What is a Credit Union?
How is a credit union different than a bank? Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services. But as member-owned and cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates with many low or no fee services.
How is being a member different from being a customer?
You are more than a customer, you are a part owner. Credit unions are owned and controlled by the people, or members, who use their services. Members of a credit union share a common bond, also known as the credit union’s “field of membership”. You may be able to join based on your employer or family. Your vote counts. A volunteer board of directors is elected by members to manage a credit union.
What does a not-for- profit co-operative financial institution mean to the members?
Credit unions operate to promote the well-being of their members. Profits made by the credit unions are returned to the members in the form of reduced fees, higher savings rates, and lower loan rates. The cooperative structure of credit unions creates a cycle of mutual assistance toward the common goal of the financial well-being of members. One member’s savings becomes another member’s loan. All officials volunteer their time, knowledge, and experience to help direct the credit union to the member’s benefit.