Credit Union

Credit unions are financial institutions that have a different purpose than other lenders. They are very much like the banks that have been our chief place of financial business, however, they offer a different type of service to their customers. They are "owned" by the customers who invest in it much like the bank shareholders. The customers are union clients, who use their services by taking out loans. Obviously, this is a different way of doing business, with more focus on the customers than a few high management officers and major stockholders. 

So how does it work? Members pool their funds to make loans to one another. The volunteer board that runs each lender is elected by the members. "Not for profit, not for charity, but for service" is the credit union motto. They serve groups that share something in common, such as the workplace, a type of industry, area in which the work is located, or even a religious organization. These companies are not-for-profit firms that exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. Many times, they only deal with a select group of consumers, such as those who serve military members, the employees of a large business, or the people who live in one certain state. But the law places some limits on the people they may serve. A charter defines the company's "field of membership," which could be an employer, church, school, or community. Anyone working for an employer that sponsors one of these businesses, for example, is eligible to join. 

Like other financial institutions, credit unions are closely regulated. The National Credit Union Share Insurance Fund (NCUSIF), an agency of the federal government, insures deposits at more than 9,000 federal and state-chartered groups nationwide. For savings accounts, deposits are insured up to $100,000, just like the FDIC who insures federally insured banks. The key difference, however, is the ownership. A credit union differs from a bank or savings & loan in that, while these other financial institutions accept deposits and make loans, the banks and S&L's 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.

We could reasonably compare credit unions with the early Church: "and all that believed were together, and had all things in common; and sold their possessions and goods, and parted them to all men, as every man had need. And they, ...with one accord...did eat their meat with gladness and singleness of heart" (Acts 2:44-46). Perhaps a credit union is the more biblical means of being good stewards of our money.