Why Join The Credit Union? Better Benefits Are Hard To Find!
Nicole Soltau
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 union’s 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.
About The Author: Nicole Soltau is the President and Founder of
http://CreditUnionRate.com -
The Leading Credit Union Directory
Search, Find Join.
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