What is a credit union?
A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to its members. It is member-owned and governed by a volunteer board of directors elected by the membership. The board may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.
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What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.
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Who can join a credit union?
A credit union exists to serve a specific group of people called a "field of membership." The Credit Union Advantage field of membership includes the employees, retirees and immediate family members of the St. John and Providence Hospital network. Membership is also open to groups within a 25-mile radius of a Credit Union Advantage location. (See membership page for further detail.)
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Who owns a credit union?
You, the member, own the Credit Union. Each Credit Union Advantage member, regardless of how much money they have on deposit, owns one share of Credit Union Advantage and is entitled to vote on important issues, such as the election of our volunteer board of directors.
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Are my Credit Union savings deposits insured?
Yes. All your Credit Union Advantage savings accounts are insured for at leat $250,000.00 per account and an additional $250,000.00 by the NCUA, the National Credit Union Administration, an agency of the federal government.
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