When looking for a place to accumulate ones savings there are a plethora of options available. Many people think that the only place you can save your money is a bank but they are wrong. There are many alternate ways to accumulate funds safely and credit unions are one of them. The assumption that credit unions are just like banks is simply untrue.

The difference is that with a credit union the people who have accounts there are the ones who own the company. With a bank the owners are not tied into the needs of the customers in any but an abstract sense. This can cause a feeling of coldness and distance from ones own needs, sort of like Scrooges in glasses counting your money and sneering at you behind Plexiglas windows...

Credit unions are not like that at all. Since you are part of the ownership it empowers you when making requests such as loans and many other areas. In my eyes all credit unions do is simply make transparent just how vital the customers are to any bank!

Without customers there would be no banks, yet many banks seem to act as if they are funded by God himself. A credit union strips away the veneer of superiority.

Another difference is that banks are interested in making a profit whereas credit unions are not. This means that credit unions always have your best interest in mind simply because in essence they are you! Who would you trust more, your family or a complete stranger? Exactly.

These organizations are regulated just like any bank. Instead of being insured by the FDIC they are insured by the National Credit Union Administration. They can insure deposits up to one hundred thousand dollars.

This movement started in Canada at the turn of the 20th century. Their efforts were wildly successful and influenced an American named Pierre Jay who helped organize hearings on the matter in Massachusetts. This led to the passage of the first state credit union act in 1909 and the industry has been growing ever since.

I think credit unions are a great way to save your money without worrying about being gouged by stockholders who want a better return on their investment. In this case the account holder becomes the investor and to me it feels like the most natural thing in the world.

Learn more about this author, Royce Radcliffe.
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