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1 for SCE Federal Credit Union News Fall 2018 Dear Members, The holiday season is right around the corner and I thought this would be a good time to offer an important piece of advice: create a budget. No, I m not Scrooge or the Grinch. I want everyone to enjoy the holidays. What I don t want is for anyone to suffer post-holiday blues about their spending. Collectively, Americans will spend more than a trillion dollars during the holidays. Individually, the majority of us will spend $1,000 to $5,000. Nearly 60% of us won t make or stick to a budget, two thirds of us will underestimate what we will spend, and more than half of us will go further into debt. It s estimated it will take from six months to six years to pay off holiday spending. So, that thousand dollars spent could cost considerably more to pay back. To avoid a post-holiday financial hangover, let s start with, you guessed it, a budget. Make a list and check it twice. Write down the family and friends you want to buy a gift for and set a dollar limit for each person. Factor in extra expenses like the additional money you ll need for food, wrapping paper, bows, cards, a tree, lights, ornaments, and so on. If you re traveling, take those additional costs into account. That should give you a rough idea of what you can expect to spend. Here are some ways we can help. In the short term, you can transfer balances from higher interest credit cards to a lower interest option like an SCE Credit Union Visa. That can save you money each month, giving you some added flexibility. The more long-term solution is aimed at next year s holidays. Open a Holiday Club Account. The automatic deposits you ll set up will make saving a lot easier. You ll also earn dividends. Start now and that money becomes available November 1, Perfect timing. It s good to shop early, before Thanksgiving. Prices are often less, although there can be some remarkable sales during Thanksgiving weekend and the following Monday, also known as Cyber Monday. If you see something you want to buy, check to see if you can score a discounted gift card; Raise.com and Costco are good places to look. Many experts recommend taking cash with you and when that runs out, you re done. Regardless of what approach you decide on, be sure to avoid dipping into emergency or retirement savings. I hope all of our members enjoy these last few months of the year and have a beautiful holiday season. Sincerely yours, Dan Rader President/CEO Drive It Out of the Park Finale It was another exciting season with the Las Vegas 51s! Our grand prize winner, D Angelo Bell, may not have driven away in a new car... but he did walk out with $5,100! Congratulations to all our winners!

2 The Swiss Army Knife of Money Management Our personal finance manager is an incredible online money management tool that will provide you with an exceptionally comprehensive understanding of your financial life. This is literally the Swiss Army knife of money management; all of the tools you need to maintain control and attain your goals are packed into this free program. It s securely accessed through our online banking and is available from any device you use: desktop, laptop, tablet or smartphone. So what can it do? Money Management will automatically add in all of your SCE FCU accounts and then let you link external accounts (accounts from other financial institutions), so you get everything in a single view the big picture. You ll be able to review your transaction history, and your transactions will automatically be categorized. Customizable alerts will make you aware of upcoming payments, a low balance, or an unusual transaction. One of the best features of Money Management is a tool that allows your budget to become interactive. You ll be able to create a budget, see how it plays out month to month, and project how your current course will affect long term goals. You ll be able to develop a debt plan and accurately predict when you ll have things paid off. Add to all this the ability to track and manage cash flow, see your net worth, and identify specific trends, and it should be apparent that Money Management is something you should have! Log in to Online Banking to check it out or visit scefcu.org/ ebanking/personal-finance-manager to watch a short video. 8 Tips for Safe Holiday Shopping It s time to prepare for the upcoming holiday shopping season, but you may not be the only one getting ready to take action. The flurry of activity that goes on gives thieves additional opportunities to take advantage of unsuspecting shoppers. Here are a few tips to help keep you protected this season: Only take with you what you need when you go shopping. Do you really need to carry every credit card ever issued to you? Consider an alternative form of payment like Apple Pay, Google Pay, and Samsung Pay, which are available to all SCE FCU members. Never leave your wallet, purse, or purchases unattended or in the car not even in the trunk, if you can avoid it. If you have an SCE FCU Debit Card or SCE FCU Credit Card, be sure to download our fraud fighting apps CardNav for debit and SecurLock for credit. Both apps allow you to turn your cards on and off as needed. You can even control where they can be used. You can download them for free from your app store. As convenient as it might seem, don t log into secure sites when using public WiFi. So as tempting as it might be to take a quick break at that coffee shop and get some online shopping done, don t do it using their WiFi access. Watch out for scams. For example, 99% of free online gift card offers are fake. When you do make online purchases make sure you re visiting a reputable site. Save your receipts and match them up with your banking statement. If you notice anything unusual, it may be fraud and you ll want to report it.

