It’s because all credit unions are not-for-profit cooperatives that are owned by their members. And while the members come from all walks of life‚ by and large those who belong to credit unions are everyday people — 97 million of them‚ in fact‚ across the U.S.
As not-for-profits‚ credit unions return what they earn to their members in the forms of lower rates on loans, higher returns on savings and lower and/or fewer fees.
In fact‚ for every $1 of their tax exemption‚ credit unions return $10 to consumers in better rates and lower fees. That’s a solid investment in our communities. Now some (mostly banks) say credit unions should pay income taxes even though it was banks (not credit unions) that took huge governmental bailouts.
The truth is if credit unions were taxed — and remained not-for-profits — it’s unlikely their members could continue to receive lower rates on loans, higher savings returns, and low fees.