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Why Credit Unions Aren't Banks
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When you walk into our lobby, or call a loan officer, what makes My Credit Union different from a bank isn't immediately apparent. The two financial institutions may offer similar products and services. But the similarities stop there. Crucial differences exist--in ownership, in cost of borrowing money, and in use of services.
* You own your credit union. Credit unions are member-owned nonprofit financial cooperatives dedicated to improving members' lives. More than 90 million members own 7,905 U.S. credit unions with combined assets of $869 billion. Stockholders own banks. Banks make money for stockholders, not for customers.
Credit unions are the only democratically controlled financial institutions in the United States. You and other members elect a volunteer board of directors to oversee the credit union. The manager or president/chief executive officer reports to this board. Bank directors, however, are paid and legally bound to make decisions that benefit stockholders, not customers.
* Credit unions have the best rates. Credit unions price loans, pay interest on funds you've deposited, and charge fees to provide you with high-quality, low-cost services. Banks price products and services to make a profit.
Credit union loan rates also are better. Money market, savings, and interest checking accounts carry higher rates--giving back more to members. Interest rates on credit cards and auto loans average one to one-half percentage points lower than bank rates. Credit unions make consumer loans and some member business loans. Banks offer consumer loans, but really emphasize business loans.
* Credit unions educate members about money matters. They provide publications such as this newsletter to keep you advised of rates, loan sales, and financial trends that affect you.
Because you're an owner of My Credit Union, you have a say in how we do business. Let us know how you think we're doing, and what services you want at your credit union.
Copyright 2009 Credit Union National Association Inc. Information subject to change without notice.
Credit Unions Top Satisfaction Survey
Credit Unions are meant to serve their members, and they are known for achieving high customer satisfaction. So it comes as no surprise that a recent study shows credit unions outperform both large, national banks and community banks in terms of customer satisfaction with online banking..
A 2009 ForeSee Results/Forbes.com study of online banking gave credit unions a customer satisfaction score of 86, higher than both large banks and small, community banks. Why are credit union members so satisfied with their online bankign? They are happier with tasks, transactions, and Web site performance, and they feel more comfortable with the privacy of their online banking.
"When it comes to personal attention, high-quality service, and low fees, credit unions continue to knock the socks off other providers in the financial services marketplace," says CUNA President and CEO Daniel A. Mica. "Credit unions are not-for-profit cooperatives, which means member service is their reason for being."
Copyright 2009 Credit Union National Association, Inc. Information subject to change without notice.
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Why Credit Unions Aren't Banks
Credit Unions Top Satisfaction Survey
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