Credit unions are financial institutions that exist to help hard-working people like you work, live, and thrive. Unlike banks, credit unions are not-for-profit and are owned by their members. This structure ensures that earnings benefit members’ financial well-being, not shareholders. Here are just a few examples of how a credit union membership takes your finances further:
Credit unions prioritize you, not shareholders.
Credit unions aim to strengthen communities and help members reach financial goals.
You can expect more personalized service at credit unions than at traditional banks.
Credit unions' profits are shared with members through:
Higher interest rates on savings accounts.
Fewer or lower fees.
Lower interest rates on loans and credit cards.
Individualized lending flexibility.
Not-for-profit
All profits are returned to members
Member focused
Insured by NCUA up to $250,000
Volunteer board of directors Community-based
For-profit
All profits go to stockholders
Stockholder focused
Insured by FDIC up to $250,000
Paid board of directors
Typically large, nationally based
Why do credit unions have membership requirements?
Credit unions are required by law to have a “field of membership.” This field of membership is a specific group of people the credit union can serve. Examples of field of membership criteria may include:
Geographic location
Employer
Employee group
School affiliation
Military and government agencies
Church membership
Don’t let this deter you - 99% of Americans are eligible to join a credit union!
Becoming a member of a credit union is easy! Once you’ve found a credit union to join, you’ll simply fill out some paperwork and make the minimum deposit (typically $5) to open a checking account. You may notice that credit union checking accounts are called share draft accounts. That’s because you own a share of the credit union as a member. You are now part-owner of the credit union!