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Dear Members,

Please be aware if you receive an email from vfcu@vfcu.net along with http://www.vfcu.net/ and verification@curesources.coop together please do not open email; delete it immediately. Valley Federal Credit Union will never send an email regarding conducting verification of members accounts. Thank you Valley Federal Credit Union.

Credit Over Banking

Credit Unions are a fast-growing force in the financial market, giving private banks a major reason to increase their business methods to customers. The US Government released a figure in April of 2012 showing that the number of Americans joining credit unions in the fourth quarter of 2011 reached 1.3 million. This is over double the amount of people who joined in 2010 overall, with that number being 600,000. Growing concerns over the financial market is the primary reason for these skyrocketing numbers.

What makes a credit union different from a bank?

The primary similarity between a credit union and a bank is the availability of checking/savings accounts, financial products, and specialized accounts. However, the main difference is the fact that a bank holds the money placed into it by a customer, while at a credit union, the customer (referred to as a member) buys a share of the union, making them a sharing owner with other members. Credit unions are not for-profit institutions like banks. This does not mean that credit unions do not make a profit. When a profit is made, it leads to better rates on loans and savings. The main drawback of a credit union is their scarcity, making it slightly more difficult to do business with one as opposed to a bank.

What are the benefits of a credit union?

The main benefit of a credit union is the fact that it is non-profit, which means that members are not used by the union to make a profit. These methods include ATM fees, for example. The fact that they are exempt from a federal tax also allows unions to use these added expenses to be put towards the union’s revenues. The unions themselves, however, do regulate their member’s activities. They prevent interest rates on a member’s checking or savings account from increasing by placing stricter guidelines on exceeding their rate.

Contact Us

If you would like more information about how a credit union works, contact our Valley Federal Credit Union main branch at (956) 456-3108. If you are interested in joining us, visit any of our locations and we can get you started on a brighter financial future.

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