Not For Profit vs. For Profit - Better Your Experience!
Credit unions are nonprofit institutions that exist to serve their members – not profit from them. All of a credit union’s profits are returned to members in the form of fewer fees, lower rates on loans and higher rates on savings. Only a bank’s stockholders get to share in a bank’s profits – not its customers.
Rather than being a “customer”, you are a member at a credit union. Members own the credit union and therefore get to voice and vote in the direction of the credit union.
Lower Rates on Loans
Because credit unions are nonprofits, they must return profits back to their members. One benefit is that rates on loans for cars, homes or personal purchases are lower.
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Benefits Of Membership (Actually, you get paid) - Better Your Life!
While there is a nominal fee to be a member at a credit union, that small fee actually remains in your account as long as it is opened. This small amount usually less than minimum balances required by banks. And ultimately, the savings on interest and fees and the earnings on accounts actually pay you!
Member Voting (vs. Stockholders)
Because customers actually hold a membership in their credit union, they get to vote on issues effecting the credit union. Only bank customers who are also stockholders get to say that.
Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative. Credit unions place particular importance on educational opportunities for their volunteer directors, and financial education for their members and the public, especially the nation’s youth. Credit unions also recognize the importance of ensuring the general public and policy makers are informed about the nature, structure and benefits of cooperatives.
When credit unions make profit, members see a dividend payment arrive. Yes, not only will you save money on interest and fees, but you’ll actually earn a small profit every time the credit union does.