All About Credit Unions- ATM Money MAchine

1. Wondering what a credit union is and how to join one? Credit unions are member-owned lending institutions that serve about 100 million people in the United States. They focus on offering good returns and affordable services for everyone who joins. They also operate on a system of people supporting one another in achieving all of their financial goals. When money goes into a credit union, all of the members of the credit union are able to benefit from the investment. Loans, savings, and withdrawals from a credit union ATM create a balance of giving and receiving, so that all of the members of the credit union can meet their financial needs anc achieve their goals. Can I join a credit union? Most people are able to qualify for a credit union membership somewhere, based on where they work, live, attend school, and worship or based on associations and organizations that they belong to. And most credit unions will qualify a person based on the eligibility of a family member, so if you don’t automatically qualify for a credit union but your mother does, you can become a member. Some qualifying credit union associations are very easy to join, so many individuals will join an eligible association to become a member of the credit union.

2. What is the difference between a credit union and a bank? Many people think that credit unions and banks provide the same exact products and services. And they are very similar in many ways. For example, banks and credit unions are both financial institutions that offer people the ability to save money, write checks, get loans, and use debit cards. However, there are a few major differences between credit unions and banks, including: ●Credit unions are not-for-profit. The biggest difference between a credit union and a bank is their tax status. While a bank is a for-profit organization, a credit union is not-for-profit. Bank profits are returned as earnings to their stockholders, and stockholders receive their income through the bank customers. However, credit unions are not trying to turn a profit, so they can return their earnings to the members of the credit union in the form of higher interest rates on savings accounts and lower interest rates on credit cards and loans. ●Credit unions are member controlled. Bank account holders are unable to vote in the decisions made by the bank. Instead, the bank’s board of directors is legally required to make decisions in the best interest of the stockholders. However, the board of directors for credit unions is elected by the members, giving the members much more influence on the credit union, since each credit union member has an equal vote no matter how much money they have in the credit union.

3. ●Credit union fees are lower on average. Credit union fees tend to be lower on average, since credit unions are not-for-profit, while bank fees tend to be higher, since they are trying to turn a profit for stockholders. Thank You