The TFCU Difference
Your Ownership
TFCU: Credit union depositors are called members, and the members have 100% ownership of their credit union.
Banks: Banks’ depositors are called customers and have 0% ownership in their financial institution.
Fewer Fees
TFCU: Credit unions are not-for-profit financial cooperatives. Earnings are returned to members in the form of higher savings rates, lower loan rates and fewer fees.
Banks: Banks are for-profit corporations, and earnings are paid to stockholders.
Your Vote Counts
TFCU: In credit unions, each member, irrespective of how much money he/she has on deposit, has one vote in electing board members. Members can also run for election to the board.
Banks: In banks, directors are selected to the board by other directors or by large stock purchase, and the number of votes they get depends on how much stock they own.
Elected Volunteers
TFCU: The board of directors is composed of elected, unpaid volunteers who reflect the diversity of the membership.
Banks: The board of directors is composed of paid stockholders who do not necessarily reflect the diversity of the customer base.
Putting You First
TFCU: Focus on consumer loans, member savings, along with services needed by the members.
Banks: Focus on commercial loans and accounts, along with services that generate income.
Cooperation for Convenience
TFCU: Credit unions cooperate with each other and share resources for members’ convenience and savings. The CO-OP Shared Branch network is one example.
Banks: Banks compete with each other and do not share resources.
No Bail Out
TFCU: Taxpayer funds have never been used to bail out a credit union.
Banks: Taxpayer funds were used in the “Savings & Loan” bailout in the 1980s, and in the “Great Recession” bailouts in 2008-2009.
