What is the Credit Union Difference?

Click here to view some humorous, but factual, comparisons of a bank and a credit union.

  • Joining. A credit union is a financial cooperative organized by people who have a common bond. This could be citizens of a specific community, city or county, employees of a company, etc. It used to be that you couldn't join a credit union unless you worked somewhere specific, but now many credit unions, including TruWest, are community-based, which means membership is open to people living within certain geographic areas.

  • Not-for-profit. Credit unions are not-for-profit financial cooperatives. We exist to serve our members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits and lower fees.

  • Taxation. Credit unions do pay taxes - payroll taxes, sales taxes, and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998.

  • Ownership. Credit unions are economic democracy. Each credit union member has equal ownership and one vote -- regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner.

  • Volunteer Boards. Each credit union is governed by a board of directors, elected by and from the credit union's membership. Board members serve voluntarily.

  • Financial Education for Members. Credit unions assist members to become better- educated consumers of financial services. Additionally, the Credit Union National Association (CUNA) partners with the National Endowment for Financial Education, a not-for-profit foundation, to expand financial education among high school students. A national study shows that just ten hours of personal finance education can positively affect students' spending and savings habits for a lifetime. Part of this partnership includes individual credit unions donating time and resources to visit local schools and teach students about a variety of financial education topics.

  • Social Purpose: People Helping People. Credit unions exist to help people, not make a profit. Our goal is to serve our entire membership well, including those of modest means - every member counts. Our members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes - just ask us.

Join TruWest today!