CREDIT UNIONS VS BANKS
CREDIT UNIONS VS BANKSposted: Friday, September 11, 2009 You may be surprised to find out that there are indeed some very substantial differences between credit unions and banks including the way they operate and who they work for. I'm sure you've noticed a difference in terminology when you visit a SAFE branch or use the call center. We refer to you as a member, not a customer. But what does that really mean? A credit union is a full service, not-for-profit financial cooperative. Core values are simple-service to members through cooperative ownership. Although credit unions offer a full range of financial services including loans, savings, investments, credit cards and mortgages, our not-for-profit cooperative structure makes us unique in the financial world. Banks operate as for-profit businesses, and earnings are returned to their stockholders. Banks use their customers to generate income to keep their stockholders happy. Credit unions exist to help people, not to make a profit. As such, earnings are returned to members in the form of better deposit and loan rates. Members usually save money by using services and products at their credit unions compared to similar offerings at banks. All members are considered equal owners in the credit union. At a credit union, members elect a volunteer board of directors. By voting, members have a direct impact on the direction of the credit union. All members have an equal vote, regardless of the amount of deposits you have or the number of services you use. Bank board directors are paid and are legally required to make
decisions that are best for the stockholders, not their customers.
Customers have no say (vote) in the running of their financial
institution. Stockholders own the bank and may not even use the
financial institution. Banks and credit unions have different regulators and different insurance funds with similar coverage. Banks are regulated by the Federal Deposit Insurance Corporation (FDIC) which insures deposits in banks and thrift institutions for up to $250,000. Credit unions are federally regulated by the National Credit Union Administration (NCUA) and insured for deposits up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF). You can trust your credit union to put its members first, since we are not-for-profit. This is the main reason that most credit unions (including SAFE) have weathered the recent economic turbulence: by following conservative investment practices, by lending responsibly, and by living within their financial means. Thank you for your continuing trust as we work together to provide the best service possible to our members.
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CREDIT UNIONS VS BANKS
CREDIT UNIONS VS BANKSposted: Friday, September 11, 2009 You may be surprised to find out that there are indeed some very substantial differences between credit unions and banks including the way they operate and who they work for. I'm sure you've noticed a difference in terminology when you visit a SAFE branch or use the call center. We refer to you as a member, not a customer. But what does that really mean? A credit union is a full service, not-for-profit financial cooperative. Core values are simple-service to members through cooperative ownership. Although credit unions offer a full range of financial services including loans, savings, investments, credit cards and mortgages, our not-for-profit cooperative structure makes us unique in the financial world. Banks operate as for-profit businesses, and earnings are returned to their stockholders. Banks use their customers to generate income to keep their stockholders happy. Credit unions exist to help people, not to make a profit. As such, earnings are returned to members in the form of better deposit and loan rates. Members usually save money by using services and products at their credit unions compared to similar offerings at banks. All members are considered equal owners in the credit union. At a credit union, members elect a volunteer board of directors. By voting, members have a direct impact on the direction of the credit union. All members have an equal vote, regardless of the amount of deposits you have or the number of services you use. Bank board directors are paid and are legally required to make
decisions that are best for the stockholders, not their customers.
Customers have no say (vote) in the running of their financial
institution. Stockholders own the bank and may not even use the
financial institution. Banks and credit unions have different regulators and different insurance funds with similar coverage. Banks are regulated by the Federal Deposit Insurance Corporation (FDIC) which insures deposits in banks and thrift institutions for up to $250,000. Credit unions are federally regulated by the National Credit Union Administration (NCUA) and insured for deposits up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF). You can trust your credit union to put its members first, since we are not-for-profit. This is the main reason that most credit unions (including SAFE) have weathered the recent economic turbulence: by following conservative investment practices, by lending responsibly, and by living within their financial means. Thank you for your continuing trust as we work together to provide the best service possible to our members.
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