Frequently Asked Questions

What’s a credit union?
Who owns a credit union?
How did credit unions start?
What is the purpose of a credit union?
Are savings deposits insured?
Who can join a credit union?

What’s a credit union?
A credit union is a not-for-profit financial cooperative, owned and operated by its members. A board of directors, elected by the member, serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: you are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit you, not to make a profit.
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Who owns a credit union?
The members! While most financial institutions are owned by stockholders, a credit union is owned and operated by its members. There are no stockholders to pay, so we pass the savings on to you in the form of higher dividend rates on deposit accounts and lower rates on loans. Plus, as an owner of the credit union, you are entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.
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How did credit unions start?
The first credit union cooperatives started in Germany over a century ago. Today, credit unions are found everywhere in the world. The credit union movement started in this country in Manchester, New Hampshire. There, the St. Mary's Cooperative Credit Association, a church-affiliated credit union, opened its doors in 1909. Today, one in every three Americans is a credit union member.
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What is the purpose of a credit union?
The primary purpose of a credit union is to help you save! Another purpose is to offer loans to members. Rather than paying profits to stockholders, credit unions return earnings to members in the form of higher savings rates, lower rates on loans, and improved services.
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Are savings deposits insured?
Yes. You can take comfort knowing your deposits are insured up to a combined $100,000 by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. In addition, Individual Retirement Accounts (IRAs) are insured separately up to $250,000 by the NCUA.
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Who can join a credit union?
A credit union exists to serve a specific group of people, such as a group of employees or the members of a professional or religious group. This is called a "field of membership." The field of membership may include where they live, where they work, or their membership in a social or economic group. At JCECU, we have served government employees and their families for generations.
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