Frequently Asked Questions
What is the difference between a bank & a credit union?
The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations.
The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.
In contrast, banks are for-profit financial institutions that are governed by a paid board of directors that generally are the largest depositors and those that own the majority of stock.
Who owns a credit union?
How did credit unions start?
What is the purpose of a credit union?
Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends, low-cost loans and improved services.