5 Benefits of Credit Union Membership
This article outlines 5 major benefits of credit union membership. It offers a summarized concept of CUs and then outlines the principal advantages that they offer over other financial organizations.
A credit union is a non-profit financial institution. It is a cooperative that is controlled and owned by its members. They provide services to people (or members) by helping them to pool their savings, so they can lend to one another and have their own voice for the governance of the organization. This particular aspect of CUs is significantly appealing given the increasing alienation that many consumers are feeling from the mega banks.
However, when compared to banks, credit unions exude similarities most especially when it comes to the financial services and products they provide to members. These services offered by both financial institutions are things like savings accounts, checking accounts and loans.
CU deposits are also federally insured. In fact, the only difference they have compared to banks is that they generally offer lower interest rates for loans, higher investment returns and more individual personal services for members.
Joining A CU
Thee following provides you with a list of the five benefits you can get from a CU so you will decide whether you want to be a member of one or not.
1. Voice in governance. A key driver for this type of organization. Every member has their voice of governance regardless of account size. And since credit unions are member-owned cooperatives that are democratic, meaning that every member can be elected as an official in the organization.
2. Entitled Top Vote. Every year, the credit union conducts an annual meeting and election. Members select candidates for a position on the Board of Directors. The Board of Directors will represent them for the implementation and setting of the CU's policies. Every member of the organization is either entitled to run as an official or to vote during the election.
3. Serve as a Volunteer. Every member of the organization has the right to serve as a volunteer committee board member. Election in a credit union is based on one member one vote structure. This makes credit unions different from for profit financial institutions.
4. Once an individual opens an account in the credit union, he or she automatically becomes a member. And you can be a member until you are no longer holding or maintaining an account. This means that you can avail of all the current and future benefits the credit union has to offer.
5. Members generally get higher interest rates on savings or share accounts, CDs and interest-bearing checking accounts, and bonus disputes.