|Credit unions ARE Different
When you walk into the lobby, or call a loan office, what makes a
credit union different from a bank or savings and loan isn't immediately
The two financial institutions may offer similar products and
services. But there the similarities stop. Crucial
differences exist-in ownership, in cost of borrowing money, in use of
services, and in customer satisfaction.
Credit unions have the best rates
Credit unions price loans, pay interest on funds you've deposited, and
charge fees to provide you with high-quality, low-cost services.
Banks price products and services to make a profit.
You earn more on your savings-in some cases up to one percentage
point-at the credit union.
Credit union loan rates also are better. The average credit
card interest rate is three and one-half percentage points lower at
credit unions vs. banks. And credit union auto loans average at
least on percentage point less that banks' auto loan rates. Credit
unions make consumer loans. Banks offer consumer loans, but really
emphasize business loans
Credit unions are #1 in satisfaction
In the U.S., credit unions have been the
favorite among consumers surveyed in the American Banker
satisfaction survey every year the independent publication has done the
Just recently, credit unions took over the top ranking in
Your funds at a credit union are federally insured up to $250,000
and backed by the full faith and credit of the US Government.
||You're a part-owner
at your credit union
Credit unions are member-owned not-for-profit financial cooperatives dedicated
to improving members' lives. Nearly 80 million members own 10,500
U.S. credit unions. Money the credit union makes is returned to
members in the form of better rates and services. Stockholders own
banks. Banks make money for stockholders, not for
Credit unions are the only democratically controlled financial institutions
in the United States. You and other members elect a volunteer
board of directors to oversee the credit union. The manager or
president/chief executive officer reports to this board. Bank
directors, however, are paid and legally bound to make decisions that
benefit stockholder, not customers.
Credit unions educate members about money matters
Credit unions routinely inform and counsel members about financial
matters. We keep you advised of rates, loan sales, and financial
trends that affect you. Credit unions stress financial education,
providing materials and holding seminars on financial planning, car, and
home buying to help you make informed buying decisions. Many banks
simply advertise their rates and sell their services.