Why is a Credit Union Different?

YOUR credit union differs from banks in some fundamental ways. Here are some other ways YOUR credit union differs, and terms that you hear:

Share Account: Your Savings Account at the credit union is called a "Share Account." That's because you are a "shareholder", making you an owner in the credit union.

Dividend: The interest paid on your savings account is called a "dividend."

Share Draft Account: Technically, your checking account is called a "Share Draft Account." That's because what you are really doing is writing a "draft" against your shares with the credit union.

Volunteer Board of Directors: Most financial institutions have a Board of Directors. What makes your credit union different is that these board members, all of whom belong to the credit union, volunteer their time.

Not-for-Profit: Any profit earned from borrowing funds or investments is returned to you in the forms of dividends, lower fees and reduced loan rates. Because credit unions are organized to help members, not for the specific purpose of making money, they are described as not-for-profit.