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About Credit Unions

A credit union is a not for profit financial institution owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they live, work, or go to church. These groups make up a credit union's field of membership.

Credit unions exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. Like other financial institutions, credit unions are closely regulated. And they operate in a very prudent manner. The National Credit Union Share Insurance Fund administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 10,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $100,000.

What makes a credit union different from a bank or savings & loan?

Like credit unions, these financial institutions accept deposits and make loans—but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments.

What services do credit unions offer

Credit unions all offer savings accounts, usually called "share accounts." Other services vary and are tailored to meet the needs and interests of the individual credit union’s members. This is one place where member voting comes in: as a member, you get to say what’s important to you.

Credit unions generally offer basic services, but with a twist. Look for:

• Low-cost or free checking with low or no minimum balance
• High interest rates on savings accounts, certificates of deposit, and money market accounts
• Low interest rates on home mortgages and auto loans
• Credit cards with low or no annual fees and low interest rates
• Inexpensive money orders and cashier’s checks Many credit unions also offer:
• Online banking
• Direct deposits, and cable and wire deposits
• Tax preparation services
• Brokerage services
• Traveler’s checks
• Group insurance
• Notary services
• Small-business loans

How do I join a credit union?

Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union's charter defines its "field of membership," which could be an employer, church, school, one or multiple communities.

Thanks to a modernized Michigan Credit Union Act, more and more credit unions are broadening their fields of membership.

There’s a credit union out there that’s perfect for you. Here’s how to find it and join:

Use the online Michigan credit union finder.

Poll your family. Does your spouse's employer sponsor a credit union? Most credit unions allow credit union members' families to join. Each credit union, however, may define "family" differently. At some credit unions, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles, and aunts.

Ask your boss. Your company may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to your credit union.

Quiz the neighbors. Some credit unions have a "community" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.

Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union's field of membership. If not, at least you'll know what number to call to ask about membership eligibility.