How are credit unions different?
What makes credit unions different from other financial institutions such as banks?
- For People, Not For Profit
Credit unions were set up to serve local communities. Unlike banks, credit unions exist to serve their members, not to make as much profit as possible.
- Ownership
When you join a credit union you are a member not a customer. This means you are a part owner of the credit union. Credit union members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the credit union.
- Volunteerism
People from the local community volunteer to work in the credit union
- Education of Members
Credit unions help to promote the education of their members in the wise use of money. Credit unions help members to become better educated consumers of financial services.
- Return of surplus to members
The surplus arising from the operations of the credit union belongs to and benefits all members. This surplus may be given back to members (in the form of dividends) or used to improve the services of the credit union
- Co-operation
Credit unions work together at local, national and international level to best serve the interests of their community.