Discover the Credit Union Difference.
Why Northeast Credit Union is different than a bank.
The terms credit unions and banks are often used interchangeably. Although both are financial institutions, there are unique differences between the two.
The credit union motto is "people helping people" and this philosophy extends to the communities in which credit unions operate. Credit unions and their employees get involved in community charitable activities by donating money, time and resources.
Not for Profit
Credit unions exist to help people, not make a profit. They are not-for-profit cooperatives, owned by the members who save and borrow there. 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.
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 seek to promote the financial well-being of their members through a system that is cooperative and volunteer directed. Unlike banks, they do not pay stockholders. Instead, earnings are returned to members in the form of lower rates on loans and higher interest on deposits. Each credit union is governed by a volunteer board of directors, elected by and from the credit union's membership.
Chances are nearly everyone is qualified to join at least one of thousands of credit unions in the United States, but there are membership requirements. 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, work, attend school 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.
Credit unions offers a wide range of financial products and services. Along with traditional checking and savings accounts, they include mortgage and investment products, business accounts and lending services, as well as innovative online and mobile services, to name a few. This array of financial products and services are not always found at other financial institutions, including banks.
Just like the Federal Deposit Insurance Corporation (FDIC) Insurance that banks carry, credit unions are insured by the National Credit Union Administration (NCUA) with the same insurance limits. The NCUA is an independent federal agency that charters federal credit unions and supervises their activities.
Northeast Credit Union has complemented the federal share insurance with an additional $250,000. This savings protection is available at no charge on all qualifying accounts through ESI, a private insurer. That could bring your protection up to $500,000. Make sure your accounts are set up so that you can take advantage of this extra protection by contacting a Member Services Representative at 888-436-1847.