![]() Or visit one of four branches in your area and we’ll help get you started.Ĭheck out the graphic below. Membership at Encompass Credit Union is open to anyone who lives, works, attends school, or worships in Tipton, Clinton, or Howard County, Indiana, or has a family member that meets that criteria.Īll you need to do is maintain a $5.00 balance in a share savings account, then you’re eligible for all of the following products and services:Ĭontact us to find out how to become a member. Who can become a member of Encompass Credit Union? It’s part of being a financial cooperative. Meanwhile, anybody can become a bank customer. Membership groups: If you belong to a local place of worship, labor union, school, etc., you qualify to join certain credit unions Job: Select employers sponsor many local credit unions Location: If you live, work, or go to school in the same area as your local credit union, you qualify to become a member (some credit unions include worship in their field of membership)įamily: If you are related to a current member, you qualify to join your local credit union Most credit union fields of membership are based on the following: You have to belong to your local community, or field of membership, to join. It sets policies, oversees operations, and looks after the credit union and its members.Ĭredit union membership is community-basedĬredit unions like us are financial cooperatives. They can hire and fire the President/CEO.Ī volunteer unpaid governing body elected from amongst the membership by the very members they serve. Board members are appointed by bank investors and are often rewarded for maximizing proft. credit unions fund their own insurance, costing taxpayers and members NOTHING.Ī paid governing body that oversees banking operations. The NCUA never uses tax money to cover its losses. In fact, billions of tax dollars have been used by the FDIC since its inception. The FDIC uses tax money to cover bank losses. Up to $250,000 per account by the NCUA, a federal agency enacted in 1934 to regulate & insure credit unions. Up to $250,000 per account by the FDIC, a federal agency enacted in 1933 to regulate & insure banks. That's actually the recognized credit union creed. Banks have led in yearly profits for years, sharing the top spots with the oil industry. Private investors, share holders, and stock holders, none of whom are necessarily customers of the bank.Īll members with funds deposited at the credit Union, and who actively use the credit union’s services. Our savings cycle example illustrates how credit union members benefit from borrowing money from one another. The credit union motto is “People Helping People,” and it’s no wonder. Members complete the cycle by receiving lower interest rates and higher savings rates The credit union returns the profits made on loan interest to its members The credit union loans the money to other members Members deposit money into their savings accounts Think of the way credit unions operate in a savings cycle: Shares don’t determine how much voting power you have at a credit union, either. It all starts with the fact that credit unions are owned by their members, aka, you!Ĭredit unions’ board of directors are all volunteers and members. What is a credit union?Ĭredit unions run in a way that benefits their members directly. The more shares you own, the more votes you get.īank board members are paid and act independently of bank customers, who have no say in the decision-making. Shareholders control the decision-making at banks. Dividends are payments you receive for saving or investing your money.Īs a member and a shareholder at Encompass Credit Union, you receive dividends on any accounts that earn interest. It’s simple: any profits made by a bank are used to pay out dividends to shareholders and savings account holders. You might be asking yourself what this means if you currently have an account at a bank. Banks loan that same money to people and businesses, collecting a profit off the interest. They accept cash deposits from their customers. What is a bank?īanks are for-profit businesses. ![]() Next time you won’t mistake the two for one another. ![]() But let’s discuss the important differences in the way credit unions and banks go about their business. ![]() Who actually owns banks and credit unions?Ĭredit unions and banks are both designed to help you open accounts, save money, and take out loans. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |