Happy International Credit Union Day from Minnesota Credit Union Network
ST. PAUL, MN (October 15, 2015) — Thursday, October 15, credit unions around the world unite behind the message of “People Helping People®” for International Credit Union (ICU) Day. Doing good is something credit unions take seriously, locally and globally. This cooperative spirit of people helping people has led to life-changing opportunities in the form of small business start-ups, homeownership and education.
Credit unions are member-owned, not-for-profit financial cooperatives that provide savings, credit and other financial services to their members. Credit unions pool their members’ savings deposits and shares to finance their own loan portfolios rather than rely on outside capital. Members benefit from higher returns on savings, lower rates on loans and fewer fees on average.
How Credit Unions are Different than Banks?
- Safe and Secure – Credit union member deposits are secured up to $250,000 and insured by the National Credit Union Administration (NCUA). The NCUA offers the same level of insurance to credit union members that the FDIC offers to bank customers.
- Stable – Since 2008, Minnesota banks have had more than 20 failures while Minnesota credit unions had just one.
- Taxation– Credit unions do pay taxes, but unlike banks, credit unions are exempt from state and federal income taxes because they are member-owned and democratically operated.
- Member Owned – Credit unions are not-for-profit financial institutions that exist to provide exemplary service to consumers – which they call members – because a credit union’s customers actually OWN the institution where they bank.
- Values – Credit unions believe that access to high quality, low-cost financial services is critical to the financial health and stability of ordinary Minnesotans.
- Members – Unlike banks, 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 and higher interest on deposits, as well as lower and fewer fees.
- Savings – Minnesota credit union members save approximately $111 million a year by using a credit union rather than a bank. These savings works out to about $72 per member and $138 per household.
- Elected Boards – Each credit union is governed by a board of directors, elected by and from the credit union’s membership.
- Competition – It is the top priority for credit unions to improve services for members, not to increase profits for stockholders. When credit unions provide exceptional service to members, they raise the bar for other financial institutions, ultimately benefiting all consumers.
- Community – Credit unions work to provide communities the services and resources they need. Through involvement in Toys for Tots, Habitat for Humanity and countless other community organizations, credit unions actively demonstrate what it means to be a good corporate citizen.
- Underserved – Credit unions actively reach out to underserved areas and provide essential financial services.
- Financial Literacy – credit union volunteers provided nearly 400 financial education classroom presentations in the 2014/2015 school-year, reaching over 7,000 Minnesota students with information about credit, budgeting, savings, and more. In addition, there are currently eight Student credit union branches in Minnesota schools, providing students real world, hands on learning experiences in both money management and career development.
About Minnesota Credit Union Network
The Minnesota Credit Union Network is the statewide trade association that works to ensure the success, growth, and vitality of Minnesota credit unions. With over $39 billion in assets, Minnesota credit unions are local, trusted financial cooperatives that serve over 2.1 million members at 404 branch locations, employing 5,841 people around the state. For more information, visit mncun.org.
