Ever feel like your bank sees you as just another account number? You're not alone. More people are discovering there's a better way to bank — one where you're actually an owner, not just a customer. Welcome to the world of credit unions, where your financial goals matter and your voice counts!
What Is a Credit Union?
Picture this: a financial institution that began with neighbors helping neighbors get affordable loans when big banks wouldn't. That's exactly how credit unions started in the 1850s, and that people-first mission continues today.
Credit unions are financial institutions owned by their members — meaning when you open an account, you become both a member and an owner. Whether federally chartered (overseen by the NCUA) or state-chartered, credit unions focus on one thing: helping members make the most of their money.
How Credit Unions Differ From Banks
Here's where things get interesting: banks and credit unions handle money differently. When banks make a profit, that money goes to shareholders who may live anywhere in the world. But credit unions? They send those profits right back to their members (that's you!) through better rates on your accounts, more affordable loans, and reduced fees on everyday banking services. It's that simple.
Think of it as your money staying in your community. When you deposit money at a credit union, those funds help your neighbors buy homes, start businesses, or send kids to college. Then, when the credit union earns money from these loans, it goes right back to members — not to Wall Street. It's a simple but powerful cycle that keeps your money working for your community.
Benefits of Joining a Credit Union
Want to know what makes credit union membership special? Here's why millions of Americans choose credit unions over traditional banks:
- Better rates and fewer fees mean more money stays in your pocket
- Local loan decisions that consider your unique situation, not just a credit score
- As a member-owner, you can vote on credit union leadership and major decisions
- Your deposits support local businesses and neighbors, strengthening your community
Despite these clear advantages, some common misconceptions keep people from experiencing the credit union difference. Let's set the record straight on a few myths you might have heard.
Common Myths About Credit Unions Debunked
Myth 1: Credit Unions Have Limited Services
"But what about all those fancy banking features?" Don't worry – modern credit unions pack the same technological punch as big banks. From mobile banking and online bill pay to mortgages and investment options, we've got all the tools you need to manage your money. The bonus? These services are built around what members actually need.
Myth 2: Credit Unions Are Not Safe
Here's something that might surprise you: your money is just as secure in a credit union as it is in a bank. The NCUA provides the same $250,000 federal insurance that banks get from the FDIC. Some credit unions even offer extra coverage beyond that.
Myth 3: Credit Unions Are Hard To Join
Think joining a credit union requires a secret handshake? Not quite! While membership requirements exist (it's what keeps us local and focused), they're usually as simple as living or working in certain areas. Many people are surprised to learn they qualify for several credit unions in their area.
How To Find and Join a Credit Union Near You
Finding the right credit union is easier than you might think. Most credit unions welcome members based on where they live, work, or participate in their community. When researching credit unions in your area, consider what matters most — whether that's convenient locations, strong digital banking options, or specific financial services that match your needs.
Think Pink
At City & County Credit Union, we believe banking should be personal, simple, and rewarding. If you live, work, worship, volunteer, or attend school in Carver, Hennepin, McLeod, Meeker, Ramsey, Washington, Wright, or Northern Dakota County, we'd love to show you what better banking looks like.