Grown up on using piggy banks, playing cops and robbers, and being the “banker” in a game of Monopoly? Despite this experience, not many people really understand the function of a credit union. While banks have been the predominant force in financial institutions, credit unions are quickly becoming the norm. Here are a few reasons why.
For starters, a credit union is a not-for-profit organization. That means that any excess earnings (or profits) that occur over time end up right back in the pockets of the credit union’s members. This could be in the form of:
- Lower loan rates
- Higher share deposit rates
- Fewer fees
- Better service
It is extremely beneficial for credit unions to have access to excess earnings, in case there is an economic downturn or periods of slower income growth. Profits like these go straight to giving the credit union the ability to survive and when a credit union survives, its members thrive.
Members Are Owners
It’s easy to understand that banks and most other for-profit organizations are owned by a group of shareholders who make executive decisions for all members. Understanding that members of a credit union are part-owners who have the power to make important decisions as a whole is a little more difficult to grasp. As part-owners, credit union members:
- Can vote and run for the board of directors
- Look out for their own financial interests
- Have exclusive access to specials and rates
Ready To Join Metro North Federal Credit Union?
These are just a few of the many reasons to join a credit union. MNFCU is here to help you organize your life and reach all of your financial goals. Want to know more? To learn more, contact us or visit us in person!