What’s New in the CU

Security Tips

• HOW TO PROTECT YOURSELF FROM FRAUD – State of Hawaii’s Fraud Prevention and Resource Guide - Financial and consumer fraud happens right here in our islands! This state multi-agency guide was developed to introduce you to common scams happening in our islands today, to offer information on how to protect you and your family and to let you know where to get help.

• COVID-19 (Coronavirus) Related Cyber Scams - With the COVID-19 pandemic affecting all of us, fraudsters are quick in trying to catch the unsuspecting person in a time of panic. The Hawaii-Pacific Electronic Crimes Task Force has issued a statement of the types of scams that are circulating and how to recognize them.

• CISA Tips for Secure Holiday Online Shopping - With the holidays quickly approaching, fraudsters are gearing up for the online holiday shopping season. The United States Secret Service has collaborated with the Cyber Security and Infrastructure Security Agency with these tips before checking out your online holiday cart.

• CFPB Debt Collection Scams Video - Dealing with debt collection issues can be challenging—especially when you’re not sure if the person you’re being contacted by is a legitimate debt collector or someone trying to scam you.

• Phishing Tales - Adult Protective Services announced a new text scam that has hit Hawaii. This messaging scam appears to come from your financial institution, but in reality, it originates from scammers who are attempting to gain personal information from you.

  Be aware, your credit union would NEVER:

  • Send a text message to you

  • Call you to ask for any personal information, such as your SSN, account number or PIN

Important Message

Several of our members have recently received a text message that appears to be from us.

This is a spoof attempt!

We will never text you about your account or loan.  Do NOT open the link as it may contain malware.

Please continue to check this section to keep yourself informed about scams.

Interactive Voice Response System for VISA Debit Cards

We are excited to announce our new self-service Interactive Voice Response System. This new service will allow you to select your own PIN when you activate your new Visa debit card. If you forget your PIN, you can use the service to reset your PIN instantly. No more waiting for your PIN to arrive in the mail!

Call (800) 757-9848 to reset your PIN today.

American Express Says Farewell to Traveler’s Checks

Towards the end of November, we received notification from American Express that they will be ceasing the supply and sale of their traveler’s checks in the United States, effective March 31, 2021.

This means that we will not be offering traveler’s checks after that date.

We have been assured by AMEX that they will continue to honor the redemption of traveler’s checks beyond that deadline. However, we encourage members to redeem their unused travelers checks as soon as possible.

Mobile App Available

Mobile Deposit Capture Update

We are pleased to announce that we have updated our mobile deposit capture. You can now:

• Make deposits to your checking or savings

• $6,000 daily single deposit limit and $10,000 aggregate deposit limit.

Don’t forget these advantages in using mobile deposit capture:

• Make check deposits at your convenience.

• No more driving and waiting in line to make your check deposits.

• Best of all, this service is FREE!

Please check the Mobile Deposit Capture FAQs for more information

Member Benefits

Kahului FCU considers insurance an important part of your financial well-being.  To help you protect what matters most in your life, we’ve joined with TruStage Insurance making life insurance products available to our Members that are budget-friendly and built on credit union values. 

*Insurance and warranty products are not products of the credit union and are not obligations of, or guaranteed by the credit union. Insurance or warranties may be purchased from an agent or an insurance company of the member's choice, and the credit union makes no representations as to the services of any provider. the product offered is not a deposit and is not federally insured by NCUA. The insurance may lose value.

Changes in the Funds Availability Policy

Generally, beginning on the effective date herein your deposits of checks will be available for withdrawal on the first business day after the day we receive your deposit as explained in our full Funds Availability Policy Disclosure. Generally, this change will adjust dollar thresholds for inflation increasing funds available more quickly than under our previous policy. Certain exceptions will continue to apply. You should be sure to read all provisions of our Funds Availability Policy carefully in order to fully understand when funds may be available from certain deposits.

These changes will be effective on June 01, 2020. Your acceptance and agreement to the revised terms will be shown by your continued use of any existing or new account(s) or services after the effective date.

1099 INT Instructions

Instructions for Recipient

The information provided may be different for covered and noncovered securities. For a description of covered securities, see the Instructions for Form 8949. For a taxable covered security acquired at a premium, unless you notified the payer in writing in accordance with Regulations section 1.6045-1(n)(5) that you did not want to amortize the premium under section 171, or for a tax-exempt covered security acquired at a premium, your payer must generally report either (1) a net amount of interest that reflects the offset of the amount of interest paid to you by the amount of premium amortization allocable to the payment(s), or (2) a gross amount for both the interest paid to you and the premium amortization allocable to the payment(s). If you did notify your payer that you did not want to amortize the premium on a taxable covered security, then your payer will only report the gross amount of interest paid to you. For a noncovered security acquired at a premium, your payer is only required to report the gross amount of interest paid to you.

