YOU are the Difference Between Credit Unions and Banks

Is there really any difference between credit unions and banks? I have probably answered this question many times to people who have very valid observations. They see similar accounts, loans, branches, ATMs and other elements that make banks and credit unions look like one in the same. Logic tells them if it looks like a bank and operates like a bank, it must be a bank.

The truth is that credit unions operate very differently from banks, and the reason is YOU – the credit union member.

In Business for YOU

Every financial institution would have you believe they are in business for their members or customers, but it just isn’t true. Banks are in business to make money for their investors or stockholders. Business decisions are made to protect the financial interest of those investors. They are not made in the best interest of customers.

Credit unions ARE in business for YOU.  Your share savings account makes you a credit union stakeholder, or as we like to call you, part owner. That’s right. You own part of your credit union. Business decisions are made with your best interest in mind, because you have placed your trust and your money with us. Credit unions have no other stockholders or investors. We don’t even pay our board of directors like banks do. Our directors are all unpaid volunteers.

Not for profit, but for PEOPLE, like YOU

Credit unions are not for profit, there’s no denying that. Now, that doesn’t mean we don’t make money. We still have to pay our employees, keep the lights on and maintain our technology. We’re also required to keep more money in reserve or savings than banks are. Whatever is left goes back to you in the form of lower loan rates, better deposit rates and improved services. Do you see how you benefit from a financial institution that doesn’t have to pay investors? It’s not about them at a credit union. It’s about YOU!

YOU are worth more than money

Credit unions truly operate on the understanding that people are worth more than money. Credit unions were formed to help people who needed a safe, affordable place to save money and a place to borrow money for small businesses and skilled trades. Even in the 1800s when credit unions were first formed, banks were not willing to take a chance on certain people or livelihoods. Today, we continue to operate on the philosophy of people helping people. We care about you and your financial well-being, not just about the money you have on deposit with us.

We may look like the other guys on the outside, but on the inside, it’s all about YOU. Thank YOU for trusting Neighborhood Credit Union with your financial needs. We appreciate YOU.