Credit unions offer similar financial products as banks, but they are structured differently to offer unique advantages. Each member owns one share of the credit union, no matter how much money he or she has on deposit. Each member has one vote in electing the volunteer board of directors. Credit unions are led by volunteers that are elected by and from membership.
Board members serve without compensation.
They are responsible for running the credit union in the best interest of the members. Because they are not profit driven, credit unions are able to offer better rates, lower fees and better service. Chartering a new credit union for a particular group is more challenging than adding your group to the field of membership of an existing credit union. A new charter takes almost 18 months to recruit a leadership team, survey the potential membership group, complete chartering documents and obtain a new charter. The size of the potential group also plays an important deciding factor in the feasibility of the charter.