Recipient's taxpayer identification number (TIN)

For your protection, this form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)). However, the issuer has reported your complete TIN to the IRS.

FATCA filing requirement

If the FATCA filing requirement box is checked, the payer is reporting on this Form 1099 to satisfy its chapter 4 account reporting requirement. You may also have a filing requirement. See the Instructions for Form 8938.

Account number

May show an account or other unique number the payer assigned to distinguish your account.

Payer's Routing Transit Number (RTN)

A payer may include the RTN to identify the bank or financial institution where your account is held.

1. Box 1: Shows taxable interest paid to you during the calendar year by the payer. This does not include interest shown in box 3. May also show the total amount of the credits from clean renewable energy bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, and build America bonds that must be included in your interest income. These amounts were treated as paid to you during the calendar year on the credit allowance dates (March 15, June 15, September 15, and December 15). For more information, see Form 8912. See the instructions above for a taxable covered security acquired at a premium.

2. Box 2: Shows interest or principal forfeited because of early withdrawal of time savings. You may deduct this amount to figure your adjusted gross income on your income tax return. See the Instructions for Form 1040 to see where to take the deduction.

3. Box 3: Shows interest on U.S. Savings Bonds, Treasury bills, Treasury bonds,and Treasury notes. This may or may not all be taxable. See Pub. 550. This interest is exempt from state and local income taxes. This interest is not included in box 1. See the instructions above for a taxable covered security acquired at a premium.

4. Box 4: Shows backup withholding. Generally, a payer must backup withhold if you did not furnish your TIN or you did not furnish the correct TIN to the payer. See Form W-9. Include this amount on your income tax return as tax withheld.

5. Box 5: Any amount shown is your share of investment expenses of a single-class REMIC. This amount is included in box 1. Note: This amount is not deductible.

6. Box 6: Shows foreign tax paid. You may be able to claim this tax as a deduction or a credit on your Form 1040 or 1040-SR. See your tax return instructions.

7. Box 7: Shows the country or U.S. territory to which the foreign tax was paid.

8. Box 8: Shows tax-exempt interest paid to you during the calendar year by the payer. See how to report this amount in the Instructions for Form 1040. This amount may be subject to backup withholding. See Box 4 above. See the instructions above for a tax-exempt covered security acquired at a premium.

9. Box 9: Shows tax-exempt interest subject to the alternative minimum tax. This amount is included in box 8. See the Instructions for Form 6251. See the instructions above for a tax-exempt covered security acquired at a premium.

10. Box 10: For a taxable or tax-exempt covered security, if you made an election under section 1278(b) to include market discount in income as it accrues and you notified your payer of the election in writing in accordance with Regulations section 1.6045-1(n)(5), shows the market discount that accrued on the debt instrument during the year while held by you, unless it was reported on Form 1099-OID. For a taxable or tax-exempt covered security acquired on or after January 1, 2015, accrued market discount will be calculated on a constant yield basis unless you notified your payer in writing in accordance with Regulations section 1.6045-1(n)(5) that you did not want to make a constant yield election for market discount under section 1276(b). Report the accrued market discount on your income tax return as directed in the Instructions for Form 1040. Market discount on a tax-exempt security is includible in taxable income as interest income.

11. Box 11: For a taxable covered security (other than a U.S. Treasury obligation), shows the amount of premium amortization allocable to the interest payment(s), unless you notified the payer in writing in accordance with Regulations section 1.6045-1(n)(5) that you did not want to amortize bond premium under section 171. If an amount is reported in this box, see the Instructions for Schedule B (Form 1040) to determine the net amount of interest includible in income on Form 1040 or 1040-SR with respect to the security. If an amount is not reported in this box for a taxable covered security acquired at a premium and the payer is reporting premium amortization, the payer has reported a net amount of interest in box 1. If the amount in box 11 is greater than the amount of interest paid on the covered security, see Regulations section 1.171-2(a)(4).

