The Credit Union Difference

What is a Credit Union?

A Credit union is a non-profit cooperative financial institution that is owned by the people who use its services. One of the main differences between a credit union and a bank is that credit unions were founded on the principle of helping fellow members. To a credit union, you are a member, not just an account holder.

What are the Differences and Advantages of a Credit Union?

Non-profit vs For-profit

Banks are focused on making profits. Banks are privately owned and publicly traded which means they are required to pay their investors and stockholders. They often have more fees and lower return rates for their customers.

Credit Unions are non-profits. They do not have to worry about making money for shareholders. It is a credit union’s mission to provide its members with the best terms it can afford. They return their profits to their members in the form of lower rates, fewer fees, and higher yields on savings.

Better Rates and lower fees

Credit unions are focused on providing great services for their members. Because they don’t have to pay profits to shareholders as banks do, credit unions often can pass that money back to their members, by offering higher returns on savings accounts, Share certificates, and lower loan rates.

Great Customer Service

Credit unions are smaller and committed to serving their members, not investors, they tend to provide better and more personalized attention. From educating members on financial matters to providing tailored services to meet their needs, it is a credit union’s mission to help their members live their best financial lives.

Not only are credit unions great but FECA members receive additional benefits! See how FECA benefits

National Network of Branches

Many banks, especially the large national ones, have branches and ATMs in every state. Credit unions have joined together to create a national network allowing almost any credit union member the ability to walk into any credit union in the network to conduct transactions. This Shared Branch Network consists of 85,000 ATMs & 5,000 branches. Click Here

Community

One of the major reasons people prefer credit unions is the sense of community that comes with it. Credit Unions are committed to bringing value to their members, their families, and their communities. We do this through financial education, volunteering, donations, and sponsorships. Click to see FECA’s Community involvement.

Different names

While the products may be similar, they may have different names to remind members that they are the owners. What is commonly known as a “checking account” is known as “Share Draft checking” at a credit union. The same goes for Share Certificates instead of Certificated of Deposits (CDs). Credit union members receive earnings on their money as dividends instead of interest. The term “share” represents the money deposited by all members as part of their ownership.

Insured Deposits

Banks insure their deposited funds with Federal Deposit Insurance Corporation (FDIC). Credit union funds are protected by National Credit Union Administration (NCUA).

Membership Eligibility

Since credit unions are owned by their members, they have eligibility requirements that must be met to join. In the case of the FedEx Employees Credit Association, members must be FedEx employees, FedEx retirees, family members of FedEx employees, or live in the same household as a FedEx employee.

Not Only are Credit Unions Great
but FECA Members Receive Additional Benefits!

No Annual Fees Low Interest Rates Rewards for Everyday Use Security from Fraud