//A Look Inside a Credit Union
A credit union is a not-for-profit financial institution owned by its “members.” Why is this a big deal? Compare this with banks where people are just customers. The primary goal of a bank is to make money for shareholders, which explains the high fees and high loan rates. A credit union is different. They are the only democratically controlled financial institutions in the United States.
Here’s what the typical credit union looks like:
- Members are the owners of the credit union, and vote for the Board of Directors and the Supervisory Committee. Members can run for any of these positions.
- The Board of Directors is made up of unpaid members who volunteer their time and talent to provide direction, as well as guidance, to the president or CEO.
- The Supervisory Committee serves as a means of checks and balances. This volunteer committee examines and audits the affairs of the credit union.
- Credit Union Staff handle the day-to-day operations and are overseen by a credit union president or CEO. Additional staff may include managers, loan officers, marketing professionals, accounting specialists, and member service representatives.
Back to THE DIFFERENCE
Elements of Money is a financial information and content resource for teens provided by BALANCE. SRP Federal Credit Union does not provide, and is not responsible for, the products, services, overall website content, security, or privacy policies on this site. These services are offered as a member convenience only and your participation is strictly voluntary. Mobile carrier message and data rates may apply. SRP cannot guarantee and does not represent that your credit score or any other personal financial goals will improve by use of these services. Teens accounts at SRP Federal Credit Union are for ages 13 through 17 and require joint ownership of the minor’s parent or legal guardian over the age of 18. Membership eligibility requirements apply. Please visit a branch location or www.srpfcu.org for more information. SRP Federal Credit Union is federally insured by NCUA.