3 Taking a New Look at Certificates Banks call them Certificates of Deposit; we call them Certificates or Share Certificates. Historically, they ve been a sound, reliable investment, providing a nice balance to the roller coaster ride the stock market can sometimes take you on. Now that interest rates are on the rise again, certificates are becoming even more attractive. And we ve got something we hope will catch your eye For a limited time, we re offering a special on a 15-month certificate, with a promotional rate of 2.25% APY! Better yet, the minimum deposit to open one is only $1,000. Be sure to get yours before the special ends. When s that? Not sure, so don t wait! Visit a local branch, give us a call, or open your promo certificate online at scefcu.org/getmycert! Give Us a Like! There s only one place to get daily info on what s happening at SCE FCU, financial tips, and local events SCE FCU social media! We highlight everything from industry news to festivals perfect for the whole family. Recently, a few lucky followers each won a BarkBox for their pup for #DogDayAtSCEFCU. Don t miss your next chance to be informed and win fun prizes from our social media team. Follow along on our Facebook, Twitter and Instagram today! APY = Annual Percentage Yield, as of , limited time only, subject to change without notice. Minimum deposit is $1,000. Unless otherwise directed at maturity, the 15-Month Certificate will renew for a 12-month term at the rates in effect at that time. A penalty may be imposed for early withdrawals. Ask us for additional terms and conditions. Savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government; NCUA; National Credit Union Administration, a U.S. Government Agency.

4 New Ways to Own with Little or Nothing Down SCE FCU is always looking for ways to bring the American dream of home ownership to our members. Through our credit union owned mortgage company, Community Mortgage Funding, LLC, we have four new California Housing Finance agency (CalHFA) programs to help do just that for our members looking to purchase in California. These are all programs that address one of the key issues for first time buyers: putting together a down payment and one of these options might be perfect for you! CalHFA FHA & CalHFA Conventional One is an FHA-insured 30-year fixed first mortgage, the other a 30-year fixed first mortgage insured through private mortgage insurance. Both allow for little down. CalPLUS with ZIP This is a conventional or FHA backed first mortgage combined with the CalFHA Zero Interest Program, for closing cost assistance. MyHome Assistance Program This loan can be used by first-time home buyers assistance with the down payment or closing costs. The loan can be up to 3.5% of the purchase price and payments are deferred. School Teacher & Employee Assistance Program STEAP is for current employees of any K-12 public school, including charter, district offices and county/continuation schools throughout the state. It also provides up to 4% for down payments or closing costs and, like MyHome, is limited to first-time buyers. Whether or not you re able to take advantage of one of these programs, give us a call and let us help you into your next home! In the Community... Up For A Challenge? Save the date! Giving Tuesday, November 27th, is a global day of giving. It comes soon after Thanksgiving, the day many of us celebrate the things we re thankful for. Is there a better way to show your appreciation than by giving back during this charitable season? The Center for Financial Empowerment is the nonprofit the Credit Union founded in 2005 that works directly with teens in underserved communities in the Greater Los Angeles and Southern Nevada areas. Your donation on Giving Tuesday would help the CFE raise the level of financial literacy among teenagers with the kind of instruction often overlooked at school. Your tax-deductible gift will empower teens with the tools they need to create a more stable and secure financial future. Even as little as a $10 donation can help break the cycle of generational poverty and lift up our local communities. Watch your for info on how you can help! Mad City Money If a monetary donation isn t feasible, there are other ways you can help. The CFE is always looking for volunteers to help at Mad City Money events. Volunteers play the role of merchants and work directly with the students by helping them learn how to write checks, balance a budget, make car payments, and other real world situations they soon will face, if they haven t already. If you d like to get involved call x2404 or go to center4fe.org/mad-city-money. The next Mad City Money event is just around the corner!

