What's A Credit Union?
A Credit Union is a non-profit cooperative organized by people who have a common bond; "People Helping People." All the members pool their assets, providing funds for loans to those in need within the membership. The members own the Credit Union, electing directors from among the membership. Credit Unions are regulated either by Federal or State law, depending upon the source from which the group receives its charter. The principal function of Credit Unions is to encourage savings and thrift and provide consumers credit at favorable interest rates. Vision Financial Federal Credit Union is federally chartered and regulated by the National Credit Union Administration (NCUA).
What is the difference between a Credit Union and a bank?
- Credit Unions are not-for-profit cooperatives, owned by its members who save and borrow there. They exist solely to serve those members, with no stockholders or bank holding companies to enrich.
- Credit Unions are member owned. In addition to being an owner, each Credit Union member, regardless of how much he or she has on deposit, has an equal vote in elections. Credit Unions are democracy in action.
- Credit Unions are tax-exempt. The benefits of our tax-exempt status as a not-for-profit cooperative are returned to members in the form of higher rates on savings, lower fees and lower loan rates.
- Banks are for-profit institutions run by officers and directors who are legally bound to make decisions, and take a gamble with their customer's money, in the best interest of the stockholders.
- Directors of banks customarily receive director fees, per diem, stock options and other perks. Members of Credit Union boards and committees are truly volunteers -they receive no compensation for their service and commitment. Banks are run by officers and directors chosen by owners, stockholders and bank holding companies, many of which are located out of state.