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Ocean Communities Federal Credit Union
Credit Unions - A Friendly Alternative To High-Street Finance
Credit Unions are not for profit institutions. Edward Filene, a department store tycoon is hailed as the father of credit unions in the United States. A credit union is a non-profit financial organization that is owned and regulated by its members through a representative electoral board of directors nominated from the membership itself.
Irrespective of how much you have in savings you are only entitled to one vote at the AGM of a Credit Union. A smart consumer can keep more money in their pocket by using a credit union versus a bank. The profit made by a credit union is distributed among its members in the form of interest or dividend.
Whether you have a poor credit rating or not you can still become a member of a credit union and save as little or as much as you like. Like all institutions the credit union needs to make a profit in order to pay staff wages, heat and light, mortgages, and so forth. It's easy enough to find a credit union, if you are willing to look.
Interest payments for some loans from credit unions are tax deductible. Paying into a credit union is also easy and can be done at local shops, convenient collection points, or can even be taken directly from your salary. In other words, you get higher interest rates on basic savings (share) accounts, interest-bearing checking accounts and CDs. If so, you may want to add these items to your comparison chart as well. Credit Unions Offer Plenty of Financial Services
If you are looking for something a little less involved there are several other options.
When looking for finance, it is normally good practice to shop around the various resources available to get the best deal on personal loans. Overall, credit unions offer an easy and convenient way to save and borrow and can provide a focal point for a community by bringing people together, to both help each other and to help the community as a whole. Compare the advantages and disadvantages of getting a car loan from a lender and a credit union.
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