Ever tell someone you’re a member of a credit union and have them ask you what a credit union is or how it’s different from a bank? Here’s a cheat sheet you can use to answer them the next time it comes up!
- Democratic Control: The Board of Directors of most banks are appointed by shareholders and are responsible to them, not the bank’s customers. The Board of Directors of a credit union are drawn from the ranks of members and are elected to serve by members, with every member having an equal vote.
- Distribution to Members: Banks are in business to make as much money as possible for the wealthy investors who own it. Credit unions are not-for-profits in business to serve their members, so the profits flow back to members in the form of improved services, better loan rates, lower and/or fewer fees, and more interest on savings.
- Service to Members: Banks serve their owners, the wealthy investors who hold the company’s stock. Credit unions also serve their owners, but their owners are each and every one of the credit union’s members. Banks make decisions to enrich the few who own it while credit unions look to benefit the entire membership.
So the next time someone asks why you are a credit union member you can proudly tell them, “Because credit unions put members first!”. Know someone who might benefit from becoming a credit union member? You can refer them to PCCU and you’ll both earn $25, plus you’ll be entered in a quarterly drawing with a chance to win $500! Refer them digitally here, or pick up some referral cards on your next trip to the credit union.