A credit union is a financial cooperative, owned and controlled by its members.
Unlike a bank or other savings institution, it is not-for-profit, which means
that earnings are returned to members in the form of better rates on their savings
and loans or are invested in new or improved services.
Members: All members of a credit union
have something in common. They may work at the same
place, belong to the same association, or live in the
same area. Once you purchase a share in the credit union,
you become a member. And as a shareholder, you help
to set the policies and direction of the credit union
by electing the board of directors on a one-member,
one-vote basis. Officers, directors, and committee members
serve without pay.
Savings: Credit unions want to help
you meet your financial goals. Available savings plans
usually pay dividends that are comparable to, or even
better than, the interest paid on savings accounts offered
at other financial institutions.
Loans: Only members can borrow from
credit unions. Credit unions specialize in consumer
loans for cars, vacations, education, home improvements,
personal emergencies, and other needs -- often at interest
rates lower than those of other lenders.
Services: Service is friendly and
personal. Members are treated with dignity and respect.
Many, though not all credit unions, offer payroll deduction,
direct deposit of net pay, checking accounts, credit
and debit cards, money orders, automatic bill payment,
home mortgage and home equity loans, market rate savings
accounts, guaranteed student loans, individual retirement
accounts (IRAs), ATMs, loan protection insurance, and
life savings insurance.
Safety: Like other financial institutions,
credit unions are closely regulated. Savings at all
Delaware credit unions are insured for up to $100,000
by the National Credit Union Share Insurance Fund, administered
by the National Credit Union Administration (NCUA),
an agency of the federal government.
All credit unions are based on the concept of "people helping people.®"
They are "not for profit, not for charity, but for service.®"
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