Why Northeast Credit Union
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Credit Union vs. Banks
The Credit Union Difference
Credit unions exist to help people, not make a profit. They are not-for-profit cooperatives, owned by their members who save and borrow there. In fact the credit union motto is "People Helping People". The goal of credit unions is to serve all members well and in turn, members are loyal for this reason.
Members know their credit union will be there for them in bad times, as well as good. The "People Helping People" philosophy extends to communities in which credit unions operate. Credit unions and their employees get involved in community charitable activities by donating money, time and their resources.
Credit unions assist members to become better educated consumers of financial services. Many credit unions offer free financial counseling and education programs to their members and within their local communities. Each credit union is governed by a volunteer board of directors, elected by and from the credit union's membership.
Credit unions are an economic democracy with each credit union member having equal ownership and one vote - regardless of how much money a member has on deposit. At a credit union, every account holder is both a member and an owner.
Members of credit unions benefit in a number of ways from their access to competitive products and services to the financial benefits found in lower loan interest rates and higher interest on deposits. Credit unions provide a secure financial choice for all consumers, all the while, staying true to our mission of "People Helping People".
The terms credit unions and banks are very often used interchangeably. Although both are financial institutions there are unique differences between the two.
Credit Union MembershipChances are nearly everyone is qualified to join at least one of the 8,000 credit unions in the United States, but there are restrictions. Some may be community-based, where only people who live, work, worship or attend school in certain areas are eligible to become members.
Northeast Credit Union is community based which means if you live or work or do business in New Hampshire, in southern York County, Maine or within 30 miles of one of our branches, you are eligible for membership at Northeast Credit Union.
OwnershipCredit unions are not-for-profit, member-owned financial institutions that seek to promote the financial well-being of its members through a system that is cooperative and volunteer directed.
Credit unions exist solely to serve their members and income is returned to members through offering higher interest rates on deposits and lower rates on loans.
Banks are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by stockholders.
Credit unions are owned by their members. In addition to being an owner, each credit union member, regardless of how much he or she has on deposit, has an equal vote in elections. Credit unions are democracy in action.
InsuranceMany credit unions are insured by the National Credit Union Administration (NCUA). They are an independent federal agency that charters federal credit unions and supervises their activities. National Credit Union Share Insurance Fund (NCUSIF)-insured shares carry the full faith and credit of the United States government, just like Federal Deposit Insurance Corporation (FDIC)-insured deposits, and have the same insurance limits on accounts at insured institutions. The National Credit Union Association publication "Your Insured Funds" has all the details on share insurance.
Range of servicesAll financial institutions usually offer basic banking services (checking and savings accounts, consumer loans, etc.) with larger ones offering a fuller range of services (credit cards, mortgages, foreign currencies, etc.).
Banks emphasize business and consumer accounts, and many provide trust services. Credit unions emphasize consumer deposit and loan services.
Rates and FeesCredit Unions
Comparing Credit Unions and Banks
Credit unions have definitely kept up with the times! Many credit unions offer the same high-tech services as your local banks, like home banking, online bill pay, online check images and online loan applications. Even better, credit unions generally charge much lower fees for these awesome services than do banks.