Credit Union Philosophy

Initially, it may be difficult to see the difference in the types of services offered by credit unions or banks and savings and loans. However, once you have spent time in a credit union, you will recognize that there is a world of difference in the attitude and the quality of service which credit unions provide to their members.

The credit union motto is: "Not for profit, not for charity, but for service."

Credit unions are not-for-profit financial cooperatives. They give consumers the choice of ownership, because they are owned by the very people they serve. Credit unions exist solely to serve their members, not to enrich an outside group of stockholders.

Credit unions are run by a board of directors, who are volunteers elected by their peers. The board of directors establishes the polices of the credit union. In addition to being an owner, each member, regardless of how much he or she has on deposit, has an equal vote in director elections. Credit unions are democracy in action.

Credit unions are placed in a not-for-profit category because operating income is returned to depositors in the form of higher savings rates and lower loan rates and fees. Credit unions serve as a healthy check on the for-profit banking system. Competitive pricing by credit unions keeps pressure on the banks to increase the rates they pay on savings accounts and lower their fees and rates on loans - all to the benefit of consumers.