How are banks and credit unions different?
- At credit unions, depositors are called members. Each member is an owner of the credit union and has a say in how the credit union’s funds are invested.
- Since credit union members are owners, each member, regardless of how much money they have on deposit, has one vote in electing board members. Members can also run for election to the board.
- Credit unions are not-for-profit financial cooperatives, whose earnings are paid back to members in the form of higher savings rates and lower loan rates.
- Credit unions cooperate with other credit unions and share resources to bring convenience and savings to its members. CU Service Centers and the CO-OP ATM Network are just two examples of this cooperation between credit unions.
- In the entire history of U.S. credit unions, taxpayer funds have never been used to bail out a credit union.
For more information on why and how to move your money from a bank to a credit union, visit BankTransferDay.org or MoveYourMoneyProject.org.
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Special thanks to my local credit union, PSCU, for providing these facts!
Image Credit: Flickr – fibonacciblue