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A credit union is
a member-owned, non-profit cooperative financial institution
owned and operated by its members. These members,
who are united by a common bond of association, democratically
operate the credit union under state and federal regulation.
There are more than 12,300 credit unions in the United
States, serving more than 69 million members. |
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What
are the Benefits of Credit Union Membership? |
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Credit unions exist
solely for the purpose of meeting the financial needs
of their member-owners. To that end, credit union
not only provide outstanding personal service, but
members often earn higher returns on their savings
while paying lower rates for loans. Each year, credit
unions consistently outshine banks and S&Ls in
the area of consumer/member satisfaction.
Credit Unions are based on one-member,
one-vote structure, this giving members the power
to direct credit union policy in an effort to meet
member needs. This structure is vastly different from
the for-profit sector where stockholders vote according
to the number of shares of stock they own. Their non-profit
status enable credit unions to operate at a lower
cost than many for-profit institutions and helps them
to offer competitive loan and savings rates. For instance,
credit unions usually charge lower interest on credit
cards than most other providers, and many credit unions
charge no annual card fee. |
| 3. |
What
Makes Credit Unions Unique? |
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The biggest difference
between credit unions and other financial institutions
is that the members are the owners. Credit unions
exist solely to serve their member-owners, who are
the only depositors. The benefits of ownership are
returned to the member in the form of lower rates,
bigger dividends, and personal service. |
