The Credit Union Difference
The more you know about credit unions...
The more you'll want to join!
Why join a credit union instead of a bank? When you become a credit union member, you're really joining a financial cooperative. Together, you and your fellow members pool your savings in order to offer loans, savings dividends and financial services to other members. Unlike banks, where profits are paid to stockholders, your credit union's "profits" are returned to you and fellow members in the form of better rates, lower fees and superior service.
| Credit Unions | Banks |
|---|---|
| Not-for-profit cooperatives | Institutions run for profit |
| Return earnings to members through lower loan rates, higher savings rates, free or low-cost services | Return profits to a small group of stockholders at the expense of their customers |
| Make loans only to members – serves the membership, capital remains in the community | Often make loans to outside borrowers, including foreign countries and commercial enterprises |
| Have member/owners – each person who deposits money has a share of the ownership | Customers have no right of ownership |
| Membership elects the Board of Directors | Customers have no voting privileges |
| Have a volunteer Board of Directors that serves for no compensation | Have a paid Board of Directors that serves for financial gain |
| Serve only those individuals within their field of membership | Serve anyone in the general public |
| Service driven – we care about people | Credit driven – care only about profits |
| Believe competition benefits all consumers | Try to eliminate competition through legislation and lawsuits |
Credit unions are not-for-profit financial cooperatives serving members who share something in common – employment, association membership, or a particular geographic area. More than 79 million U.S. consumers are member-owners of, and receive all or part of their financial services from over 10,000 credit unions.
Credit unions are democratically owned and controlled institutions based on "people helping people" principles. A volunteer Board of Directors is elected by the members; each member has an equal vote, regardless of how much he or she has on deposit. Credit unions have no outside stockholders, so after reserves are set aside, earnings are returned to members in the form of higher dividends on savings, lower loan rates and low cost services.
