What is a Credit Union?
What is the purpose of a credit union?
Who can join a credit union?
Are savings deposits insured?
Do you offer Business Services?
Who owns a credit union?
A credit union is a cooperative, not-for-profit financial
institution organized to promote thrift and provide
credit to members. It is member-owned and controlled
through a board of directors elected by the membership.
The board serves on a volunteer basis and may hire a
management team to run the credit union. The board also
establishes and revises policy, sets dividend and loan
rates, and directs certain operations. The result: members
are provided with a safe, convenient place to save and
borrow at reasonable rates at an institution which exists
to benefit them, not to make a profit.
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The primary purpose in furthering their goal of service
is to encourage members to save money. Another purpose
is to offer loans to members. In fact, credit unions
have traditionally made loans to people of ordinary
means. Credit unions can charge lower rates for loans
(as well as pay higher dividends on savings) because
they are nonprofit cooperatives. Rather than paying
profits to stockholders, credit unions return earnings
to members in the form of dividends or improved services.
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A credit union exists to serve a specific group of people,
such as a group of employees or the members of a professional
or religious group. This is called a "field of
membership." The field of membership may include
where they live, where they work, or their membership
in a social or economic group.
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Yes. All savings accounts are insured up to $250,000
by the NCUA, the National Credit Union Administration,
an agency of the federal government.
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The first credit union cooperatives started in Germany
over a century ago. Yes even we do offer multiple small business services. Small business services include business checking accounts, business financing and business bankcard processing services. The credit union movement started in this
country in Manchester, New Hampshire. There, the St.
Mary's Cooperative Credit Association, a church-affiliated
credit union, opened its doors in 1909. Today, one in
every three Americans is a credit union member.
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Most financial institutions are owned by stockholders,
who own a part of the institution and intend on making
money from their investment. A credit union doesn't
operate in that manner. Rather, each credit union member
owns one "share" of the organization. The
user of credit union services is also an owner, and
is even entitled to vote on important issues, such as
the election of member representatives to serve on the
board of directors.
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Equal Housing Lender.