Why Join the Credit Union? Better Benefits are Hard to Find!
What is a credit union?
A credit union is a not-for-profit,
cooperative financial institution that is owned and
controlled by its members. Credit unions serve people
that share something in common such as an employer
or place of worship. Credit unions allow members to
pool their savings, lend to one another, and have
a voice in the governance in the organization. This
aspect of credit unions is particularly appealing
given the increasing alienation many consumers are
feeling from mega banks.
Credit unions are similar to banks in
that they offer many of the same services such as
check and savings accounts as well as loans. Deposits
are also federally insured with credit unions as they
are with banks. Credit unions combine these services
with many other benefits such as personal service,
generally lower interest rates and higher investment
returns. Steps to take to find a credit union to join.
Contact your employer to see if your
company provides this benefit. If not, ask them to
consider making the valuable benefit of credit union
membership available. If a family or household member
is eligible to join a credit union you may be eligible
to join because of your relationship. Also, try contacting
occupational, fraternal, religious and alumni organizations
you are affiliated with to see if they have a credit
union you can join. CreditUnionRate.com is also a
good source to use when searching for a credit union.
What are benefits of a credit union?
Because credit unions are democratic,
member-owned cooperatives, every member, regardless
of account size, has a voice in governance. Each year,
your local credit union holds an annual election and
meeting where members select candidates for the Board
of Directors from among its members to represent them
in setting the policies of the credit union. As a
member-owner of your credit union, you are entitled
to vote on credit union business and elect new board
members. You can also serve on your credit unions
volunteer board or one of its committees. Credit union
elections are based on a one-member, one-vote structure.
This structure is unlike the for-profit, public companies
where stockholders vote according to the number of
shares of stock they own.
Once you become a member of the credit
union you always remain a member - as long as you
maintain an account. Even after your discharge from
services or relocation you can still be a member of
your credit union. Again, because you are a member-owner
of your not for profit credit union you derive financial
benefits that are reserved for stock holders at for
profit banks. In other words, you get higher interest
rates on basic savings (share) accounts, interest-bearing
checking accounts and CDs. Many credit unions also
pay bonus dividends in especially good years. Credit
unions also offer lower interest rates on credit cards
and loans than banks. This comes as a strong point
in favor of the credit unions. Many young families
who are just starting out have very demanding financial
needs and most often they are required to stretch
their limited dollars. From credit cards to car loans,
credit unions consistently offer lower rates, better
terms and lower fees.
This holds true even for mortgage rates
and equity loans. Credit unions are known to provide
better and competitive mortgage rates and equity loans.
Not only are the rates low, but closing costs generally
are much lower than those paid through a conventional
lender.
Your local credit union helps you make
the most of your money. From personalized service
to low interest and high returns its easy to see why
89 million members depend on a credit union to meet
their banking needs.
Nicole Soltau
President and Founder
http://Cre
ditUnionRate.com
The Leading Online Credit Union Directory
