About Credit Unions
What is a credit union?
What makes a credit union different from a bank or savings & loan?
Why should I join a credit union?
What is a credit union?
A credit union is a cooperative financial institution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or worship. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates.
Credit unions, like other financial institutions, are closely regulated. And, they operate in a very prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 11,000 federal and state-chartered credit unions nationwide. Share/Savings Accounts are insured up to $100,000 and IRA Accounts are insured up to $250,000.
What makes a credit union different from a bank or savings & loan?
Like credit unions, these financial institutions accept deposits and make loans--but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments. This means that, unlike banks, the credit union's primary objective is to satisfy the financial needs of its members. As a result, credit unions are able to pay high dividends on share/savings and share draft/checking accounts and charge low interest rates on loans.
The credit union idea is a simple one: People should be able to pool their money and make loans to each other. It's an idea that evolved from cooperative activities in 19th century Europe.
Since that time, the idea's guiding principles have remained the same: (1) Only people who are credit union members should borrow there; (2) loans are made for "prudent and productive" purposes; (3) a person's desire to repay (character) is considered more important than the ability (income) to repay. Members are, after all, borrowing their own money and that of their friends. These principles still govern most of the world's credit unions
Why Should I Join A Credit Union?
When you invest in the credit union you're not only making a wise financial decision for yourself, you're also helping other B.O.N.D. Community Federal Credit Union members reach their financial goals. Members put their money into a variety of share/savings and investment accounts. This money is then lent to members who pay interest. After operating expenses and reserve requirements are met, the remaining loan income is returned to the members.
The credit union's earnings are returned to members in the form of higher dividends, lower loan rates, lower (or no) service fees, and more convenient services. And, because each member owns a share of the credit union, you have the opportunity to vote in credit union elections.
By joining the credit union, you and your eligible family members become B.O.N.D. Community FCU members for life! No matter where you live or work in the future, your membership will continue as long as you maintain an active share savings account and remain a member in good standing.
