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Please take this short Quiz to check your Credit Union knowledge!
A credit union's charter defines its field of membership--the "common bond" that people must share to be able to join. Today, your eligibility may be based on where you live, work, worship, or attend school; your family; or what organizations you belong to.
Credit unions provide many services that banks offer, but the big difference is in their core values. At a credit union, people come before profit. You're both a member/customer and an owner, with a vote in determining the direction of the credit union. Because credit unions are not-for-profit, all earnings go back to the members in the form of great rates and low fees. Banks exist to make a profit for shareholders, so they define success differently.
Credit unions belong to many cooperative networks of ATMs or branches all across the country. There are literally thousands of shared credit union branches, and tens of thousands of ATMs to make financial transactions convenient no matter where you are--online or in your home, car, or community.
While their values and structure differ from banks, credit unions offer the same wide range of services, such as:
- Credit cards with low or no annual fees and competitive interest ratesDebit/check cardsDirect deposits, payroll deduction, ACH and wire deposits?Financial planning, education, and counseling servicesHigh dividend rates on savings accounts, share certificates of deposit, IRAs, and money market accountsInvestment and brokerage servicesOnline and mobile bankingChecking accounts, often with no service fees or minimum balancesCompetitive interest rates on loans--including mortgages, home equities, lines of credit, and personal and vehicle loansNotary servicesOnline and mobile bankingSavings accountsATMsInsurance plansElectronic tax filingThe answer is TRUE.
Credit unions must comply with most of the same regulations that banks do. In fact, to ensure safety and financial soundness, credit unions face more restrictions than banks in the investments and loans they can make. And, credit unions follow conservative investment practices, lend responsibly, and live within their financial means, so you can trust your credit union's decisions.The answer is TRUE.
Just like the Federal Deposit Insurance Corporation (FDIC) insures bank deposits, the federal government's National Credit Union Share Insurance Fund (NCUSIF) states that your savings are federally insured to at least $250,000.The answer is FALSE.
There's no membership fee. While credit unions do ask you to keep a minimum amount on deposit, that amount is very small--usually $5 to $25--and in most cases you will receive it back if you close your credit union account.