WHAT'S A CREDIT UNION

A credit union is a democratically controlled financial cooperative that is "not for profit, not for charity, but for service."  Credit unions emphasize economic independence by helping their members learn to save and borrow prudently.

All credit unions have a field of membership, which determine who may join.  Only members may belong or vote.

A credit union's Board of Directors are qualified, unpaid volunteers who the members elect.  They work for the membership's best interest, not for the interest of a few stock holders.

	How Credit Unions Compare
Feature	Credit Unions (CUs)	Banks and S&Ls
Philosophy	Not for profit, not for charity, but for service.  Earnings returned as better rates, fewer and lower fees, improved services	Business Oriented.  Generate profit for shareholders.
Control/Management	Member-elected, unpaid volunteer directors.	Share-holder elected, paid directors.
Savings	Share and money market accounts, time deposits, and other plans available.	Regular savings and money market accounts, certificates of deposit, and other plans available.
Loans	A wide variety of loan types including personal, auto, share-secured, home improvement, mortgage, student and credit cards.  Loan consideration takes into account applicant's character and capacity to repay.  Loan rates generally lower than at banks and S&Ls.	A variety of loan types but banks traditionally are oriented toward commercial loans, S&Ls oriented toward mortgages.  Loan consideration usually based on applicant's credit record and capacity to repay.  Loan rates usually higher than CU rates.
Share/Draft Checking	Most CUs offer at least one of the following draft accounts: economy checking, regular checking, or interest-bearing checking.	Checking account types similar, but more banks charge fees associated with their accounts than do CUs.
Fees	CU fees typically are usually fewer and lower than bank fees.  CUs rarely price fees to produce revenue.	Fees account for nearly one-third of banks' total profits.
Safety	Deposits in nearly all CUs are insured up to $100,000 by federal or private insurer.	Nearly all accounts insured up to $100,000 by a government agency.

Note: Descriptions are generalized.  Services offered by individual credit unions, banks and S&Ls will vary.