The Credit Union Difference
About Credit Unions
Choosing a credit union over a bank is one of the smartest financial decisions one can make. On average, credit unions are able to offer better rates and lower fees than any bank. This is because all credit union profits are passed directly back to their members. What that means for a member of Boulder Valley CU is higher rates on savings and certificates and much lower rates on loans! In addition to that immediate impact to your personal financial bottom line, there are many other benefits to doing your banking with a credit union.
Video: Why You Should Join A Credit Union
Credit unions are not-for-profit financial cooperatives. We exist to serve our members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.
Credit unions do pay taxes - payroll taxes, sales taxes, and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998 in H.R. 1151, the Credit Union Membership Access Act, which states: "Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means."
Credit unions are economic democracy. Each credit union member has equal ownership and one vote -- regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner.
Each credit union is governed by a board of directors, elected by and from the credit union's membership. Board members serve voluntarily, without pay.
By current federal statute, credit unions cannot serve the general public. People qualify for a credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.
Financial Education for Members
Credit unions assist members to become better-educated consumers of financial services. A national study shows that just ten hours of personal finance education can positively affect students' spending and savings habits for a lifetime.
People Helping People. Credit unions exist to help people, not make a profit. Our goal is to serve all of our members well, including those of modest means - every member counts. Our members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes - just ask us.
Your Savings is Insured
The money you place in your credit union account is federally insured up to $250,000 by the National Credit Union Administration (NCUA), the strongest government insurance fund in the country.