What is a credit union?

Credit unions are not-for-profit financial cooperatives 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 for a three year term. They establish and revise policies, set dividend and loan rates and are responsible for the general direction and control of the credit union. Through their efforts, members are provided with a safe, convenient place to save and borrow at reasonable rates which exists to benefit them. Credit unions serve groups that share a common bond, such as where they work, live, or pray.

What is the purpose of a credit union?

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.

Why join a credit union?

Founded on the basic democratic premise of the cooperative movement, credit unions believe that access to low-cost financial services is critical to the health and stability of ordinary citizens. In fact, more than 67 million Americans trust their credit union will provide the services to improve their financial well being. Services offered range from simple savings to home equity loans to IRAs. Study after study has revealed that on average, credit unions provide the best financial offerings with fewer fees, lower rates on loans and higher rates on savings. And credit unions continually score higher than all other financial institutions in consumer satisfaction surveys. Credit unions strive to deliver the best service possible to their most important asset - their members.

What are the benefits of credit union membership?

There are many benefits to membership, such as:

• Credit union membership is a privilege extended only to those people who share a common bond within our filed of membership - your fellow employees and their family members.
• Credit unions offer nearly all the same services as other financial institutions and at rates that are usually more attractive than others will charge because we are a non-profit organization.
• Credit unions are formed for your benefit - to help you meet your financial needs. The credit union returns all of its earnings, over necessary reserves, to its members in the form of dividends and low interest rates on loans.
• Credit unions membership conveys equal voting rights to all its members, giving you an active voice in deciding on how the credit union will operate.
• Credit unions provide a level of personal service that is uncommon at most other financial institutions.
• Credit unions promote and support the philosophy of "people helping people"