CREDIT UNIONS
Your Guarantee of a Fair Shake


HOW YOUR CREDIT UNION IS DIFFERENT FROM OTHER FINANCIAL
INSTITUTIONS AND WHAT IT MEANS TO YOU.
NOT-FOR-PROFIT:
The Credit Union Difference

To  understand  what makes your credit union different, it helps to know more about just what a bank and a credit union are. While there are exceptions, each institution can be described in a general way. 

A Bank is a financial institution, chartered by the state or federal government, which accepts deposits and makes loans to people and corporations for a profit. 

A Credit Union is a cooperative, not-for-profit financial institution chartered by the state or federal government, which is owned and controlled by its members and organized to promote thrift and provide credit to those who belong A credit union may only serve members who share a common bond such as that of employment, community or organization.

Your credit union may offer many of the same services as other financial institutions. Unlike them, your credit union is not in business to make a profit. It exists to provide you with a safe, convenient place to save and to obtain loans at a reasonable rate. And since it is a cooperative, your credit union is not owned by a company, by an individual, or by some distant corporation with little interest in you beyond how much profit it can make. You own your credit union or at least a share in it so .  

SERVICE TO MEMBERS:
People Helping People

The credit union commitment to service is as old as the credit union movement itself. Ever since the first one was formed in the United States in 1908, credit unions have grown and prospered because of a deep-rooted belief in the idea that peoples dreams can become real when they work together. 

The dedication to this principle is just as strong today as it ever was. But what does that mean to you? 

Simply put, its your assurance of a fair deal. Here are the facts: 

Credit Unions Offer an Attractive Rate on Savings. Dividend-paying share and share draft accounts (similar to checking accounts with interest) provide competitive and often higher rates when compared to other financial institutions.

Credit Unions Have Affordable Loan Rates. While rates may vary from place to place and time to time, credit unions consistently offer affordable rates. Just as important, your credit union can often cut through much of the unnecessary red tape to get you that loan faster. 

Credit Unions Have Fewer Costly Fees. Your credit union isn’t looking to “nickel and dime” you with service charges simply to make a little extra profit. In fact, it is widely known that credit unions, unlike some other financial institutions, usually charge only a nominal fee, or none at all, for many services. 

FULLY INSURED:

Your Safety Net


Credit unions are ideally suited to be your first choice in financial matters. 

If your money  is  entrusted  to  your  credit union, it couldn’t be in a safer place. Like other insured financial institutions, your credit union is covered by an insurance fund established and maintained to protect your money. 

Today’s world offers a sometimes bewildering choice of options when it  comes  to  money matters from where to get the best rate on your savings to how to get the best deal on a loan. Your credit union is there to help sort out some of these options. 

So when it comes time to decide where to save for the future, where to obtain loans for today, or where to turn for you everyday financial needs, think of you credit union first. You own it. You have a share in its future. And its safety is insured.  But above all, your credit union’s personally friendly service and commitment to your goals springs from a fundamental difference among financial institutions.

In a word: not-for-profit. 

And that’s your guarantee of a fair shake.

 

 

A FAIR SHAKE

Do you think your credit union is just the same as a bank or any other financial institution?

The banking industry wants you to think so. In fact, banks have persuaded the courts and some of our nations lawmakers that there's no difference at all! They hear that credit unions provide many of the same services as other financial institutions and come to the mistaken belief that the only difference is in the name.

Nothing could be further from the truth. Your credit union is different, in one important way. When you go to your credit union, rather than the credit union asking "How much profit can we make?," your credit union wants to know, "How can we help?"

 

NAFCU
Presented by the National Association of Federal Credit Unions,
an independent trade association representing federally chartered credit unions nationwide.
Copyright 1997 Financial Education Corporation

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