Credit unions and banks often provide many of the same services. They’re both places to deposit, save and borrow money, and they offer several other financial products and services. However, there are some key differences in not only how each is run, but what that ultimately means for the people doing business with them.
According to MyCreditUnion.gov, an educational website developed by the National Credit Union Administration, one of the biggest advantages a credit union provides to its members is helping them save and borrow, often with better rates, and receive other affordable financial services.
Here are some of the ways credit unions are different from other banking institutions.
They’re Member-Owned – Perhaps the biggest difference between a credit union and a bank is that a credit union is owned by its members, and members elect the board of directors. If you belong to a credit union, you have a direct say in who is making the important decisions.
They’re Not-for-Profit – Credit unions are not-for-profit. Rather than one person or a group of people collecting money, members receive the profit in the form of higher savings rates, lower interest rates on loans, less fees, paid dividends and other products and services. Also, because credit unions are not-for-profit organizations, it means they don’t have to pay taxes or worry about investors, so even more savings are extended to members.
They’re a Community – Credit unions have a shared interest in relation to its field of membership. Credit unions may be focused on providing products and services to members of a specific workplace, profession, educational institution or geographic area.
They’re Cooperative – A credit union puts its own money to good use when it comes to helping members. That means when one member makes a deposit, it ultimately helps another member secure a loan for his or her home, vehicle or business. Since there are no outside stockholders or investors, it means your business with FSU Credit Union is helping other FSU Credit Union members and the FSU Community. It’s the philosophy of members helping members.
If you’re interested in opening an account with FSU Credit Union, review our membership eligibility and join today.
*The content provided in this article consists of the opinions and ideas of FSU Credit Union, does not constitute legal or financial advice, and should be used for informational purposes only. Any decisions you make based on the information contained in this article is made in your sole discretion and liability. FSU Credit Union disclaims any damages or liability for decisions you make based on the information provided.