About Credit Unions

Credit unions are financial institutions owned and controlled by the members that belong to them. Like banks, credit unions can offer a variety of services to their members such as, share drafts (like checking accounts), savings, various types of loans, mortgages, home equity, and credit and ATM cards. Unlike banks, credit unions are not-for-profit and all of their income is generated back to its' members. Members pool their funds to make loans to one-another and to fund the additional services provided by the credit union. A board of volunteers runs each credit union, and is elected by the members. The idea is one member, one vote. Each member has the power to help decide the future of their individual credit union.

Many people might be concerned that they are putting their money into a "member-owned" financial institution, instead of a corporate owned bank. But credit unions are very stable. Credit unions are closely regulated by the federal government, like banks, to ensure the safety of deposits. The National Credit Union Share Insurance Fund (NCUSIF), which is administered by an agency of the federal government, insures deposits of credit union members. Credit unions can be either state or federal charters, and the NCUSIF covers both.

Credit unions are member-owned and operated, and as such, can provide very personal care in their services. Surveys repeatedly show that members of credit unions are more satisfied with the service they receive from their credit union than bank or savings and loan customers. Many members note that the competitive rates on loans and savings, as well as lower interest on credit cards and no annual card fees, are major benefits to belonging to their credit union.

The national motto for credit unions is "Where people are worth more than money." This motto truly gets to the heart of what credit unions are about and how they are run. Across the country, credit unions are making a difference in the lives of their members.