- Credit Union Advocacy
- Connect For The Cause
- Credit Union Difference
- Credit Union History
- Credit Union Links
- About RCU
- The RCU Story
- The Credit Union Difference: Service, Value, and Trust
The Credit Union Difference
Everyone benefits from credit unions – our Members, our communities, and even those not yet Members benefit from credit unions being an important and unique provider of financial services.
Credit unions are unique for many reasons. First and foremost, we are for service – and NOT for profit – which means each and every day we provide affordable financial services to our Members and the communities we serve. Any earnings the Credit Union realizes are returned to our Members in the form of lower loan rates, higher deposit yields, to offset fees, and to expand services such as additional branch and ATM locations or to add online services.
Credit unions are also well known for our support of the communities we serve — and we do this through authentic involvement, volunteerism and sponsorship of nonprofits and community groups and events, and by providing free education and financial literacy services.
Credit union even benefit non-members by serving as important competition to banks and other financial institutions in the marketplace, because credit unions provide great value on fair and reasonable rates and fees on financial products and services.
The Credit Union Difference
As not-for-profit financial cooperatives, credit unions are uniquely different from other financial institutions. Following are just some of the ways our model is unique:
Credit Unions are not-for-profit.
Credit unions are not-for-profit financial cooperatives.Unlike other financial institutions that offer products and services in order to achieve profits for stockholders, credit unions exist simply to serve the financial needs of their Member-Owners. When credit unions realize earnings, they are returned to Members in the form of lower loan and higher savings rates, to offset fees and to expand service, such as adding branches and ATMs. That’s why credit unions are able to offer such tremendous value on products and services.Credit Unions have Members and Defined Fields of Membership
Credit unions have “Members,” who are consumers and small business owners who become Members by opening a “Share” savings account – in Redwood Credit Union’s case, a simple $5 deposit in a savings account is required before Members become owners and have access to all other services. Additionally, Credit unions are limited to serving those whom their state and/or federal regulator has approved them to serve in their “Field of Membership.” Redwood Credit Union is a community credit union and can serve anyone living in San Francisco or one of seven North Bay counties.Credit Unions have Volunteer Boards and are owned by Members
Credit unions have volunteer Boards of Directors who are Members of the credit union, and are elected by the Member-Owners.Credit Unions don’t pay taxes on profits
Because taxes are levied on profits and credit unions are not-for-profit organizations, income taxes are not assessed. Credit unions do pay state sales, property and employment- related taxes, and these funds largely remain local to provide vital services to residents and businesses.Credit Unions are full-service financial institutions
Like other financial institutions, credit unions today are largely full-service, which means they offer a wide array of financial services for consumers and small business owners.Credit Unions are federally insured by the US Government
Credit Union deposits enjoy federal insurance to $250,000, by the National Credit Union Association (NCUA). This means that credit union Members enjoy the same level of federal insurance as banks, and it is backed by the full faith of the U.S. Government.
Credit Union Advocacy
As a credit union supporter, let your voice be heard on vital credit union issues by registering today for Connect for the Cause (see below).
Connect For The Cause
Connect for the Cause is a website created by The California and Nevada Credit Union League. Sign up today to ensure your voice is heard!
www.connectforthecause.orgCredit Union History
Learn more about the history of not-for-profit financial cooperatives!
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