
More than interest rates we invested with the Loan Fund to invest in God’s Kingdom. I’ve been an Indiana Methodist for 64 years and my wife a Ohio Methodist and now a Indiana Methodist for 61 years, as were our parents and grandparents. We are giving back what God has given us.
D. & M. McCleary
I am a UM pastor, and I received some funds from my grandmother’s estate. She was very active in her UM church. It was important to me to invest that money in a way that was totally consistent with my values and honored my grandmother at the same time.
Investing in IN U.M. Loan & Savings Ministry, Inc. gave us the opportunity to be involved in the ministry of building churches and at the same time earning a higher interest than our bank pays.
Frequently Asked Questions (FAQs)
Here are some frequently asked questions about the Ministry:
Will my investments fluctuate in value?
Certificates earn a fixed rate of interest for their term. Savings accounts are subject to periodic change in interest rates.
Is the Loan and Savings Ministry audited?
An annual audit is conducted by a CPA firm. An audit report is supplied to all investors.
When do investors receive their interest payments?
On 1, 3, and 5 year certificates, you can choose to receive interest payments either quarterly or annually, or to have interest reinvested annually. On 6 and 9 month certificates, interest will be paid at maturity. On 18 month certificates, interest will be reinvested at 12 months and again at maturity.
Can I reinvest when my certificates mature?
Certificates will automatically renew unless you request a withdrawal. At maturity, you can add to your Certificate, make full or partial withdrawal, or change to a different maturity term.
Are faxes or e-mail as good as originals for making changes or withdrawals?
Yes, faxes or e-mail is fine as long as the signature matches the authorized signature that we have on file.
Is there a grace period on certificates maturing?
The Fed is raising the interest rates, so are you raising your LF certificate rates?
Our deposit interest rates are established by our Board of Directors. It is our goal to offer rates higher than most other financial institutions. However, there is no attempt to have changes in our rates track changes in the Federal Discount Rate (which is commonly published).
Is the Loan and Savings Ministry insured?
No, it is not insured. We are not a bank or other financial institution. Therefore we cannot be insured by the FDIC. We are approved by the Indiana Securities Division to accept deposits. Your deposit purchases a security interest in our loan pool. Loans are made only to United Methodist churches and agencies in Indiana. We maintain a very high credit standard to minimize the risk of investment. To date, we have had no losses from loans issued and have never had to foreclose on a church property to collect the payment.
How often do the rates change?
The Loan and Savings Ministry Board reviews the rates and normally rates change the 1st of the month following the quarterly board meeting. However, rates may change more often depending on the loan demand. Remember, the rate issued on a Certificate remains the same for the full term of that Certificate. But when the Savings rates are changed, that changes the rate paid on current Savings accounts as well as any new accounts.
Why do I need an Offering Circular before I can make a deposit?
The Indiana Securities Division and the securities administrators of the other states where we offer Savings Deposits and Certificates of Participation require that we provide each potential depositor a copy of the Offering Circular before the Loan and Savings Ministry can accept a deposit from that person. We cannot accept a deposit from someone who has not received a copy of the Offering Circular. The Offering Circular is a Full Disclosure document that tells what we are about; why we take deposits; what we do with the deposits; what we offer in return for the deposits and the potential risks associated with our deposits.