What Is a Credit Union? The Benefits of Membership

Monday, May 13th, 2019
benefits of a credit union membership

There are many advantages of a credit union membership. Find out what sets a credit union apart from other financial institutions and learn more about how their services can benefit you.

What Are The Advantages of a Credit Union Account?

A Credit Union is a cooperative financial institution that is owned by its members. You can find the same services at a credit union as those offered by a bank. The difference comes when the profits are cycled back to members rather than stockholders. As a member of a Credit Union, you will experience better rates along with lower fees on your deposit accounts.

Definition of a Credit Union

According to the dictionary, a Credit Union is a “nonprofit-making money cooperative whose members can borrow from pooled deposits at low-interest rates.”

The focus of a Credit Union is to assist their members to become financially successful. The members are also owners, and they are who vote to select a volunteer board of directors. To become a member, an initial $25 deposit is required to open your account.

The profits accrued through transactions are given back to members through better rates, higher savings rates, educational programs, and low fees. Your deposits are insured by the National Credit Union Share Insurance Fund and are therefore protected just as the Federal Deposit Insurance Corp covers a bank deposit. As a member of the Credit Union,your money is protected up to $250,000 per ownership category.

Benefits of a Credit Union

The business model followed by Credit Unions makes them much more customer friendly than a bank. Its design is to please members and create bigger profits and provide the best customer service possible. This difference means many of the policies are aimed at being customer-friendly.

The advantages of opening a credit union account include lower fees, lower loan rates, higher dividends and personal service. A Credit Union’s not-for-profit philosophy allows them to focus on member’s needs regarding borrowing money for a home, car or vacation, while also meeting their investment needs with savings, checking, CD’s and IRA’s.

How to Join a Credit Union

There are rules for joining a Credit Union. These are defined by where you live, who you work for, or whether or not you are attending school. Once enrolled in a Credit Union, you can remain a member for life, even if you no longer meet the original membership requirements. Once you’ve established a share or savings account, you will be able to open a checking account or borrow money.

Products and services at a Credit Union are similar to a regular bank; they just use different names. A checking account is called a share draft account, savings are called share accounts, and minimum opening deposit is referred to as the par value. If you are located within Carson, Gray, and Hutchinson counties, you can become a member of Borger Federal Credit Union. Individuals who attend school, work, reside, or worship in these counties are eligible for our services. These services include online banking, savings accounts, checking accounts, and loans.

Your Membership Matters at BFCU

At Borger Federal Credit Union, we care about the needs and empowerment of our members. We strive to provide members with valuable insight and financial advice. We are able to offer lower rates on loans, and offer a variety of services at the best possible rates. Call Us today and start enjoying the benefits of membership. You can also Contact Us through email or visit us during business hours to speak to a representative. We are located at 1051 N. Florida Borger, TX 79007.