5 Member Advantage INSURANCE SERVICES Something for Our Home-Based Business Owners... Slightly more than half of U.S. businesses are home based, and people who run businesses from their own homes often assume their homeowners insurance provides sufficient coverage. 1 This misconception may expose them to a considerable amount of risk. With standard homeowners insurance, the coverage for business equipment such as computers is often limited to $2,500, and business liability is typically excluded altogether, so it s easy to see how the owner of a home-based business could end up underinsured. Fortunately, some options are designed to help protect your venture and your income. If your business activities are somewhat limited, a basic rider or endorsement that expands the policy limits for business property losses can sometimes be added to your existing homeowners policy, which might be adequate for your situation. However, your insurer may require additional liability protection if business-related visitors come to your home. Broader Protection In-home business insurance policies provide comprehensive coverage, tailor-made for businesses that operate out of a residence. They may include the following specific types of coverage: Business property insurance reimburses you (up to the policy limits) for the loss or damage of items such as office furniture, computers, copiers, and other equipment used to conduct business. You should request replacement-cost coverage, because the actual value of equipment lost in a fire or other incident could be significantly lower than what it would cost to replace it. Liability insurance helps protect you from claims resulting from injuries suffered by business-related visitors on your property (up to the policy limits). This includes delivery people and couriers, not just clients. If your business is interrupted because of damage to your home, you may also be reimbursed for lost income and possibly for the expenses required to operate out of a temporary location or to make payroll for a set period of time. You may want to check with the local authorities or an attorney to verify it s legal to run your particular business in your home, because if you re not in compliance with all regulations, your coverage could be voided. Finally, auto insurance policies often exclude accidents or losses that occur while you re conducting business activities. You should also consider business vehicle coverage if you plan to use your automobile for deliveries, client visits, or any other business purpose. This article was provided by our Credit-Union-owned insurance agency, Member Advantage Insurance Services. If you need help with your insurance needs, we encourage you to reach out to them free of charge at x2638 or info@memberadvantageins.com. 1 U.S. Census Bureau, 2016 (most recent data available) This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions Broadridge Investor Communication Solutions, Inc. Member Advantage Insurance Services LLC - License #0I81315, Schabarum Avenue, Irwindale, CA 91706

6 Coming soon! Savings & Loan Rates Checking & Savings All deposit rates quoted below are Annual Percentage Yields as of September 5, 2018 and are subject to change without notice. Contact the Credit Union for additional information on applicable fees and terms, special promotions, and other accounts we offer. Rewards Checking Prime Savings Super Saver 0.30%. Also available: Free Checking (non-dividend) & Teen Checking 0.12% ($5 min. to open) 0.22% ($5 min. to open) Youth Super Saver 0.22% Holiday & Vacation Club Accounts 0.22% ($10 min. to open) Money Market 1 $0 - $24, % $50,000 - $99, % $25,000 - $49, % $100,000 or more 1.00% Kids Savings Club! Special Hours (Credit Union closed) Columbus Day/Indigenous Peoples Day October 8 Veterans Day - November 12 Thanksgiving November 22 & 23 Christmas Eve December 24 (closing at 3pm) Christmas December 25 New Year s Eve December 31 (closing at 3pm) New Year s Day - January 1 Martin Luther King Jr. Day - January 21 You can access your accounts 24/7 online at scefcu.org, through our mobile banking apps, by phone at , with your ATM card, or by calling our FastLine phone teller at CU Stats as of August 31, 2018 Members: 56,947 Assets: $732,760,000 Serving members since 1952 With rates rising, it s a great time to start thinking about home renovation projects for the new