Municipal Credit Union

A credit union is a nonprofit, member owned, money making cooperative whose members can borrow from pooled deposits at low interest rates. This is so important to communities for several reasons. Firstly, credit unions are much more personal to a community rather than stockholders or a corporate owned bank. Credit unions also provide lower interest rates for people whom may not be in the best situations. Lastly, a credit union helps a community grow bigger, better, and stronger.

The organization selected for analysis and evaluation is American Lake Credit Union. This organization is composed of two main branches, both located in Tacoma, Washington. In contrast to banks, Credit Unions are smaller organizations and are directed by members who are selected via a vote to serve in an all-volunteer board of directors for the organization (Scott, and Johnston, p.2, 2011). Specifically, this credit union was founded in 1948 and has grown since then. (C. Fitzer, personal communication April 7, 2014). For instance, although the organization is small in size through a partnership with a credit union network, it is able to provide general financial services at diverse locations

1. Visit the website of a large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. EXAMPLE: Some large banks you might consider include Bank of America®, JPMorgan Chase®, Wells Fargo®, Citibank®, and U.S. Bank®.

In conclusion, the credit union of the future will best serve its members by offering low interest rates, friendly service, and a chance to have a say in decisions. Credit unions are superior to banks in most aspects, and they are nonprofit, which is beneficial to the

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

commercial banks Thrift Institution are depository institution, banks basically that offer savings and loan they are mutual savings banks and credit unions.

I have chosen to open a checking account with Hudson Valley Federal Credit Union. This bank is for any person living in the Hudson Valley in New York State. Therefore, there are no special requirements besides geography that determine eligibility for this credit union. I also looked at Bank of America and Wells Fargo. After reviewing all the options for different accounts and the pros and cons of each bank, I believe Hudson Valley Federal Credit Union is the right bank for me.

To address the risk associated with business account kiting schemes, credit unions should perform a risk assessment by evaluating the business member’s creditworthiness before approving a checking account. The idea is to offer checking accounts to business members who are least likely to abuse the account, which could result in large losses to the credit

Unlike conventional banking systems, credit unions are non-profit and focus on community and member needs. They offer higher interest rates on savings accounts and lower interest rates on loans and mortgages. Although their organizational structure is tax-exempt, they still

In contrast to banks, which are usually owned by shareholders, credit unions are owned by the members of that credit union. Because shareholders do not own them, credit unions do not have to implement large fees to make a profit, much like banks often do. Whereas banks mainly focus on profit, credit unions are non-profit; therefore, it is the members of the credit union who make money off of investments. This allows credit unions to place higher value on customer service and satisfaction than on making a profit. Consequently, credit union loans can offer lower interest rates on loans, credit cards with lower annual percentage rates, and lower fees than banks can.

A credit union is a not-for-profit, cooperative financial institution that is owned and controlled by its members. Credit unions serve people that share something in common such as an employer or place of worship. Credit unions allow members to pool their savings, lend to one another, and have a voice in the governance in the organization. This aspect of credit unions is particularly appealing given the increasing alienation many consumers are feeling from mega banks.

The National Federation of Community Development Credit Unions helps low- and moderate-income individuals achieve financial independence by assisting credit unions that serve under-banked communities. The Federation’s members provide financial services to over 4 million customers and hold $32.5 billion in assets. The Federation’s members are classified as “community development credit unions” (CDCUs) – a particular type of financial institution which aims to assist economically vulnerable individuals in establishing financial security for themselves, their families and their neighborhoods. With an emphasis on mission, stewardship and personal interactions, these organizations have served as important lifelines in the

Banks take deposits from savers and pay interest on these accounts. They receive interest on loans when they pass these funds on to borrowers. The spread between the rate they pay for funds and the rate they receive from borrowers is where their profits are derived from. This practice of combining deposits from many sources which can be lent to many borrowers forms a interchange of funds

Simply putting, banks accept deposits from public; keep some of those deposits with them and lend the rest to businesses and individuals. Businesses and individuals in turn pay interest on

What are some considerations in choosing a financial institution? Which one do you think would be the most important consideration for you in choosing a financial institution?