What is a Credit Union? A credit union is a cooperative financial institution; owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates.
What are the benefits of credit union membership? As mentioned above, each member of a credit union is a part-owner in the financial institution. In return, credit unions often provide lower interest rates and higher dividend rates, because surplus earnings are returned back to the member-owner. Credit union membership allows member-owners a vote and voice in credit union management, which guarantees that member needs are met.
How are credit unions governed? Credit unions are governed by a Volunteer Board of Directors, who are elected by the credit union membership to set the policies and rates of the credit union. Each credit union member has one vote, no matter how much money the individual has in the credit union. Credit unions hold annual membership meetings to elect new board members.
How are credit unions chartered? Credit unions have either a federal or state charter. Federal charters are granted by the National Credit Union Administration (NCUA) in Washington, D.C. In Alabama, state charters are granted by the Alabama Credit Union Administration (ACUA).
Who regulates credit unions in Alabama? The National Credit Union Administration (NCUA) and the Alabama Credit Union Administration (ACUA).
Are credit unions safe? Yes! Credit unions are insured by the National Credit Union Share Insurance Fund (NCUISF), which is administered by the federal government. Credit union accounts are insured up to $100,000, the same amount as other financial institutions.
How do I join a credit union? Click Here - http://www.creditunion.coop/cu_locator/index.html. Use the Alabama Credit Union League Match-Up Program to find a credit union that you may be eligible to join. Fill out the requested information and click enter. The database will generate a list of credit unions that you may be eligible to join and will include all the contact information you need.
