Credit Union Federal Information

Credit Union Federal Organizations

Credit unions are always non-profit organizations offering financial services to people. A credit union works much like a bank with a few notable differences. The most obvious difference between banks and credit unions are that banks are open to make a profit and credit unions operate as non-profit organizations. People like credit unions because they can usually offer members better rates for loans and higher interest on savings accounts. Although, there are more banks by far than credit unions. As of last year there were a little over 7,000 federally insured institutions and a bit over 90 million account holders. Find out what makes credit union federal organizations different and are they insured?

 

 

 

What Credit Unions Offer

Originally some of the first credit unions were devised to help out communities. By pooling resources and organizing it was possible to help neighbors build a new house or start a new library. Today, credit unions are still focused on helping their neighbors to get the loans they need and offer better rates and perks to members.

In order to become a member of a credit union, an individual must be part of the local community, work for a recognized company within the credit union such as a utility company or be a member of an approved association.

Features

The size of each credit union federal branch helps to determine just what services are offered to members. Smaller sized credit unions have fewer services in general just because of their size. They usually offer members a minimum of loans and savings accounts. Larger credit union federal organizations can offer full-service banking. These services could include ATM services, loans, credit cards, savings options and a variety of checking accounts.

Credit union federal branches are monitored by the NCUA (National Credit Union Administration). This is an independent federal agency within the United States which charters and supervises federal credit unions. The majority of NCUA insured institutions will be either state chartered or federal credit unions with some savings banks. Just like banks where accounts are insured through the FDIC, credit unions have their own form of insurance. Credit union federal branches are normally insured through NCUSIF (National Credit Union Share Insurance Fund).

The types of accounts which are federally insured by the NCUSIF include Revocable Trust Accounts, Individual Retirement Accounts, share certificates, money market accounts, checking and savings. Each credit union federal account is insured by the NCUSIF for $250,000. If you wish to keep more than this amount and make sure it is federally insured, you could simply open additional accounts.

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