The philosophy of
"people helping people" sets
credit unions apart from other for-profit financial institutions.
Credit unions are dynamic full-service financial institutions with
sophisticated delivery systems - convenient branches, no-surcharge
ATMs, call centers and electronic delivery such as Home Banking. They
easily compare to banks in the types of products and services they
offer, but differ drastically in how they deliver these products and
services. Credit union members receive the outstanding value and service
they deserve.
While credit unions and banks offer similar products and
services such as checking accounts, credit cards, and mortgage loans,
there are still many differences among the two types of financial
institutions:
| Not-for-profit,
member-owned financial cooperative. Makes decisions based on what is best for members. Each member is an equal owner of the credit union. |
|
For-profit
institution. Generates profits for a few stockholders. Makes decisions based on what will give stockholders more profit. If a customer doesn't
own bank stock, he or she is not an owner. |
| Excess earnings
after reserve requirements are met are applied to lower interest
on loans, higher interest on savings or development of new products
and services that members have requested. |
|
Profits are paid to stockholders.
|
| Self-governed.
Each member has one vote in the election of the board of directors,
regardless of how much money they have deposited in the credit
union. |
|
Only
stockholders vote for the board of directors, based upon the amount
of stock owned.
|
| Volunteer
board of directors who are members of the credit union and users
of the credit union services. |
|
Board of directors are
paid. They may not be from the community and they may not even
use the bank’s services. |
|
Deposits are federally insured up to $100,000 by the National
Credit Union Administration, a government agency. The NCUA's
insurance fund is one of the healthiest of all federal deposit
insurance funds. |
|
Deposits
are federally insured up to $100,000 by the FDIC, a government
agency. |
Credit unions are good corporate citizens
Credit unions are located within the communities they
serve and are dedicated to the well-being of their members.
Contrary to what is often said about their tax structure,
credit unions do pay taxes.
