LCU Logo

What is a Credit Union?

Credit unions are not-for-profit financial co-operatives, dating back to the 16th century. Because individuals' ability to borrow from banks was greatly restricted, farmers pooled together their funds to lend each other. The original concepts of ownership by all and lending at reasonable rates continue until this day.

At Leyden Credit Union (LCU), each member is required to maintain a $25.00 savings account and is in turn an owner of the credit union. Because it is not-for-profit, savings rates at LCU are generally higher than those of banks while rates for loan products are generally lower than banks. Fees are significantly lower and profit is returned to members in the form of dividends.

Each member is entitled to vote for our Board of Directors, who determine credit union policies. Our directors are members who volunteer their time and are selected at the Annual Meeting. In contrast, those in the banking industry are chosen by management and are paid for their services.

Below is a comparison of how credit unions differ from banks.

 

Credit Unions Banks
Not-for-profit Profit returned to shareholders
Owned and operated by members Owned by shareholders who have no part in everyday operations
Board of Directors voted by  members at Annual Meeting and  volunteer their services Board of Directors chosen by management and compensated for services


2701 N. 25th Ave.   -   Franklin Park, IL 60131
847-455-8440   -   fax 847-455-1245

Copyright 2001 Leyden Credit Union, All rights reserved.