Your Voice is Heard

At St.Cloud Federal Credit Union, we value the voice of our Members and ensure they are empowered.  As a cooperative financial institution, all Members of our credit union are also owners.  When a person joins our credit union, they become one of the owners and shareholders of our institution.

As mentioned in a previous blog, one thing that differentiates credit unions is that we are “not-for-profit” – there is no private ownership.  We are member-owned and all our profits stay in the credit union, our local community, and aid in the benefit of our valued Members.   The democratic nature of our credit union allows all our Members to have an equal voice in the operation of the organization, regardless of the amount each person has in their account.  Credit union Members participate by voting in mail-in elections for the credit union's Board.

Our credit union is governed by our local, volunteer Board of Directors.  Now is the perfect time for all our Members to exercise their ownership and have a say in how their credit union is run!  Ballots for the candidates for our Board of Directors were recently mailed out.  Please take time to look them over, fill them out, and get them back to us by March 16, 2013.  Please join us on Thursday, March 21^st for our Annual Meeting at our St. Cloud office at 3030 First Street South, in the lower level Community Room – cookies will be served, and election results will be announced!   The Business Meeting starts at 5:30 pm.

Our mission is to engage in a relentless effort to provide superior service to our Members.  We aim to educate, support, and encourage our members to be financially fit.
We are People Helping People.

   

More than Meets the Eye: The Difference Between Banks and Credit Unions

At their most basic aspects, banks and credit unions appear to be very similar.  At both institutions you can cash a check, drive up to a window and speak with a Teller, and inquire about things like loans or mortgages. Credit unions and banks both provide financial services.   However, when you look beneath the surface you’ll find that banks and credit unions are quite different.

First and foremost, banks are for-profit businesses.  At St. Cloud Federal Credit Union, we offer banking services, but are a not-for-profit financial cooperative.

Any profit generated by the credit union is returned to its members.  This can help keep fees and loan rates lower, and savings rates higher.  Our emphasis is, and always has been, on superior Member Service.  A bank’s profit goes back to its investors, not customers.  At a bank, you’re a customer, at a credit union you’re part owner, and a Member of our institution.

Banks are owned by private or public investors. To these investors, a bank is a way to make a return on their investment.  St. Cloud Federal Credit Union (like other Credit Unions) is owned by its Members.  We are a “financial cooperative” that consists of individuals with a common affiliation.  In our case, that affiliation is geographic.

Banks are run by officers and directors (chosen by bank owners), who are legally bound to make decisions in the interest of the stockholders.  Many of these officers and directors are located out-of-state and customarily receive director fees, per diem, stock options, and other perks.  Similar to the banking industry, credit unions are governed by a board of directors.  This board consists of oversight committees and volunteers who are Members elected by other Members.  Because our board of directors are not stockholders, they receive no compensation for their commitment and service.  Because we don’t have stockholders, our mission and goal is to satisfy and keep Members happy.

When choosing a financial institution, the most important aspect to consider is your individual needs.  If being part of a cooperative effort appeals to you, joining a credit union may be what you’re looking for; not just for the exceptional Member service and rates, but for the community aspect – We are People Helping People.