Credit Unions are Different

Did you know that your credit union is very different than a bank? When you call or walk into The Florist Federal Credit Union, the differences might not be obvious, but credit unions and banks have very different philosophies and structures. While both financial institutions may offer similar products and services, the similarities stop there. There are major differences in ownership, in interest rates, and in the service provided.

Did you know that:

·        Members own a credit union. Credit unions are member-owned not-for-profit financial cooperatives. More than 80 million members own 10,500 U.S. credit unions with combined assets of $450 billion. Stockholders own banks (with combined assets of $6.2 trillion). Banks make money for stockholders, not for customers. Credit unions use returns on investment to help keep rates low on money borrowed and high on your savings and to provide members with better service.

·        Credit unions are the only democratically controlled financial institutions in the United States. Members elect a volunteer board of directors to oversee the credit union. The manager or president/CEO reports to this board. Bank directors are paid to make decisions that benefit stockholders, not customers.

·        Credit unions often have lower rates on loans and higher returns on savings. Credit unions price loans, pay interest on funds you’ve deposited, and charge fees to provide you with high-quality, low-cost services. Banks price products and services to make a profit. Members earn more on their savings at a credit union. And members often save more on loan rates at a credit union.

·        It is part of the credit union mission to help educate members about finances, identify theft, and technology security. The Florist Federal Credit Union stresses education, providing materials and assistance to help you make informed buying decisions. Many banks simply advertise their rates and sell their services.

The Florist Federal Credit Union