12. Box 12: For a U.S. Treasury obligation that is a covered security, shows the amount of premium amortization allocable to the interest payment(s), unless you notified the payer in writing in accordance with Regulations section 1.6045-1(n)(5) that you did not want to amortize bond premium under section 171. If an amount is reported in this box, see the Instructions for Schedule B (Form 1040) to determine the net amount of interest includible in income on Form 1040 or 1040-SR with respect to the U.S. Treasury obligation. If an amount is not reported in this box for a U.S. Treasury obligation that is a covered security acquired at a premium and the payer is reporting premium amortization, the payer has reported a net amount of interest in box 3. If the amount in box 12 is greater than the amount of interest paid on the U.S. Treasury obligation, see Regulations section 1.171-2(a)(4).

13. Box 13: For a tax-exempt covered security, shows the amount of premium amortization allocable to the interest payment(s). If an amount is reported in this box, see Pub. 550 to determine the net amount of tax-exempt interest reportable on Form 1040 or 1040-SR. If an amount is not reported in this box for a tax-exempt covered security acquired at a premium, the payer has reported a net amount of interest in box 8 or 9, whichever is applicable. If the amount in box 13 is greater than the amount of interest paid on the tax-exempt covered security, the excess is a nondeductible loss. See Regulations section 1.171-2(a)(4)(il).

14. Box 14: Shows CUSIP number(s) for tax-exempt bond(s) on which tax-exempt interest was paid, or tax credit bond(s) on which taxable interest was paid or tax credit was allowed, to you during the calendar year. If blank, no CUSIP number was issued for the bond(s).

15. Boxes 15-17: State tax withheld reporting boxes. Nominees. If this form includes amounts belonging to another person(s), you are considered a nominee recipient. Complete a Form 1099-INT for each of the other owners showing the income allocable to each. File Copy A of the form with the IRS. Furnish Copy B to each owner. List yourself as the "payer" and the other owner(s) as the "recipient." File Form(s) 1099-INT with Form 1096 with the Internal Revenue Service Center for your area. On Form 1096, list yourself as the "filer." A spouse is not required to file a nominee return to show amounts owned by the other spouse. Future developments. For the latest information about developments related to Form 1099-INT and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1099INT. Free File Program. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options.

6 Transaction Limit on Savings Deposits

Kahului FCU is Supporting the Fed’s Amendment to Delete the 6 Transaction Limit on Savings Deposits

This is just one more way we’re trying to CARE FOR OUR FAMILY by granting more flexibility to access your savings deposits at a time when we know our Members are facing financial hardships due to the coronavirus pandemic.

On Friday, April 24, 2020, the Federal Reserve Board (FRB) announced an Interim Final Rule to amend the reserve requirement of depository institutions to delete the six-per-month limit on transfers and withdrawals made from “savings deposit” accounts.

What does that mean for our members?

• You can now make an unlimited amount of transfers and withdrawals from your regular share account.

• You no longer will need to head into the credit union to transfer funds between accounts or to withdraw from your account.

• You can make transfers yourself via online banking or audio response all on your own time.

Please note that this change may just be temporary, but we have to await clarification from the FRB before we can address that with certainty.

Silicon Valley Bank Collapse

How Does It Affect Your Account Here At Kahului FCU?

The collapse of Silicon Valley Bank last week is the second largest failure of a financial institution in U.S. history. The bank was shut down and put under the control of the FDIC following a 48-hour bank run and capital crisis. On March 12, regulators also shut down Signature Bank.

Credit union deposits are safe!

• As a credit union member at Kahului Federal Credit Union, you are an owner of our not-for-profit financial cooperative. Credit unions’ first priority is your financial success, and we focus on financial security.

• Kahului Federal Credit Union was chartered 68 years ago, and we are committed to serving our community. You can be assured that your money is safe and sound at our credit union. We have an experienced team to serve you and answer any questions or concerns.

• Credit union deposits in federally insured credit unions are safe and secure.

• Federally insured credit unions offer a safe place for credit union members to save money. These deposits are protected by the National Credit Union Share Insurance Fund and insured to at least $250,000 per individual depositor – the same as any other federally insured financial institution.

• Credit union members have never lost a penny of insured savings at a federally insured credit union.

• You can visit MyCreditUnion.gov for more information about the National Credit Union Share Insurance Fund coverage for consumers.

Please visit our website at www.kahuluifcu.com, or call (808) 871-7705 with any questions. Again, your money is safe and secure at our credit union and protected up to $250,000 per individual depositor.

In addition to our credit union-specific resources, you can find more information about the credit union difference on the Credit Union National Association’s Advancing Communities website at advancingcommunity.com.

Updated 03/14/2023