FAQs about Credit Unions: What You Need to Know

If you’ve always banked with a traditional bank, you may not know what makes a credit union different. From competitive rates to personal service, credit unions offer plenty of reasons to consider making the switch.

Here are answers to some of the most common questions about credit unions.

What is a credit union?

A credit union is a not-for-profit, member-owned financial institution that offers many of the same services as a bank, including checking and savings accounts, loans, credit cards, and online banking.

The difference is that credit unions are built around their members—not outside shareholders. When you join, you become a member-owner.

What’s the difference between a credit union and a bank?

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Banks are generally owned by shareholders, while credit unions are owned by their members.

Because credit unions are member-owned and not-for-profit, they can focus on returning value to members through competitive rates, lower fees, personalized service, and community involvement.

At Mutual Savings Credit Union, our members come first.

Why are credit unions not-for-profit?

Not-for-profit doesn’t mean a credit union doesn’t run effectively. It means profits aren’t the primary purpose.

After maintaining financial strength, credit unions can return value to their members through competitive rates, lower fees, improved services, and investments in the community.

What types of loan products are offered at credit unions?

Credit unions offer a variety of lending options, including auto loans, personal loans, mortgages, home equity loans, and credit cards.

It’s always worth checking with a credit union before financing a major purchase. A competitive rate could save you money over the life of your loan.

What services do credit unions offer to members? 

Credit unions offer many of the services people use every day, including:

  • Checking and savings accounts
  • Debit and credit cards
  • Auto and personal loans
  • Mortgages and home equity loans
  • CDs
  • Online and mobile banking
  • Direct deposit
  • Bill pay

At MSCU, you can get the convenience of modern banking while still having access to personal, local service.

How will my funds be protected?

Federally insured credit unions have federal share insurance through the National Credit Union Administration (NCUA), subject to applicable limits.

You can have confidence knowing your eligible deposits are federally insured while enjoying the benefits of credit union membership.

Why do credit unions care about their communities?

Community is a big part of the credit union difference. “People helping people” is the credit union way.

Credit unions often support local organizations, schools, businesses, charities, and community events.

Why should I join a credit union?

If you’re looking for a financial institution that puts people before profits, a credit union may be a great fit.

At Mutual Savings Credit Union, we’re committed to providing competitive financial products, personal service, convenient technology, and support for the communities we call home.

Ready to experience the credit union difference?

Discover what membership at Mutual Savings Credit Union can offer you.