The Credit Union Difference

It’s important to understand how credit unions are different from banks, and why we remain a necessary and extremely popular financial alternative for many Americans. Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, not-for-profit organizations managed by a volunteer board of directors, and because they have the specified mission of meeting the credit and savings needs of consumers.

Ownership

Credit unions are an economic democracy. Each credit union primary member has equal ownership and one vote, regardless of how much money a member has in deposits or how many accounts they have. At a credit union, every person is equal and both a member and an owner.

Volunteer Boards

Each credit union is governed by a voluntary board of directors, not stockholders. The board of directors are elected by and from the credit union’s membership. You can view the currently elected board of directors on our Contact Us page.

Membership Eligibility

Credit unions cannot serve the general public. People qualify for a credit union membership through their employer, county they live in, friends or family members, organizational affiliations like churches or social groups, or community-chartered.

Social Purpose

People Helping People. Credit unions exist to help people, not focusing on profits. Our goal is to serve all of our members well, every member counts. Our members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes.

Products & Services

Credit Unions offer similar or the same type of products as banks, such as: home purchase loans, Home Equity loans, auto loans, RVs, motorcycles, checking, savings, kids accounts, and so much more. People choose to become a member at a credit union because they can offer lower rates on loans, and higher rates on deposit accounts.

What’s the difference between Credit Unions & Banks?

CREDIT UNION	BANK
At credit unions, depositors are called members. Each member is an owner of the credit union.	Banks depositors are called customers. Customers have no ownership in the financial institution, the financial institutions are owned by investors.
Since credit union members are owners, each member, regardless of how many accounts they have or how much money they have on deposit, has one vote in electing board members. Members can also run for election to the board.	Banks are owned and controlled by stockholders, whose number of votes depend upon number of shares owned. Customers don't have voting rights, cannot be elected to the board, and have no say in how their bank is operated. Directors are selected by current directors or by large block stock acquisition.
Credit unions board members are volunteers who reflect the diversity of the membership.	Banks board members are paid, and do not necessarily reflect the diversity of their customer base.
Credit unions are local and are organized to serve the interests of its membership.	Banks are open to the general public.
Credit unions are not-for-profit financial cooperatives whose earnings are paid back to members in the form of higher savings rates and lower loan rates.	Banks are all for-profit corporations with declared earnings paid to stockholders only.
Credit unions focus on consumer loans, as well as services needed by the membership.	Banks focus on commercial loans and account services that generate significant income.

©2025 Members First Credit Union, All rights reserved.
Routing Number: #314978394
Federally Insured by NCUA | Equal Housing Lender
Your savings federally insured to at least $250,000
and backed by the full faith and credit of the United States Government.
National Credit Union Administration, a U.S. Government Agency.
CU Website Developed & Hosted By CUWebsite™ Services