Of the people, by the people, for the people
What makes a credit union different from a bank? A credit union is a not-for-profit institution operating with members' best interests in mind, not operating for the benefit of stockholders.
Focused on You
A credit union is a cooperative financial institution, owned and controlled by the people who use its services - its members. Credit unions serve groups that share a common bond - such as where they work, live, or go to church - and provide a safe, convenient place for members to save money and get loans at reasonable rates.
Credit unions, like other financial institutions, are closely regulated while operating in a prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 6,000 federal and state-chartered credit unions nationwide with deposits insured up to $250,000.
Credit Union History
The credit union idea is a simple one: People should be able to pool their money and make loans to each other. It's an idea that evolved from cooperative activities in 19th century Europe and extended to Canada in the 20th century. Canada's successful efforts influenced some Americans who helped create the first U.S. credit union in Massachusetts in 1909.
In 1935, when credit unions were helping Americans through the Great Depression, the treasurer of a Midwestern credit union said that credit unions were "not for profit, not for charity, but for service," and that philosophy holds true today.
- Voluntary Membership
Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination.
Many cooperatives, such as credit unions, operate as not-for-profit institutions with a volunteer board of directors. In the case of credit unions, members are drawn from defined fields of membership. - Democratic Member Control
Cooperatives are democratic organizations owned and controlled by their members - one member one vote, with equal opportunity for participation in setting policies and making decisions. - Members' Economic Participation
Members are the owners. As such, they contribute to, and democratically control, the capital. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested.
For credit unions, which typically offer better rates, lower fees and superior service than for-profit financial institutions, members recognize benefits in proportion to the extent of their financial transactions and general usage. - Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If the cooperative enters into agreements with other organizations or raises capital from external sources, it does so based on terms that ensure democratic control by the
member while maintaining cooperative autonomy. - Education, Training and Information
Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative.
Credit unions place particular importance on educational opportunities for their volunteer directors, and financial education for their members and the public, especially the nation's youth. Credit unions also recognize the importance of ensuring the general public and policymakers are informed about the nature, structure and benefits of cooperatives. - Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national and international structures. - Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members.
These seven principles are founded in the philosophy of cooperation and its central values of equality, equity and mutual self-help. They express, around the world, the principles of human development and the brotherhood of man through people working together to achieve a better life for themselves and their community.
Copyright © 2006 - Credit Union National Association, Inc.
Need Help? Start Here!
Banks are for-profit companies that exist to generate high levels of profit for their stockholders. Bank stockholders elect a paid board of directors to run the bank and benefit stockholders, not the bank’s depositors. On the other hand, credit unions are not-for-profit organizations founded on the belief that individuals sharing common bonds can benefit from a cooperative financial effort. Credit unions are member-owned and exist to serve and educate their members, who are their depositors, and to promote thrift. The members elect an unpaid board of directors to run their credit union for the financial benefit of all members who are the depositors and borrowers. Learn more about the Credit Union Difference.
No. While members clearly benefit from the affordable financial services, money management education and personalized service that credit unions provide, companies also gain by offering a credit union benefit to their employees. This increases a company's marketability and helps employees gain access to financial services that they might have been unable to obtain elsewhere. In the end, credit unions benefit all consumers — members and non-members alike. Credit unions provide the economic benefits of capital investment and help local capital pools serve local communities. Credit unions also benefit all consumers by continuing to provide rate competition and an overall choice for financial services in the marketplace.
Membership in Sheridan Community Federal CU is open to anyone who lives, works, worships or attends school in Sheridan.
If you qualify for membership, please contact us.
We have been members for over a decade. They always take the best care of and for us. We highly recommend them.