Like a bank – but better!
We're often asked, "How is a credit union like a bank?" Our answer: "Well…both offer loans, accounts and other financial services." The question we prefer to answer is: "How are credit unions different from a bank?"
- Credit unions are owned by their members. There are no stockholders to satisfy and no outside investors making decisions about, or profiting from, your money.
- Every dollar of profit is reinvested back into the credit union to benefit its members - helping to lower interest rates on loans and increase interest rates on savings.
- As a member, you're helping your family, friends and neighbors buy their first car, obtain their first mortgage, start a new business, or save for important goals such as college or retirement.
- A credit union’s primary functions are to serve its members and to uphold the credit union motto, 'people helping people'.
The Credit Union Difference.
| Credit Unions | Banks |
|---|---|
| Members are owners. | Owned by shareholders. |
| Members serve on the board of directors. | Shareholders serve on the board of directors. |
| Board members are volunteers. | Board members are paid to serve. |
| Not-for-profit organizations. | For-profit organizations. |
| Earnings are returned to members in the form of higher savings rates, minimal fees and lower loan rates. |
Profits are paid to shareholders.
Typically have more fees and higher loan rates.
|
| Service driven. | Profit driven. |
| Decisions are made locally by people who live and work in the communities served. | Headquarters and decision makers could be located anywhere. |
| Deposits insured by NCUA up to $250,000. | Deposits insured by FDIC up to $250,000. |
Oxford Federal Credit Union is a full-service financial institution serving members in Androscoggin, Cumberland, Franklin, Kennebec, Knox, Lincoln, Oxford, Sagadahoc, Somerset and York counties in Maine.