year. Stayed tuned for more information Credit Union Federally insured by NCUA. We do business in accordance with the Federal Fair Housing Law & the Federal Credit Opportunity Act. IRAs & Certificates 2 91 days 1.00% 24 months 1.70% 6 months 1.20% 36 months 1.85% 12 months 1.45% 48 months 2.00% 18 months 1.55% 60 months 2.25% Traditional & Roth IRA 2018 annual contribution limits - $5,500 under 50 years of age, $6,500 for 50 and over. IRA Certificate terms start at 12 months Loans All loan rates quoted below are Annual Percentage Rates as of September 5, 2018 and are subject to change without notice. Rate and finance amount is based on member loan qualifications, and vehicle or property value as applicable. New & Used Auto Loans & Street Bikes 3 Classic Auto Loans 3,4 Vehicle Value Loans 3,5 New & Used RV, Travel Trailer, Boat & Off-Road Motorcycle or Vehicle Loans 3 As low as 3.24% % for terms from 1-8 years Estimated Monthly Payment per $1,000 = $ $22.15 As low as 3.74% % for terms from 1-7 years Estimated Monthly Payment per $1,000 = $ $17.78 As low as 4.24% % for terms from 1-6 years Estimated Monthly Payment per $1,000 = $ $23.28 As low as 5.24% % for terms from 3-15 years Estimated Monthly Payment per $1,000 = $ $12.33 Lines of Credit 3 Adjustable rates from 12.00% % (Daily Periodic Rate % %) Signature Loan 3 Visa Platinum 6 Visa Platinum Rewards 6 As low as 8.25% % for terms from 1-5 years Estimated Monthly Payment per $1,000 = $ $25.41 Home Equity Loans 3,7 Fixed rates from 5.50% % Home Equity Lines of Credit 7,8 Adjustable rates as low as 5.00% First Trust Deed Loans % % variable. This APR will vary based on the Prime Rate. No annual fee 12.50% % variable. This APR will vary based on the Prime Rate. No annual fee. Includes points program toward travel and gifts Buy or refinance your home with a variety of fixed or variable rate options. Business Solutions We offer a full suite of business products and services including several checking options, money market, certificates, loans, lines of credit and Visa cards, and merchant services. We re an approved SBA Lender. Dividends are calculated on the Daily Balance Method for all accounts. 1 Rate will change if you move in or out of a deposit tier. 2 $1,000 minimum balance to open. Penalty for early withdrawal may be imposed. Dividends compound monthly for all terms except the 91-day term, which compounds at maturity. The Annual Percentage Yield is based on the assumption that the minimum balance requirements will be met. 3 All loan rates quoted are annual percentage rates and reflect a discount for electronic repayment. DMV processing fee, if applicable, is $35. 4 Appraisal required on Classic Autos. 5 Inspection required on Vehicle Value Loans. 6 We add between 6.75% to 14.75% to the Prime Rate to determine the Visa APR, and electronic repayment discounts do not apply. Cash advance, balance transfer and letter check fee is 3% (min $10, no max); late payment fee is $25 if paid after due date. 7 Sample payment on a $50,000 fixed rate Home Equity Loan for 20 years at 6.50% APR would be $373 per month. Rate and terms are subject to change without notice. Property must be in California or Nevada. Borrower of non-owner occupied property loans pays all fees. Standard processing fees can range from $500-$2,000 based on transaction type and amount. Subordination fee is $200. Demand fee is $30. Demand update fee is $15. 8 Prime Rate of 5.00% as of plus a margin that ranges from 0%-5%. Prime Rate plus applicable margin and loan to value equals the rate. Floor rates range from 4%-8%. Lifetime cap is 6% above the fully indexed rate. Rate changes occur semi-annually with an annual cap of 2%. Minimum payment on Home Equity Line of Credit is 1% of the balance on loans at 11% APR or less, 1.25% of balance on loans between 11%-15% APR, or 1.5% of balance on loans above 15% APR. Maximum rate is 18% APR. Annual fee of $50 will apply after the first year if balance is less than $10,000 as of June 30 each year of the draw period. 9 Electronic repayment discounts do not apply. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account will be reflected in your credit report. In the event of a disaster, if you re unable to reach us by phone, visit our website at scefcu.org for information on how to access your accounts. Rest assured, we have plans in place to allow us to continue to serve you.