When you’re a member of OCTFCU, you’re not just a customer but part-owner of your credit union. Member assets are pooled to provide loans and other financial services to fellow members.
Credit unions are not-for-profit, which means that instead of dividends going to shareholders, the profits are put back into the credit union to bring members lower fees and better rates.
Why Credit Unions Are Different
Members Own the Credit Union
A credit union is a democratic, member-owned cooperative. So when you join a credit union, you’re more than a member; you’re an owner—and that means you have a say in how your credit union is run.
A volunteer board of directors, elected by the members, governs a credit union. With their vote, each member has a direct impact on the direction of the credit union. As part of the democratic process, each credit union holds an annual election where members select candidates for the Board of Directors. This is very different from a bank, where stockholders vote according to the number of shares of stock they own.
Credit Unions are Not-for-Profit
Credit unions provide the same products and services as other financial institutions—but credit unions are not-for-profit and exist to help people, not to make a profit. As such, all earnings are returned to their members in the form of high-interest savings and low rate loans.
This also enables credit unions to operate at a lower cost than many for-profit institutions, and helps them to offer competitive loan and savings rates to their members.
Credit unions follow conservative investment practices and lend responsibly and live within their financial means, so you can trust your credit union's decisions.
Credit Unions Put People First
Credit unions live by the philosophy of "People Helping People.”
Credit unions across the country are committed to their communities, offering financial services to underserved populations, engaging youth in financial education, and returning profits to their members.