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Credit unions ensure all members of the public have access to affordable financial services. For years, certain folks were not granted access to affordable, safe financial services. During the early 1900’s that all changed with the development of cooperative, not-for-profit financial institutions called credit unions. Credit Unions are just like banks, except we have a social mission – providing access to affordable financial services to all people.
Credit unions are cooperatives. A cooperative is a group of people who organize together for a common purpose. In this case, a credit union is a cooperative of people providing financial services. In addition, because credit unions are cooperatives, they are democratically run – just like the good ol’ USA – with one member, one vote. So no matter how much (or how little) money a member makes or has placed in a credit union, each member has one vote at all times. Each member shares the advantage of being treated equally, as each member has an equal share of ownership in the credit union. We call it the power of one.
Credit unions are not-for-profit. Although credit unions earn a profit like any other business, the profits are returned to members in the form of lower loan rates and higher deposit rates - unlike a bank where profits go into the pockets of the investors/owners.
Some experts have noted that wherever there is a credit union, loan rates are lower and savings rates are higher. But you might say, “I can get the same rate at a local bank as I can at my local credit union.” A point to ponder might be, “What might your rate have been if it were not for the competition of your local credit union's lower rates in the market place?” Credit unions are best described as the guys in the white hats, working to help individuals and their families achieve their versions of the American dream.
Oh, and by the way, the whole “member” thing is because YOU own us, DuTrac staff work for you…we like to think you are more important than just being another customer at a bank.
