WHAT IS A CREDIT UNION?

A credit union is a co-operative financial institution, which is owned and controlled by its members. Credit unions are non-profit, and exist to provide a safe, convenient place for members to save money and obtain loans and other financial services at competitive rates. Members of a credit union share a common bond, such as their occupation, where they live or even attend church.

• Credit unions have fewer options than traditional banks, but offer clients access to better rates and more ATM locations because they are not publicly traded and only need to make enough money to continue daily operations.

• However, credit unions have considerably fewer locations than most banks, which can be a drawback for clients who like in-person service.

• Credit unions are exempt from paying corporate income tax on their earnings.

Credit Unions vs. Banks

Credit unions are significantly smaller in size than most banks and are structured to serve a particular region, industry, or group. However, just because most credit unions have fewer branches does not mean they cannot have a reach similar to that of big banks. While credit unions still must make enough to cover their operations, the absence of the need to generate profits generally allows for lower fees and account minimums, higher rates on savings, and lower borrowing rates for their members and owners.

On October 15th each year is celebrated as International Credit Union Day. This is recognized worldwide and to many, it is more a day festivities, reflections, and recognition for the credit unions but to acknowledged the credit union movement’s history, promote its achievements, and share member expe-riences. As history as it, International Credit Union Day has been celebrated on the third Thursday, in Oc-tober since 1948.

The celebrated day, is to raise awareness about the incredible work that credit unions and other financial cooperatives are doing around the world while getting their members engaged.

This year’s theme is “Inspiring hope for a global community.”