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Background
Credit Unions were created in 1933 as an alternative financial option to traditional banks. Developed on the principle of "people helping people", credit unions offer all of the same products and services as traditional banks while never compromising their dedication to customer service and cultivating member loyalty.
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Why Choose a CU
A bank's leadership is comprised of their largest shareholders. Credit unions are owned by their customers/members. Credit unions exist solely to serve their customers/members who are part owners in the credit union and benefits are usually returned to them in the form of lower loan rates and higher deposit rates.
Many credit unions in the San Diego area are full-service financial institutions providing one-stop services to meet all of the members financial needs.
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Leadership
Another difference between credit unions and banks is volunteers. The boards of directors of credit unions are volunteers, as are the supervisory committee members that oversee the activities of the credit union with respect to risk management. This isn't the case at banks, where board members are paid, often quite handsomely.
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Better for you and Your Wallet
Almost always, credit unions are the better alternative for the consumer. Traditionally, credit unions have lower rates on loans and higher rates on savings. A lower loan rate or a higher investment rate means more money in your wallet. In addition, credit unions consistently, year after year, outshine other financial institutions in the area of consumer/member satisfaction.
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One million San Diegans have benefited from their credit unions-so why don't you?
Credit unions are here to serve their members and are committed to the overall credit union philosophy of "People Helping People." Experience the value of credit union membership and join now!
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Credit Union Dictionary - Terms Explained
Here's a general list of words and acronyms used in the credit union industry:
- Member - A consumer of the credit union is called a member. A consumer of the credit union's products and services. They are called a member, because they actually own a share in the credit union.
- NCUA - National Credit Union Administration - an agency of the federal government that insures each member's account up to $250,000. (If you're familiar with FDIC-Federal Deposit Insurance Corporation- this is the credit union's version of deposit insurance.)
- ASI - American Share Insurance - the nation's largest private provider of deposit insurance for credit unions. Cabrillo members have an additional $250,000 in insurance as an added benefit. (This is in addition to the NCUA insurance.)
- Share - A credit union term for a savings account. At Cabrillo this account must have a $5 minimum balance to own a share in the credit union and partake in membership benefits.
- Share Certificate - A credit union term for what is commonly known as a certificate of deposit (CD), time deposit, or term account with other financial institutions.
- Share Draft - A credit union term for a draft (check). At Cabrillo, a Share Draft account is a checking account.
What Is A Credit Union?
