At a credit union, you are not a customer. You are a member-owner.
Credit unions and banks are not the same— and the difference is built into the core of our business model.
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What's the Difference?
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Credit unions are not-for-profit cooperative financial institutions owned by their members instead of stockholders. Because credit unions are not-for-profit, they return their earnings to members in the form of more competitive rates, lower and fewer fees, and improved services (Wisconsin Credit Union League).
Credit Unions |
Banks |
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Not-for-Profit Profits are reinvested into the credit union |
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For-Profit Profits are paid to outside shareholders |
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Member-Owned Every member gets one vote |
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Shareholder-Owned Voting rights are determined by shares owned |
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Democratically-elected Board of Directors |
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Shareholder-elected Board of Directors |
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Purpose-Driven Expected to make decisions to benefit members |
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Profit-Driven Expected to maximize profits for shareholders |
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NCUA Share Insurance Deposits are federally-insured by the NCUA up to $250,000 |
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FDIC Deposit Insurance Deposits are federally-insured by the FDIC up to $250,000 |
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The 8 Cooperative Principles for Credit Unions
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As a not-for-profit financial cooperative, FCCU is governed by the seven cooperative principles adopted by the International Cooperative Alliance and the eighth principle added by America's Credit Unions (formerly CUNA) and National Credit Union Foundation in 2019.
Voluntary & Open Membership
Cooperatives are formed by people looking for solutions to shared problems. They are open to all who use or provide their services and are willing to accept the responsibilities of membership.
Democratic Member Control
Cooperatives are controlled by those who use or provide the co-op's goods and services. Each member gets one vote to help make the organization's policies and decisions.
Member Economic Participation
Members equally "buy in" and democratically control the cooperative's capital based on the amount of business they conduct rather than the dollars they invest.
Autonomy & Independence
Cooperatives are independent, self-help organizations. If a co-op enters into an outside agreement or raises external capital, it still retains autonomy and democratic control.
Education, Training, & Information
Cooperatives train their members, directors, and employees so they can best contribute to the co-op's development. They also educate the general public about cooperatives.
Cooperation Among Cooperatives
Cooperatives work together through strong local, national, regional, and international structures to most effectively serve their members.
Concern for Community
Cooperatives focus on local development through policies and programs directed by their members.
Diversity, Equity, & Inclusion
Cooperatives recognize that they have a responsibility to take a leadership role in building and serving more diverse, equitable and inclusive communities.
The Wisconsin Credit Union League
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