WHAT IS A CREDIT UNION?
Credit Unions vs. Banks
What really is the difference?
Banks and Credit Unions are the same in that they are both operate under federal or state charters. Their deposits, up to $250,000, are insured by one of two federal agencies: the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Both are subject to periodic regulatory and federal insurance examination.
They are different in that Credit Unions, such as ours, are established to promote the financial well-being of their members, from those people of modest means to those of significant wealth, through a system that is cooperative, member-owned, volunteer directed and not-for-profit.
Banks are for-profit institutions looking to make a profit for their share-holders; their boards of directors are compensated. Credit unions are not-for profit, their income is reinvested in its’ members thru dividends and services. Boards are volunteer and elected from among the members. With that philosophy, credit unions can offer higher interest rates on deposits and lower rates on loans.
Holyoke Community Federal Credit Union’s philosophy of “People Helping People” is seen through our pledge of good customer service, our commitment to our members’ financial growth through low rates on loans, low fees and high interest rates on deposits. HCFCU has a federal charter and deposits are insured through the NCUA.