Unlike a financial institution that is looking to make a profit and income off its customers, the credit union is very different. This group is owned by its members and together, they take a democratic approach to how the institution is run. As a partial owner, you do have more say and you can have some peace of mind in always knowing how your funds are being handled. You won’t find that when you deal with a large national financial institution and with their intent to make money, you become just another account to them.
As part of the credit union structure, there is a board of directors in place who will govern the credit union. These individuals are elected by the members of the financial institute and their voting will help to directly impact all of the members and the direction that the credit union takes. Annually, an election takes place to ensure that the members of the credit union are in agreement on who is in charge and to ensure that things are handled accordingly. At other places, the approach is different as the stockholders are their main focus rather than the customers themselves.
Since the credit union isn’t focused on making a profit, they can offer the same types of services and features at a lower cost. The not for profit approach allows them to ensure that their members are their main priority and that any earnings that do take place during the year are evenly distributed among their members. This is paid in high savings interest and a decrease in loan rates. That means that members continue to benefit from the features of the credit union at all times.
Another thing you will notice about a credit union over other places is that they are more committed to the local community they serve. They will be more focused on returning profits to the area and helping to provide local youth with a better financial education, which will prove to help them in the long run. As you can see, they are the smarter choice for all those involved.
With credit unions becoming more accessible to a growing number of people, now is the perfect time for you to enroll in your local credit union. All it takes is the opening deposit and ensuring that you meet the minimum requirements that are in place for the credit union itself.