Why is a Credit Union Different?
YOUR credit union differs from banks in some fundamental ways. Here
are some other ways YOUR credit union differs, and terms that you
Share Account: Your Savings Account at
the credit union is called a "Share Account." That's because you are a
"shareholder", making you an owner in the credit union.
Dividend: The interest paid on your
savings account is called a "dividend."
Share Draft Account: Technically, your
checking account is called a "Share Draft Account." That's because what you are
really doing is writing a "draft" against your shares with the credit union.
Volunteer Board of Directors: Most
financial institutions have a Board of Directors. What makes your credit union different
is that these board members, all of whom belong to the credit union, volunteer their time.
Not-for-Profit: Any profit earned from
borrowing funds or investments is returned to you in the forms of dividends, lower fees
and reduced loan rates. Because credit unions are organized to help members, not for the
specific purpose of making money, they are described as not-for-profit.