What Is a Federal Credit Union and Are You Missing Out?
Published: December 14, 2018
Credit unions, to many individuals, are an unknown. Unless your parents were part of one or your business associations encouraged them, you may not see them as a readily viable option for your financial needs. However, a federal credit union is a key opportunity that offers profit sharing, low-interest loans, and all of the modern banking features you could find anywhere else. Santa Clara County Federal Credit Union is a federal credit union.
So, What Is It?
A federal credit union will use the NCUA symbol on their website and within their company information. These organizations are regulated by the National Credit Union Association, which is a U.S. federal government agency. The National Credit Union Association provides chartering of these organizations. Each organization must meet very specific guidelines. The process is much like that which is used by national banks, which are managed through a chartering process under the Office of the Comptroller of the Currency, another federal agency.
What Does This Mean to You?
From a safety standpoint, federal credit unions are just as secure as national banks. The organizations set up their own membership criteria for those who wish to use them. A key difference, though, is the way you, as a customer, are treated. In a credit union, individuals who are a part of the organization are members, not customers as they are in a national bank. That’s because credit unions can establish profit sharing with their members, allowing you to benefit when the organization sees profits from some of its investments.
What Can Credit Unions Do for You?
Here are a few important things you should know about them:
- Credit unions are accessible to most people, depending on their membership structure.
- They offer the same types of bank accounts, savings vehicles, and investments as national banks.
- They offer a more localized feel – those within these organizations get to know you and often base credit lending decisions on more than just your credit score.
- Borrowing costs tend to be lower due to lower fees within the organization.
- Many offer supportive services to meet each one of your needs.
Could this be the ideal option for you? It should be. To learn more about Santa Clara County Federal Credit Union, click here. Allow our team to help you with all of your financial needs.