The Perks of Credit Union Membership
Credit Unions and banking institutions may not seem so different from the outside, but to those who are members of a union immediately see the differences. For example, checking accounts are referred to as share draft accounts and customers are referred to as members. However, there are other unique benefits that credit union members have that banking institutions don’t offer.
Members own the credit union
Unlike the customer of a bank, a credit union member owns a share of the union itself. When opening an account, the member is immediately granted a share of the institution. Banks, however, are business institutions that are owned by certain individuals, shareholders, or even other companies. Customers of a bank have no say in the practices of the institution based on their interests, which brings up the second perk.
Members vote on who serves on the union board
Different members have different interests and ideas as to how the credit union should be run. A credit union offers members the power to choose who serves their best interests on the base of philosophy. Also, no matter how much a member has in their account, each is only allotted a single vote, thereby not allowing any one member to have more influence over the other based on income. As a plus, each member of the board must be a member of the union, meaning that those who serve on the board are directly influenced by the outcome of the voting process should they be chosen to serve.
Members have much in common
Members of a credit union share a common bond in that each owns a stake in the union, meaning that each member owns something similar. In order to join a credit union, each potential member must meet certain criteria, such as area of residency, place of employment, or memberships in other groups. A credit union is similar to a club. Rather than benefitting any one single person, all members are affected.
If you are considering joining a credit union and would like to know the criteria for membership, contact Brownsville’s top credit union, Valley Federal Credit Union, at (956) 546-3108.