Benefits of a Credit Union
Members are generally given better than average dividends, compounded quarterly on savings, and competitively low interest rates are charged on loans. Since there are no outside stockholders to pay, all earnings after operating costs and reserves, are paid to the members in dividends. In addition to a regular share account, the credit union offers a Christmas club account that pays dividends quarterly.
How Does a Federal Credit Union Operate?
The credit union is chartered under the Federal Credit Union Act. This regulates saving, borrowing and makes sure the credit union is carefully managed.
The Board of Directors is elected by the membership and chooses its officers: President, Vice-president, Treasurer and Secretary.
The Credit Committee, appointed by the Board of Directors, decides on the loans that will be made, the Supervisory Committee, appointed by the Board, makes sure that the credit union is operating properly.
The Board of Directors and Committee are members who serve as volunteers. Their primary function is to serve the members. Only the members of the credit union may deposit money in or borrow from the credit union.
How Is A Credit Union Regulated?
Federal Credit Unions are members of a nationwide system established years ago by the Congress of the United States. The Judicial and Justice Federal Credit Union is chartered and supervised by the National Credit Union Administration (NCUA), an agency of the United States Government. All members savings are federally insured by the NCUA for up to $250,000.00