Credit Unions offer an alternative to traditional banks. They are formed by a group of people with a common bond; customers may all live in the same community, work in the same industry or company, or belong to the social club. The members of the credit union pool their resources and assets to provide financial services and loans to each other. They are different from banks in that they are Non-Profit Cooperatives that are owned by the members and operated by mostly volunteer boards. Board members are elected to their positions by the members. The members ARE the credit union and since there are also the "stockholders" they are allowed to pay dividends to their members and offer lower loan rates and higher savings rates than most banks. They also usually have lower and fewer service fees.
They are supervised by the National Credit Union Administration (NCUA) which also insures your savings in federal and most state-chartered credit unions through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.
Since Credit Unions exist to serve their members, many have avoided the financial difficulties that the big traditional banks are now experiencing.
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