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A credit union is a full service financial institution. Credit unions offer a full range of financial services including loans, savings, investments, credit cards and mortgages.
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Credit Unions |
Other Financial Institutions |
| Where does their profit go? |
Credit unions are non-profit and exist to help people, not to make a profit. As such, all earnings are returned to their members in the form of high-interest savings and low rate loans |
For profit businesses, all earnings are returned to their stockholders |
| Who is in charge of managing my money? |
A volunteer board of directors, elected by the members, governs a credit union. With their vote, each member has a direct impact on the direction of the credit union |
An elected board of directors who are paid are legally required to make decisions that are best for the stockholders, not their customers. Customers have no say (vote) in the running of their financial institution |
| Who does the financial institution focus on? |
"People helping people" is the credit union philosophy. A credit union's goal is to serve all of their members equally and provide charitable contributions to their community. |
Other financial institutions focus on making a profit to benefit their stockholders. |
| Who owns the financial institution? |
Credit unions are owned by their members. Each member gets one vote and an equal say in how the credit union is run. |
Owned by stockholders who expect a return on investment and may not even use the financial institution |
Is my money safe at a credit union?
Yes. Federal credit unions are chartered and supervised by the National Credit Union Administration (NCUA). Through this federal agency, savings in federal and most state-chartered credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the United States government.
Next: Why Join a Credit Union ⇒
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