When it comes to managing your money, you have choices. While many people default to big-name banks, there’s another option that often provides better rates, lower fees, and a more personalized experience – credit unions.
If you’ve ever wondered what makes credit unions different from traditional banks, you’re not alone. While they offer many of the same services – like checking accounts, auto loans, and mobile apps – the core mission of credit unions set them apart. We’ll break down the basics of how credit unions work and why it may be the perfect financial home for you.
People Over Profits
The fundamental difference between a credit union and a bank is the ownership structure. Banks are for-profit corporations owned by shareholders. Their primary goal is to generate a profit to pay those shareholders. Credit Unions are not-for-profit financial cooperatives owned by their members (the people who bank there) and managed by a volunteer board of directors elected by the membership.
When you open an account at a credit union, you aren’t a customer; you’re a member and partial owner. Any “profit” a credit union makes is returned to its members in the form of:
- Lower interest rates on loans and mortgages
- Higher dividends on savings accounts and certificates
- Lower fees
Community Focused Banking
Credit unions are typically built around a “field of membership.” This could be based on where you live, where you work, or organizations you belong to. Because they’re deeply rooted in their communities, credit unions focus on local impact. Your deposits are used to help your neighbors buy their first homes and start small businesses.
Membership
It’s not hard to join a credit union. In fact, becoming a member is usually pretty simple. Common ways to qualify for membership include:
- Location: you live, work, go to school, or worship in a specific county or city
- Employment: you work for a specific company or within a certain industry
- Relatives: a family member or someone in your household is already a member
- Associations: you belong to a specific union, homeowners association, or non-profit organization
Here’s the best part. Even if you change jobs, move to a different state, or retire, you can keep your accounts open and continue to enjoy the same great rates and benefits as long as you keep your account in good standing. An additional perk of many credit unions around the United States (including Wheatland) is their participation in Shared Branching. This cooperative agreement enables members of participating credit unions to process basic transactions like deposits and withdrawals at another institution within the network of thousands of nationwide locations. Learn more about shared branching and how Wheatland participates here.
Community Involvement
Members often have shared interests and appreciate participating in an institution designed to help other members.
Credit unions may provide financial education and outreach, in-school credit union branches [link to Youth Accounts page with HHS branch info], and small business support. They’re often involved in fundraisers and sponsor local teams to support the people who live and work in their community.
Ready to Experience the Difference?
Whether you’re looking to start fresh with a new checking account or you’re a long-time member with a question, we’re here to help you navigate your financial journey. At Wheatland FCU we pride ourselves on getting to know our members by name.
New to the Family?
Wondering if you qualify? Most people in our community do! Opening an account is easy and gives you immediate access to all our member benefits. Check out our membership requirements before you Schedule an Appointment to open your account.
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