//A Look Inside a Credit Union
A credit union is a not-for-profit financial institution owned by its “members.” Why is this a big deal? Compare this with banks where people are just customers. The primary goal of a bank is to make money for shareholders, which explains the high fees and high loan rates. A credit union is different. They are the only democratically controlled financial institutions in the United States.
Here’s what the typical credit union looks like:
- Members are the owners of the credit union, and vote for the Board of Directors and the Supervisory Committee. Members can run for any of these positions.
- The Board of Directors is made up of unpaid members who volunteer their time and talent to provide direction, as well as guidance, to the president or CEO.
- The Supervisory Committee serves as a means of checks and balances. This volunteer committee examines and audits the affairs of the credit union.
- Credit Union Staff handle the day-to-day operations and are overseen by a credit union president or CEO. Additional staff may include managers, loan officers, marketing professionals, accounting specialists, and member service representatives.
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Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency