Neighborhood Credit Union - About Us - Press Room - Credit Unions

About Credit Unions

Credit unions are regulated financial institutions formed by organized groups of people who pool their assets to provide loans and other financial services to each other.

U.S Credit Union Stats...

There are 8,224 credit unions nationwide.
Credit union memberships total 90.8 million.
Credit union assets exceed $822 billion.
Credit union savings stand at $690 billion.
Credit union loans outstanding total $573 billion.
More than 100,000 people serve as volunteers on credit union boards and committees.

Credit Union History...

Credit unions were first started in 1844 in Rochdale, England by a group of weavers who sold shares to members to raise the capital necessary to purchase goods in bulk at bargain prices and resell the goods to members at a savings.
The credit union movement spread to Germany in 1850, Canada in 1901 and the United States in 1908.
In 1934, Congress passed legislation allowing credit unions to be organized anywhere in the U.S.
In 1934, the Credit Union National Association (CUNA) was formed (www.cuna.org)

Credit Union Distinctives...

Credit unions are not-for-profit financial cooperatives. They exist solely to meet the needs of their members, not to make a profit.
Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to members in the form of lower loan rates, higher interest on deposits, and lower fees.
Each credit union is owned and governed by its members. The membership elects generally unpaid, volunteer officers and directors who establish the policies under which the credit union operates. Board members must be elected and other officials must be chosen from within the credit union's membership.
In addition to traditional financial services, credit unions provide financial education for members, assisting them to become more informed consumers regarding their finances.
Like commercial banks, credit unions are also highly regulated businesses, insured by and under the jurisdiction of the National Credit Union Administration and state regulators.

Credit Union Membership...

Credit unions attract members from all walks of life and socioeconomic levels.
To join a credit union, a person usually must be within its field of membership. Typical fields of membership include employee groups, associations, religious or fraternal affiliations and geographic areas.
Each member has an equal voice in the operations of the credit union regardless of the amount of savings or loans he or she has with the credit union.

What is a CU? How is it different from a bank?

Credit Unions vs. Banks

Credit unions and banks exist to provide financial services. Their similarities end there and the differences that make credit unions unique begin to show.

Credit Unions	ï¿½	Banks
Credit unions have members, not customers. Everyone with an account has a share of ownership in the credit union. Therefore, you are actually an owner of your credit union and not just another account number.	ï¿½	Banks have owners, usually a group of investors. Banks exist to make a profit for their owners.
Credit unions are democracies. They are run by a volunteer board of directors elected from the membership. Every member has a vote in how their credit union is operated.	ï¿½	Banks are run by their investors, who have the sole voice in how things are done.
Credit unions are not-for-profit organizations. After expenses are paid and reserves set aside, all money surpluses are returned to the members in the form of higher dividends and lower loan interest rates.	ï¿½	At banks, only investors see a share of the profits.
Credit unions serve only certain groups of members, like those working for a particular employer or living in the same neighborhood. This specialization allows credit unions to focus on the needs of a certain special group of people.	ï¿½	Anyone may open an account at any bank. Customers sometimes become lost in the shuffle or "just another number."