Relevancy is apparent when considering credit unions’ benefit to consumers
In response to a recent letter to the editor from a local banker, there are more than a few reasons that support the relevancy of credit unions. If every teacher, waitress, firefighter, everyday consumer joined a credit union, they could save, on average, more than $100 per household annually. They would also be offered financial counseling and other financial aid and education programs at no cost.
All credit union members receive these benefits because of the way credit unions operate – as not-for-profit entities that return any earnings to their members in the form of lower rates, fewer fees and free programs that help benefit the communities they live in. Credit unions are granted tax-exemption by law because of their not-for-profit, cooperative business model. All savings from this exemption are passed on to members, who are the taxpaying owners of their credit unions.
Credit unions’ not-for-profit model benefits all consumers in that it helps to keep the financial marketplace in check. Imagine how high banking rates and fees could climb if turning a profit, rather than serving consumers, became the bottom line?
Chuck Albrecht
President/CEO of Mid-Minnesota Federal Credit Union
