Both credit unions and banks offer almost entirely the same products and services, but it's how they offer those services that makes them different.
At a credit union, you are a member not a customer. You are a member because you are an owner of the credit union. Banks have customers because only a few people (stockholders) own the bank.
At a credit union, you qualify for membership such as through where you work, being related to someone who already is a member, or through where you live.
When a savings account is opened at the credit union, it is called a share account because every member is an owner of the credit union.
Credit unions typically charge lower loan rates, pay higher dividends on savings, and have fewer fees.
Credit unions are considered not for profit because all profits are returned to every member in the form of rates, services or special dividends.
So you see, credit union membership offers you partial ownership and many other perks.
What do you think is the greatest part of being a credit union member?
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Categories: Kids and Money, Saving