Profit to the People!

Here's why you get a better deal at the Credit Union.
A better deal financially...
A better deal in personal service...

Credit unions and banks both exist to provide financial services.
However, their similarities end there.

What's The Diff?
Credit Unions	Banks
St. Cloud Federal Credit Union is not a bank. We offer banking services, but the Credit Union is a not-for-profit financial cooperative.	Banks are for-profit businesses. Making a profit is necessary for Credit Unions, too. The difference comes in the way those profits are used.
The Credit Union is not owned by investors. It is owned by its members. It is a "financial cooperative" consisting of individuals with a common affiliation. In our the case, that affiliation is geographic. Everyone who lives, works, or worships in Stearns, Benton, or Sherburne counties can be our member. It also includes the extended families of members, no matter where the family members may live. Government regulations determine who can join a particular Credit Union.	Banks are owned by private or public investors. To them, a bank is a way to make a return on their investment. Also, banks have no restrictions on where their customers live or work; however, for practical puposes, most community-based banks operate within their respective communities. On the other hand, the large money center and interstate banks (Citigroup, Bank of America, JP Morgan-Chase, TCF, US Bank, Wells Fargo, and others) can operate anywhere in the USA or possibly anywhere in the world.
The Credit Union profits stay in the Credit Union, to help keep fees and loan rates lower, and savings rates higher. Our emphasis is, and always has been, on superior Member Service. Profit to the People.	They have no "home town" loyalties. Their profits, for the most part, do not stay in the communities where they do business. Profit to the Investors.
As in the banking industry, Credit Unions are governed by a board of directors. Members of a Credit Union's board and various oversight committees are local Volunteers who are also members of the Credit Union. They receive no compensation for their service and commitment. At the Credit Union, since we don't have stockholders, our mission is to keep our members happy.	Banks are for-profit institutions run by officers and directors who are legally bound to make decisions in the best interest of the stockholders. Banks have to keep their stockholders happy. Banks are run by officers and directors chosen by owners, stockholders and bank holding companies, many of whom are located out-of-state, especially in the case of money center and interstate banks. Directors of banks customarily receive director fees, per diem, stock options and other perks.

 

© St. Cloud Federal Credit Union
(320) 252.2634 or 1.888.252.2634
3030 First Street South, St. Cloud MN 56301
1716 Pine Cone Road South, Sartell MN 56377