Move Your Money Philly!
 
 

Big banks are national for-profit corporations owned by private investors and governed by a paid board of directors chosen by the stockholders.  They make decisions without consulting – and sometimes without even notifying – their customers.  Bank of America hiking its rates are just one example. 


In contrast, credit unions are not-for-profit financial cooperatives owned by their members.  Members vote on their board of directors.  Often credit unions have a common bond among the members, such as belonging to the same organization or living in the same geographical area.


Credit unions accept deposits from their members and use them to make short-term loans. Deposits are regarded as purchases of shares, and all earnings of the credit union are paid out as dividends to members.


Is it safe?

Credit unions with the word "federal" as part of their name are regulated by the National Credit Union Administration (NCUA), a U.S. government agency, and are federally insured by the National Credit Union Share Insurance Fund (NCUSIF). This fund is maintained by premiums paid by federal credit unions.


Because credit unions have a historically low failure rate, the NCUSIF, according to a Treasury study, is one of the most secure federal insurance programs in existence today.


Is it like my old bank?

Yes, except your money stays locally, not in some obscure derivatives markets.


All credit unions offer basic banking services: checking and savings accounts, consumer loans, etc.  Most credit unions offer a full range of services, including: online banking, debit cards, credit cards, mortgages, foreign currencies, etc.  If you have advanced needs, contact your local credit unions to learn what they offer.

 

At the end of the day, banking with a truly local bank is better than a corporate-level bank, but credit unions will have more of a positive impact on you and your local community.

Credit Unions are Local, Have Community Roots