| What is a credit union?A credit union is a | | | | elect new board members. You can also serve |
| not-for-profit, cooperative financial | | | | on your credit union's volunteer board or one |
| institution that is owned and controlled by | | | | of its committees. Credit union elections are |
| its members. Credit unions serve people that | | | | based on a one-member, one-vote structure. |
| share something in common such as an employer | | | | This structure is unlike the for-profit, |
| or place of worship. Credit unions allow | | | | public companies where stockholders vote |
| members to pool their savings, lend to one | | | | according to the number of shares of stock |
| another, and have a voice in the governance | | | | they own.Once you become a member of the |
| in the organization. This aspect of credit | | | | credit union you always remain a member - as |
| unions is particularly appealing given the | | | | long as you maintain an account. Even after |
| increasing alienation many consumers are | | | | your discharge from services or relocation |
| feeling from mega banks.Credit unions are | | | | you can still be a member of your credit |
| similar to banks in that they offer many of | | | | union. |
| the same services such as check and savings | | | | |
| accounts as well as loans. Deposits are also | | | | Again, because you are a member-owner of |
| federally insured with credit unions as they | | | | your not for profit credit union you derive |
| are with banks. Credit unions combine these | | | | financial benefits that are reserved for |
| services with many other benefits such as | | | | stock holders at for profit banks. In other |
| personal service, generally lower interest | | | | words, you get higher interest rates on basic |
| rates and higher investment returns. | | | | savings (share) accounts, interest-bearing |
| | | | checking accounts and CDs. Many credit unions |
| Steps to take to find a credit union to | | | | also pay "bonus" dividends in especially good |
| join.Contact your employer to see if your | | | | years. |
| company provides this benefit. If not, ask | | | | |
| them to consider making the valuable benefit | | | | Credit unions also offer lower interest |
| of credit union membership available. If a | | | | rates on credit cards and loans than banks. |
| family or household member is eligible to | | | | This comes as a strong point in favor of the |
| join a credit union you may be eligible to | | | | credit unions. Many young families who are |
| join because of your relationship. Also, try | | | | just starting out have very demanding |
| contacting occupational, fraternal, religious | | | | financial needs and most often they are |
| and alumni organizations you are affiliated | | | | required to stretch their limited dollars. |
| with to see if they have a credit union you | | | | From credit cards to car loans, credit unions |
| can join. is also a good source to use when | | | | consistently offer lower rates, better terms |
| searching for a credit union.What are | | | | and lower fees.This holds true even for |
| benefits of a credit union?Because credit | | | | mortgage rates and equity loans. Credit |
| unions are democratic, member-owned | | | | unions are known to provide better and |
| cooperatives, every member, regardless of | | | | competitive mortgage rates and equity loans. |
| account size, has a voice in governance. Each | | | | Not only are the rates low, but closing costs |
| year, your local credit union holds an annual | | | | generally are much lower than those paid |
| election and meeting where members select | | | | through a conventional lender.Your local |
| candidates for the Board of Directors from | | | | credit union helps you make the most of your |
| among its members to represent them in | | | | money. From personalized service to low |
| setting the policies of the credit union. As | | | | interest and high returns its easy to see why |
| a member-owner of your credit union, you are | | | | 89 million members depend on a credit union |
| entitled to vote on credit union business and | | | | to meet their banking needs. |