Why Should You Love Your Credit Union

Credit Unions vs. Banks. It's the age-old battle. Which is better? Of course, we all know the answer: Credit Unions! And while each of us may have differing opinions on what makes credit unions our top choice, here are three reasons why all members should feel great about choosing credit unions:

1. Banks have customers. Credit unions have members.

Banks can serve anyone in the general public, but their account owners have no interest in the institution. Banks are owned by investors who may or may not be account holders.

When you join a credit union, you become a member-owner. And, the most important responsibility of credit unions is promoting the financial success of their member-owners.

2. Banks are for profit. Credit unions are not-for-profit.

Banks are in business to generate profits for their stockholders. Only stockholders get a share of the profits.

Credit unions are in business to serve their members. If a credit union has excess earnings after reserve requirements are met, those earnings are used to offer the member lower interest on loans or higher interest on savings, to offset costs as to limit the need for fees, or to develop products and services for the membership. Excess funds can also be paid back to members as a dividend.

3. Banks are governed by their stockholders. Credit unions are democratically controlled.

At banks, only stockholders have voting privileges. Account holders don't have voting rights, cannot be elected to the board, and have no say whatsoever in how their bank is operated. Bank directors are paid, and they even may not be from the same community the bank is in and may not even use the bank's services.

At credit unions, each member has a say in how the institution is operated. A credit union is governed by a board of directors elected by and from the membership. Each qualifying member has one vote in electing board members. Members may also run for election on the board.

Speaking of board elections, in a few weeks, members will be receiving an invitation to participate in Connexus Credit Union's Board of Director's election which will be held online this year. We are very excited about this new process and encourage all members to exercise their right to vote!