IU Credit Union is part of a huge network of more than 4,400 credit unions serving more than 138 million Americans nationwide. Even if you’re already a credit union member, you might not know how credit unions are different from banks.
A credit union is like a financial co-op, owned and run by its members. They usually serve people who share something in common, like where they live or work. Joining a credit union is empowering because they’re not-for-profit, meaning they exist to help you save money and get loans at fair rates.
The National Credit Union Administration (NCUA) is a federal agency that insures deposits for credit union members at over 98% of federal and state-chartered credit unions across the country. The rest are covered by safe private insurers. Your deposits are insured up to $250,000, so your money is secure.
The credit union philosophy is “not for profit, not for charity, but for service.” They always have their members’ backs and offer a level of service you usually won’t find at other financial institutions. Whether it’s giving a loan to cover unexpected medical bills, offering financial counseling to someone whose employer shut down, or just providing a better deal on a used-car loan or mortgage, credit unions truly make a difference for their members and the communities they serve.
Credit unions do everything banks do — they accept deposits, make loans, and offer a full range of financial services. But here’s the kicker: banks are all about making money for their stockholders, while credit unions are all about serving their member-owners. No stockholders here, just benefits like lower loan rates and higher deposit rates for you.
Credit unions are the only financial insititutions in the U.S. that are democratically controlled. At IU Credit Union, members get to elect a volunteer board of qualified individuals to oversee the credit union, and the president reports to this board. On the flip side, bank directors are paid and have to make decisions that benefit stockholders, not customers.
According to the Credit Union National Association (CUNA), credit unions offer better deals on average. They provide about $110 more per member and $231 per household annually in benefits compared to banks.
Visit our Membership page to learn more about joining and opening your account today!
