FAQs

Below are Frequently Asked Questions to assist you.  Still wondering about something?  Please contact us today to begin the conversation. 

How do I access my investment information?
You will receive a quarterly statement that will provide detailed information about your investment(s).  You can also access your investment information by dialing (800) 325-8975 and asking for a loan fund administrator.

What is the minimum investment?
Flexible certificates have no minimum investment.
Term certificates have a minimum investment of $5,000.

What is the difference between a Term Certificate and a Flexible Certificate?
Term certificates have a set term of 1, 2, or 5 years. Due to the time commitment, the interest rates offered on term certificates are generally higher than those offered on flexible certificates.  There is a penalty for early withdrawal on all term certificate investments.
Flexible certificates are not for a set period of time.  Because of this flexibility, the interest rates offered on flexible certificates are generally lower than those offered on term certificates. All certificates compound daily and interest is posted monthly to your certificate. You may invest or redeem your funds at any time without penalty.

What are my options for the interest accrued on my certificate? 
The interest accrued on your certificate may be reinvested into your certificate on a monthly basis, or you may elect to have the interest distributed to you. Depending on your preference, your interest may be distributed to you monthly or quarterly. Additionally, if you have a term certificate and your interest has been reinvested, you may take all the interest from the certificate at any time without incurring any penalty for early withdrawal. 

Can I change my interest selection at any time?
Yes, you can change your interest selection by contacting our office and requesting a Change of Interest Payout Request form.

What is the penalty for early withdrawal?
If you request redemption of your term certificate before its maturity date, a penalty equal to 3 months’ accrued interest for a 1 year term certificate and 6 months’ interest for a 2 or 5 year certificate will be applied.  The penalty may be waived for the death of the investor or the need for the investor to enter a long-term care facility.

Can I add money to a Flexible Certificate before it reaches maturity?
Yes, an investor can add money to the certificate at any time by completing a flexible investment form and sending a check made out to the Free Methodist Loan Fund (FMLF).

Can I add money to a Term Certificate before it reaches maturity?
No, with a term certificate an investor can add money to the certificate at the maturity date only.  However, new investment certificates can be purchased at any time.  To open a new certificate the funds must be accompanied by a new investment application.  This form can be obtained by going to our website (www.fmlf.org) or by calling our office at (800) 325-8975. 

How will I know when my certificate is maturing?
Thirty days before your certificate matures a Rollover Investment Form will be mailed to you for you to return to our office. This form allows you to instruct us on how your funds should be handled upon maturity.

What happens to my certificate if I do not complete the Rollover Investment Form?
If you do not instruct us of your wishes within ten days after your certificate matures, your certificate will be transferred into a temporary Flexible Certificate.  You will be mailed another rollover investment form as a reminder.  If you live in a state that does not allow funds to be held in a Flexible Certificate (CA, LA, SC), your funds will be returned to you.

How do I get money disbursed from my certificate?
We must receive a signed distribution request in order to process any certificate disbursements.  Depending on the amount we may also call you to confirm your request.  These measures are intended to safeguard your holdings. Checks are only made payable to the owners of the certificate at their address of record.  In the case of electronic transfers, the name on the receiving account must be the same as the name on the certificate with the Free Methodist Loan Fund. In order to send money to your bank we will need a bank information form to be completed.  This information will remain on file for any further transfers to your bank.  

How fast can I get my distribution?
The Free Methodist Loan Fund has up to 30 days to process your request, but in most cases requests are processed within 24-48 hours of when they arrive in our office.  The Free Methodist Loan Fund is able to electronically transfer funds directly into the client’s bank account within two business days, which enables clients to receive their funds in a timely manner. 

What is the difference between an ACH and a wire?
An ACH takes overnight to clear whereas a wire is available same day.  An ACH is free.  A wire costs $15 and the fee will be subtracted from your certificate balance at the FMLF.  

How can I make adjustments to my certificates?
Adjustments can be initiated through a phone conversation with a loan fund administer; however, the change will not take effect until the appropriate documents are signed and returned.  For instance if a client wants to change beneficiaries listed on his/her certificate they could call and make the request.  The loan fund administrator would send the appropriate form for the client to authorize with his/her signature.  When the request is returned the change would take place.

How do I designate a beneficiary/beneficiaries for my investment certificate?
For a new investor in the process of completing an investment application, simply complete the section entitled "Beneficiary" on the back of your New Investment Application Form.
For a current investor with an investment application already on file with FMLF, you may call and request the beneficiary change form or you may simply mail a signed request indicating your new beneficiary designations.  

Is my investment insured?
The Free Methodist Investment and Loan Fund is not a bank, and the investments held are not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC) or any other bank or governmental agency.

Where can I find current interest rates for investments in FMLF?
Current interest rates are posted on our website by going to www.fmlf.org.  Interest rate information can also be accessed by calling us at (800) 325-8975.

Who sets the current interest rates?
The Investment and Loan Fund committee at the Free Methodist Foundation reviews rates monthly.  All changes are approved by the Free Methodist Foundation Board of Directors Investment Committee.   

What happens when the rates change?  
In the event of a rate change regarding flexible certificates, you will be mailed a written notice 30 days in advance of the change. If term certificate rates change, any existing certificates will continue at the rate it was assigned when it was opened. The rate change affects new certificates only.  

*See our Offering Circular for a more complete explanation of terms and risks.