We're only allowed to accept people in one of our employee groups or members of their families. They're nonprofit organizations. And they don't pay federal taxes. That allows them to offer higher interest rates on deposits and lower rates on loans. In 1934, with the nation beginning to turn the tide on the Great Depression, the Federal Credit Union Act was passed to regulate the institutions and provide insurance for their deposits.
Most credit unions have long since outgrown their original function.
Take Green River Area Federal Credit Union, for instance. It began as a service for workers at Green River Steel. The steel mill was shut down indefinitely in January. We now have about 47 different payroll groups. While other credit unions are scrambling to offer Internet and telephone banking services, Green River Area is sticking to the basics.