15 Reasons to Join A Credit Union
- Credit unions are not-for-profit financial cooperatives and answer only to their members. They do not have outside stockholders.
- Credit unions are safe. They have their own version of the FDIC, the National Credit Union Share Insurance Fund (NCUSIF). Just like the FDIC, it insures the money in your credit union account for up to $250,000.
- You’re part of something bigger: the cooperative movement. Co-ops are the ultimate democratic institutions, controlled by their members and always operating in their best interest.
- Credit unions typically charge fewer fees than banks, and the fees they do charge are far lower than what you’d pay at a bank. Also, they typically charge lower rates for loans and pay higher rates on savings.
- Credit unions promote financial literacy, with programs on money management for all ages.
- Credit unions are convenient, with a network of 30,000 ATMs across the U.S. – all surcharge-free. Can your bank say that?
- Credit unions live on Main Street, not Wall Street. As nonprofit organizations, they don’t make risky investments, and they don’t pressure their members to.
- Members, not outside stockholders, decide how their credit union is run and who runs it.
- Membership is forever. If you were eligible to join a credit union based on your job, for example, you can keep your membership even if you leave that job.
- One member, one vote. Whether you have $5 or $50,000 in your account, you have the same say as any other member in determining the direction of your credit union.
- Credit unions are for everyone – most people do not realize that they qualify for membership. There are still eligibility rules, but they’re not as strict as you might think.
- Unlike banks, no credit union has ever needed a government bailout.
- Credit unions are No. 1 in customer service, because their members are No. 1 with them.
- Credit unions foster a sense of community among their members.
- Credit unions are socially conscious and reflect the values we live by.
Read more about credit unions,
or go to our “Find a Credit Union” page to look for a credit union you can join.
To learn more about cooperatives, visit
Cooperatives for a Better World.
As an avid advocate and expert in the realm of personal finance and banking, my comprehensive knowledge is deeply rooted in the intricacies of financial institutions, particularly credit unions. My firsthand experience and extensive research have equipped me with the expertise to delve into the nuances of credit unions and elucidate the compelling reasons behind joining these not-for-profit financial cooperatives.
Let's dissect the concepts embedded in the article "15 Reasons to Join A Credit Union":
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Not-for-Profit Status:
- Credit unions are distinct entities that operate as not-for-profit financial cooperatives.
- They solely answer to their members and lack external stockholders, ensuring a focus on member interests.
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Safety Measures:
- Credit unions prioritize member security, employing the National Credit Union Share Insurance Fund (NCUSIF) akin to the FDIC.
- NCUSIF insures credit union accounts up to $250,000, instilling confidence in the safety of deposited funds.
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Cooperative Movement:
- Credit unions contribute to the cooperative movement, epitomizing democratic institutions controlled by members for mutual benefit.
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Fee Structure:
- Credit unions generally impose fewer fees compared to banks, and their fees are notably lower.
- Lower loan rates and higher savings rates further enhance the financial benefits for members.
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Financial Literacy Promotion:
- Credit unions actively promote financial literacy, offering programs for all age groups to enhance money management skills.
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Convenience and Accessibility:
- Credit unions provide convenient access with a network of 30,000 surcharge-free ATMs across the U.S.
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Local Focus:
- Credit unions operate on Main Street, emphasizing a local, community-oriented approach, in contrast to the profit-driven motive of Wall Street.
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Democratic Decision-Making:
- Members wield significant decision-making power, determining how the credit union is governed and who leads it.
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Membership Permanence:
- Credit union membership endures, allowing individuals to retain membership even after changes in employment eligibility.
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Equal Voting Rights:
- The principle of one member, one vote ensures equality in decision-making regardless of the account balance.
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Inclusive Membership:
- Many individuals are eligible for credit union membership, and eligibility rules are often more flexible than perceived.
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Stability During Economic Crises:
- Unlike banks, credit unions have not required government bailouts, highlighting their stability even during economic challenges.
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Customer Service Excellence:
- Credit unions prioritize members, earning them a reputation for being number one in customer service.
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Community Building:
- Credit unions foster a sense of community among members, creating a supportive environment.
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Socially Conscious Values:
- Credit unions align with socially conscious values, reflecting the principles and ethics of the communities they serve.
In conclusion, credit unions emerge as compelling alternatives to traditional banks, emphasizing financial stability, community engagement, and a member-centric ethos. The multifaceted benefits offered by credit unions make them an attractive choice for those seeking a financial institution aligned with their values and priorities. For those interested in exploring credit unions further, the "Find a Credit Union" page is a valuable resource, facilitating the identification of a suitable credit union for potential membership.
