WHAT IS A CREDIT UNION
There are a lot of similarities between credit unions and banks. We offer most of the same products and services, including online account access, bill payment services, and text banking. Your deposits are federally insured up to $250,000 by the NCUA, similar to the FDIC for banks. Despite these commonalities, there are indeed some very meaningful differences.
What is the credit union difference?
- Not-for-profit - We exist to serve our members, not to make profit. Unlike most other financial institutions, we do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.
- Taxation - Credit unions are exempt from Federal income and most State taxes but still pay other taxes just like any other financial services company.
- Ownership - At a credit union, you are both a member and an owner. Each credit union member has one vote -- regardless of how much money a member has on deposit.
- Volunteer Boards - We are governed by a board of directors who are elected by and from the membership and serve without being compensated.
- Membership Eligibility - Credit unions cannot serve the general public. People qualify for a credit union membership through a common bond, such as an employer or community-based.
- Financial Education for Members - Credit unions assist members to become better- educated consumers of financial services.
- Social Purpose - Credit unions exist to help people, not make a profit. This philosophy drives us to be involved in our community and worthwhile causes.