Frequently Asked Questions
What is a Credit Union and How Does it Differ From a Bank?
Credit unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other.
Credit unions differ from other banks in several ways. They are not-for-profit cooperatives that are owned by the members rather than being owned by outside stockholders. The credit union Board of Directors is comprised solely of credit union member-owners rather than by a paid board.
Credit unions charge lower rates of interest on loans and usually do not charge fees for the same products and services that banks provide. Since credit unions are essentially a co-op, we return our profits back to our members in the form of higher dividend rates on savings accounts and investments and lower interest rates on loans.
How Are Credit Union Regulated and Where Can I Obtain More Information?
The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions. They also insure savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government. You can find more information at NCUA.gov.
How Does One Assess the Financial Fitness of Their Credit Union or How Do I Know if My Credit Union is Safe and Healthy?
How Can I Learn How to Better Manage My Money and Lower My Debt? Can the Credit Union Help Me Manage My Money Better? Can the Credit Union Help Me Create a Budget? MoneyDesktop
Why Would I Want a Loan From a Credit Union Instead of a Bank or Auto Dealership?
How Do Interest Rates Compare Between a Bank and a Credit Union?
