SDFCU : Membership: Benefits of Membership

What is a Credit Union?
A credit union is a cooperative, not-for-profit, financial institution, owned and operated by its members to meet their financial needs. Credit Unions serve members who share a common bond such as employment, education, social interest, location, or religion. A credit union does three things:

Encourages and helps members save regularly to achieve their financial goals
Lets members borrow funds at fair rates
Helps members use their money wisely by providing financial services and education at low or no cost

A credit union is owned and operated by its members. Everyone in a defined field of membership is eligible to join a credit union. The members elect a volunteer Board of Directors from their membership to provide strategic guidance and work with the management staff to meet the goals of the organization. A Supervisory Committee is also made up of members to audit financial operations and ensure safety of members' funds.

Credit Unions vs. Banks
What are the key differences between Credit Unions and Banks?

Credit Unions	Banks
Can serve only those individuals within their field of membership	Can serve anyone in the general public
Are member service-driven	Are profit-driven
Return profits to members in the form of lower loan rates, higher savings rates and free or low cost services	Return profits to a small group of stockholders
Have members, each of whom has a share of ownership, in SDFCU is $1	Have customers with no ownership in the organization
Democratically controlled by members	Controlled by stockholders and paid officials
Are not-for-profit institutions	Are profit-oriented institutions
Members elect a volunteer Board of Directors to represent their interests	Have a paid Board of Directors who represent the owners; customers do not have voting privileges
Are federally insured by the National Credit Union Administration	Are federally insured by the Federal Deposit Insurance Corporation

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