Credit unions are not-for-profit financial institutions created to serve their Members financial needs. They are owned by their Members and democratically governed by a board of directors. Their mission to serve consumers and not-for-profit, cooperative structure earns credit unions a federal tax exemption. As a result, Members see earnings as higher savings returns, lower loan rates and lower, fewer fees. Credit unions serve a common membership field based on characteristics such as a geographical area, employee groups, or membership in an organization. Becoming a credit union Member is simple and easy.
Credit Unions |
Banks |
---|---|
Not for profit. | For-profit corporations that offer a full range of financial products and services. |
Credit unions are democratically governed, and elections are based on a one-member, one-vote philosophy. | Banks are governed by paid shareholders. Voting rights depend on the number of shares owned. |
Credit unions have members, not shareholders. | Banks have customers and shareholders. They must make money from their customers to please shareholders. |
Earnings are returned to members through services like free ATMs, better rates and lower fees. | Earnings go to outside stockholders in the form of dividends. |
Credit unions are local, community-based financial institutions. Members support their local communities when they bank at a credit union. | Banks are big! The average size of a bank is double that of a credit union. |
More than 30,000 surcharge-free ATMs. | Banks require customers to use their branded ATMs and branches for services or pay fees. Some services are unavailable outside the bank. |
Deposits insured by NCUA up to $250,000. | Deposits insured by FDIC up to $250,000. |
View this information and more at aSmarterChoice.org.
Speaking up in the political process is a big part of credit union history. There are various ways you can ask your elected officials to support credit unions nationwide, and your voice is important!