The CU Difference
As a not-for-profit institution, you as a member and partial credit union owner are at the center of everything we do. Rather than pocket profits, they're returned to you in the form of higher rates on deposits, lower rates on loans, and convenient, budget-friendly account management tools. When excess profits exist at year-end, a bonus dividend is declared and deposited into members' accounts.
In addition, all AFFCU deposits are insured by the strongest insurance fund backed by the federal government (NCUSIF - National Credit Union Share Insurance Fund).
Credit Unions and banks offer the same types of consumer products and services, but that is the only similarity between them. Here are the differences:
|Profits go to stockholders so decisions are based on what is best for stockholders.||Operate not for profit, not for charity, but for service so decisions are based on what is best for members.|
|As a commercial business, services are offered to make a profit.||As a cooperative, members pool their savings to provide low-cost loans and low-fee services to each other.|
|Owned by stockholders that purchase shares of bank stock.||Each member is an equal owner of the credit union.|
|Serves the general public.||Serves only the members that have joined.|
|Board of Directors are not necessarily owners and are paid a salary.||Board of Directors are unpaid volunteer members.|
|Stockholders, not the customers, elect the Board.||Members elect fellow members for the board.|
|Income is returned to the stockholders, not the customers, in the form of higher dividends on stocks.||Income is returned to the members in the form of higher savings rates, lower loan rates, and lower or no fees for services.|
|As a for-profit business, banks pay government taxes.||As a non-profit organization, credit unions are exempt from paying government taxes.|
|Deposits are federally insured by the FDIC.||Deposits are federally insured by the NCUSIF, the healthiest federal deposit insurance fund.|