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A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. Their result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exist to benefit them, not to make a profit.
Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investment. A credit union doesn’t operate in that manner. Rather, each credit union member owns one “share” of the organization. The user of credit union services is also an owner, and is even entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.
Yes. Each account is insured up to $250,000 by the National Credit Union Administration in Washington , D.C. , a US government agency.
Employees of Health Care Service Corporation, Fort Dearborn Life Insurance Company, Dental Network of America, Hallmark and subsidiaries and affiliates of HCSC and their spouses and immediate families.
Definitely. The Board of Directors, officers and employees of the Credit Union are extremely aware of their responsibility to keep all members’ business confidential.
The amount of your shares represents your ownership in the organization, so the distribution of the organization’s profits is called a dividend.
Once a member, always a member. You can still maintain your membership in the Credit Union, entitling you to savings and loan privileges. |
