Why join a credit union instead of a bank?140 million satisfied credit union members throughout 90 countries will tell you why:
Not for Profit Democratic Structure – ownership in their financial institution
Quality service to Members
Social Goals – People helping People
When you become a credit union member, you’re really joining a financial cooperative.Together, you and your fellow members pool your savings (called ‘shares’) in order to offer loans, savings, dividends and financial services to other members.Unlike banks, where profits are paid to shareholders, your credit union’s ‘profits’ are returned to you and your fellow members, in the form of a dividend, lower fees and superior service.Banks are in business to make a profit, Credit Unions are in business to maximise service.
Because credit unions are democratic, member owned and controlled cooperatives, members have the power to direct credit union policy.If the majority of members are dissatisfied with the directors who set the policies of the credit union, they have the power to replace them.Credit Union elections are based on a one member, one vote structure and only members can be on the Board of Directors.
Credit Unions
Banks
Not for Profit cooperatives
Institutions run for profit
Return earning to members through dividend, lower fees & superior service
Return profits to shareholders at the expense of their customers
Make loans only to their members, which both serves their membership and ensures that capital remains with the community served
Often make loans to outside borrowers, including foreign countries and commercial enterprises
Have member/owners – each person who deposits money has a share of the ownership
Customers have no right of ownership
Board of Directors is elected by the membership
Customers have no voting privileges
Have a volunteer Board of Directors that serve for no compensation
Have a paid Board of Directors that serves for financial gain
Can serve only those individuals within their field of membership
05 September 2010
