Can a credit union meet your needs?
Well, yes they can. Many people are confused at the difference between credit unions and banks. Below is a helpful review of what makes credit unions different:
|Returns profits to members in the form of lower loan rates, higher savings rates, and free or low-cost services||Returns profits to stockholders|
|Each person who deposits money is a member with a share of ownership||Customers have no ownership in the corporation|
|Members elect a volunteer Board of Directors to represent their interests||Controlled by stockholders and paid officials|
|Are federally insured by the National Credit Union Administration or a private insurer||Are federally insured by the Federal Deposit Insurance Corporation|
|Can serve only those individuals within their field of membership||Can serve anyone in the general public|
Credit unions have a philosophy of People Helping People, one that we take to heart. Credit unions focus on providing the best service for our members and not stockholders (because we don't have them!). Everyone benefits from credit unions.
Credit unions help consumers. Without competition from credit unions, banks and other financial institutions could charge higher fees, pay lower interest on savings and increase loan rates. By providing healthy competition in the marketplace, credit unions encourage other financial institutions to work harder to keep their customers satisfied. All consumers benefit from credit unions. Studies show that bank customers nationwide also benefit by about $4.3 billion annually by having credit unions in the marketplace. Credit union competition forces banks to keep their rates competitive. (CUNA Research and Statistics)
Credit unions help their members. Credit union members nationwide save $6.3 billion a year by using a credit union instead of a bank. This works out to be about $150 per household for credit union members. Credit unions can provide these savings because as not-for-profit institutions, they return earnings back to their members in the form of better rates and lower fees. This is money that stays in the local community.
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www.creditunionswork.org reference sited 2/1/2012