When driving around town, you’ll see many different financial institutions. Did you know there is a difference in how they operate?
Seriously, check out the Credit Union difference below.
Philosophy and Structure
Credit Union – Not for profit, but for service. Which pretty much means they exist to serve the Members, not themselves.
Ownership
Credit Union – Member-owned and controlled, which means you become part owner when you invest your money with them! Plus, each owner has an equal voice, regardless of the account balance.
Control
Credit Union – Most credit unions have volunteer directors who are unpaid and elected by the Membership. For example, Knoxville TVA Employees Credit Union has volunteer directors who are unpaid and are elected from and by the Membership. Each Member must deposit $5.00 into a share savings account and is granted one vote regardless of deposit balance. Once again… the Members are the important ones.
Earnings
Credit Union – Profits are returned to Members in the form of products, services, lower fees, and expanded locations. So, in a nutshell, Members get more benefits.
Products and Services
Most financial institutions offer many of the same banking services BUT…
Credit Union – Keeps rates and fees low for the Membership.
So on a final note, the biggest takeaway is: to a credit union, you are a Member… and you are family!