The Credit Union Movement

A credit union is a member-owned, not-forprofit cooperative financial institution. What exactly does that mean? It means that Texas Federal Credit Union is owned by the people it serves, called "members". Unlike banks, credit unions exist to serve their members, not to enrich an outside group of stockholders. Also, by being a member of a credit union, each and every member has an equal vote in all elections. Members are individuals that are employed by or are members of organizations or companies that are listed on the Texas Federal Credit Union Federal Charter. Those in the field of membership specified in a credit union charter, pool their savings, lend money to one another, and own the organization where they save, borrow and obtain related financial services. Credit unions respond to the financial needs of their members quickly and creatively because the members are the credit union.

The credit union movement is unique. Since it began in the United States nearly 100 years ago, credit unions have grown from small savings and lending societies to full-fledged financial institutions offering a wide variety of services. At the heart of this growth is the underlying cooperative philosophy with its emphasis on democratic control, financial equity, and mutual self-help (People Helping People).

Since there are no absentee shareholders to earn dividends from our earnings, and because the credit union is managed primarily by volunteers from among the membership (i.e. the board of directors and supervisory committee), labor and overhead costs are kept low. As a result, credit unions usually pay higher dividends on shares/savings and charge lower interest rates on loans.

All federally chartered credit unions are insured by the National Credit Union Administration (NCUA), an agency of the federal government. It provides insurance on member accounts up to at least $100,000.00 per member.

Credit unions are now an established part of the financial community. With the advent of new services, credit unions are increasingly considered full-service financial institutions.

Members have a positive image of credit unions, particularly their loan and savings rates/yields, fee structures, staff friendliness, and concern for members' financial well-being. The Texas Federal Credit Union Promise: Not for Profit, Not for Charity, But for Service.