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August 11, 2012 | credit-union-advocacy

Credit Unions vs. Banks


How Do Credit Unions Differ from Banks?

Credit unions are member-owned cooperatives. That means any profits realized by credit unions are returned to their members (anyone who has an account with the credit union) in the form of lower interest rates on loans and better dividend rates on deposits.

The operating philosophy of credit unions is "not for profit, but for service." Before making any decision, a credit union like Amplify will ask, “Is this in the best interest of the members?” The sole reason credit unions exist is to serve their members, and they treat every member with the respect and consideration that implies.

Membership Eligibility

Every credit union’s charter outlines requirements for member eligibility. For example, at Amplify Credit Union, anyone who lives, works, worships or goes to school in Travis, Hays, Caldwell, Williamson or Bastrop counties, along with their family members are eligible to become a member. Other ways you can become an Amplify member are to join the Texas Consumer Council (TXCC) or the American Red Cross Central & South Texas Region.

To research more about credit unions, visit www.ncua.gov