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YOU want to know more about credit unions…
YOU are the credit union difference!
Credit unions are not-for-profit. We’re for YOU.
What is a credit union?
A credit union is a nonprofit financial institution that is owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church.
What makes a credit union different from a bank?
Like credit unions, these financial institutions accept deposits and make loans, but unlike credit unions they are in business to make a profit. Banks are owned by groups of stockholders whose interests include earning a healthy return on their investment, not YOU.
What are the benefits to becoming a credit union member?
Credit unions generally provide financial benefits to members through lower loan rates, higher saving rates, and fewer fees than banking institutions. Plus by joining a credit union YOU become a member-owner and have a say in how the credit union is run.
Some things YOU should know about credit unions…
•The first U.S. credit union was established on November 24, 1908.
•Credit union policies governing interest rates and other matters are set by a volunteer board of directors elected by and from the membership.
•Credit unions offer many of the same financial services as banks, often using different terminology; including share accounts (savings accounts), share draft (checking) accounts, credit cards, share term certificates (certificates of deposit) and online banking.
•Credit unions typically pay higher dividend (interest) rates on shares (deposits) and charge lower interest on loans than banks.
•At the end of 2006, there were 46,377 credit unions in 97 countries around the world, serving 172 million retail members.
•Credit unions generally follow a principal of “once a member always a member”, which allows current credit union membership to continue even if the individual would no longer qualify to be a member.
•Credit unions’ slogan is “people helping people.”
•Credit unions are often heavily involved in the communities in which they serve. They often donate goods, time and services to their communities.
•Much like the FDIC, the National Credit Union Administration (NCUA) is the United States federal agency that supervises and charters federal credit unions and insures savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.
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