All About Credit Unions

Published on May 28th, 2019

Did you know that credit unions work similarly as banks, but they actually have a different main goal? Our credit union near Elmhurst is here to help you figure out if a credit union is right for you.  As you will see, our goal or mission statement is “Working to improve our members’ financial well-being.”

 

What is a credit union?

A credit union is a not-for-profit financial cooperative providing traditional banking services.  Some credit unions are small while others are large entities with thousands of account holders spanning the country. They are created, owned, and operated by their account holders.

 

Credit unions vs. banks

In contrast to most banks, credit unions are structured to serve those with a common bond.  That bond can be a geographic area, an employer, or a church group.  Even if most credit unions have fewer branches, it doesn’t mean they cannot have a similar reach like those of bigger banks.  When you deposit money in a credit union account, you become an owner-member of the credit union. The money that you and others deposit allows the credit union to make loans to other credit union members.

 

As far as profits are concerned, banks send their profits to outside stockholders while credit unions return their profits to their members in the form of generally better rates and lower and fewer fees.  In short, the goal of most banks is to use their account holders as a profit center for their stockholders while a credit union’s goal is to “improve their members’/account holders’ financial well-being.”

 

Credit union advantages

If you enjoy a more personalized service experience, you should look into credit unions.  Since you’re an owner-member, we at Leyden Credit Union are looking out for your best interest and would never try to upsell you on anything that you do not need.

 

Our credit union near Elmhurst is a good choice for you if you are looking for a more member-focused community institution.


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