What is the Credit Union Difference?
Member-Owned Cooperative: Credit unions are unique in that they are owned and operated by their members. Each member has an equal vote in important decisions, including electing the board of directors who oversee the union.
Profit Sharing with Members: Unlike profit-driven institutions, credit unions return surplus income to their members. This is often reflected in lower fees, higher interest rates on deposits, and lower interest rates on loans.
Membership Criteria: Joining a credit union involves meeting certain eligibility criteria, which typically relate to geographic location, employer, or affiliation with a specific group. This helps foster a sense of community and common purpose.
Community Focus: Credit unions are deeply rooted in their communities, providing support to local causes and initiatives. This community-first approach often translates into more personalized customer service and support.
Competitive Rates and Lower Fees: Credit unions are known for offering some of the most competitive rates on financial products. They aim to provide the best possible financial conditions for their members, including lower fees for services compared to other financial institutions.
Democratic Governance: Each member has a voice in how the credit union is run, from voting on governance issues to decisions about the types of services offered. This democratic process ensures that the credit union's actions reflect the best interests of its membership base.
Insurance Protection: Members' deposits are protected up to $250,000 by the National Credit Union Administration (NCUA), a U.S. government agency, ensuring safety and security for individual finances.