Most people don’t really give much thought to credit unions. Some may ask how they differ from traditional banks such as Citi, Wells Fargo, or Chase. Credit unions are different from traditional banks in that they are not-for-profit organizations and their board consists of elected volunteers, which are also members. Money that is invested is loaned out, at interest, to other credit union members.
Credit unions are geared to attract certain clientele. Membership is based on geographic location, occupation, etc. Because credit unions are nonprofit organizations, they are able to offer higher interest rate returns to its members on their savings or checking accounts. They are also able to offer business or home loans to members who wouldn’t normally qualify at a traditional bank.
Is your money safe in a credit union? Yes, credit unions are insured by The National Credit Union Administration (NCUA). The NCUA is an independent federal agency that charters and supervises federal credit unions. Look for the official NCUA blue-and-white sign to find out if your credit union is insured.
Credit unions are all about its members, and offer better rates and lower fees. Traditional banks offer the same services but usually at a fee. Traditional banks have shareholders they must appease as to where credit unions’ shareholders are its members.
In today’s economy, people are losing their jobs and a lot of what they worked hard for. They do not want to worry about bank fees. Credit unions usually offer free checking and/or savings accounts. They also provide the same services such as direct deposit, electronic banking, ATMs, overdraft protection, and loans.
When investing with anyone, there is always a risk, but you can assure that investing with a credit union is a safe and smart choice.
To find out about investments and other financial services, contact VFCU at their Brownsville credit union branch at (956)546-3108, or their Harlingen credit union branch at (956)425-5668.