As soon as you join a credit union, you become more than just a customer – you become part of its ownership! Vote on specific policies which benefit all Members rather than external stakeholders such as shareholders – giving it an edge that few other institutions can match.
Credit unions are non-profit financial institutions established to promote thrift and provide credit to their members. Credit unions are member-owned and controlled through an elected board of directors from its membership who in turn hire an administrative team to run it. The board sets policy, dividend rates and directs certain operations of the credit union.
To join a credit union, it’s necessary to meet eligibility requirements set by each organization. These may depend on where you reside or work, where you went to school, current employer and family relationships as well as religious affiliation – although you could also qualify through employment, non-profit groups or connections that share an affinity.
As part of your commitment to joining a credit union, in addition to fulfilling eligibility criteria and supporting its mission and values. Most credit unions are non-for-profit organizations, returning any net income back to members through lower fees, higher deposit interest rates, or reduced loan rates – reflecting its true meaning as members own institution that exists solely to serve its membership’s needs, rather than shareholders’ demands.
Success for all can also translate to the relationships you establish with a credit union, with helpful financial coaching and sincere advice being hallmarks of success compared to what may be found at larger, for-profit banks.
One of the more frequently misperceived myths about credit unions is that they’re unregulated compared to banks, which are protected by federally insured institutions like National Credit Union Share Insurance Fund if an institution fails. Federally chartered credit unions are actually subject to regulation by National Credit Union Administration – an agency of U.S. Department of the Treasury regulating all of them.
With their stringent regulations and up to $250,000 insurance per ownership category deposit insurance coverage, credit unions offer greater peace of mind than other financial institutions. Plus, being non-profit ensures your money won’t disappear if there is ever an issue – so don’t let fear stop you from becoming a Member and experiencing its many advantages!
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