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The more you know about credit unions...
The
more you'll want to join!Why join a credit union instead of a bank?
When you become a credit union member,
you're really joining a financial cooperative. Together, you and your fellow
members pool your savings in order to offer
loans,
savings dividends and financial
services to other members. Unlike banks,
where profits are paid to stockholders, your
credit union's "profits" are returned to you
and fellow members in the form of better
rates, lower fees and superior service.
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Credit
Unions |
Banks |
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Not-for-profit cooperatives |
Institutions run for profit |
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Return earnings to members
through lower loan rates, higher
savings rates, free or low-cost
services |
Return profits to a small group
of stockholders at the expense
of their customers |
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Make loans only to members
serves the membership, capital
remains in the community |
Often make loans to outside
borrowers, including foreign
countries and commercial
enterprises |
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Have member/owners each person
who deposits money has a share
of the ownership |
Customers have no right of
ownership |
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Membership elects the Board of
Directors |
Customers have no voting
privileges |
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Have a volunteer Board of
Directors that serves for no
compensation |
Have a paid Board of Directors
that serves for financial gain |
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Serve only those individuals
within their field of membership |
Serve anyone in the general
public |
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Service driven we care about
people |
Credit driven care only about
profits |
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Believe competition benefits all
consumers |
Try to eliminate competition
through legislation and lawsuits |
Credit unions are not-for-profit
financial cooperatives serving members who
share something in common employment,
association membership, or a particular
geographic area. More than 79 million U.S.
consumers are member-owners of, and receive
all or part of their financial services from
over 10,000 credit unions.
Credit unions are democratically owned and
controlled institutions based on "people
helping people" principles. A volunteer
Board of Directors is elected by the
members; each member has an equal vote,
regardless of how much he or she has on
deposit. Credit unions have no outside
stockholders, so after reserves are set
aside, earnings are returned to members in
the form of higher dividends on savings,
lower loan rates and low cost services.
Learn more about Credit Unions:
MCUN Montana Credit Union Network
CUNA Credit Union National Association
NCUA National Credit Union Administration
NCUSIF National Credit Union Share Insurance Fund
NAFCU National Association of Federal
Credit Unions
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