What are credit unions
Credit unions are financial cooperatives that are owned and operated by its members. It functions similarly to a bank, providing a wide range of financial services, including savings accounts, loans, credit cards, and other financial products. However, credit unions differ from banks in that they are not-for-profit organizations, meaning their primary goal is to serve their members rather than maximize profits.
Here are some reasons why joining a credit union can be important:
1. Member Ownership:
As a credit union member, you are also an owner. This means you have a say in the institution’s operations and the election of its board of directors. They operate with the best interests of their members in mind since they are not driven by shareholder profits. To become a member of RG Sacco click on www.rg.co.ke
2. Customer Focused Service:
Credit unions prioritize providing personalized and member-centric service. They typically have a reputation for being more approachable and willing to work with members who may have unique financial needs or challenges.
3. Competitive Rates and Fees:
They often offer competitive interest rates on savings accounts and loans, as well as lower fees compared to traditional banks. This can result in cost savings for members and potentially better returns on investments.
4. Community Support:
Credit unions are deeply rooted in their communities and often support local initiatives and organizations. By joining a credit union, you contribute to the overall economic well-being of your community and help support local businesses and projects.
5. Access to Services:
They also provide a wide range of financial services similar to banks, including checking accounts, loans, mortgages, credit cards, and investment options. By joining a credit union, you gain access to these services while enjoying the benefits of a member-focused institution.
6. Cooperative principles:
They operate based on cooperative principles, including voluntary membership, democratic control’ member participation’ education and training, and cooperation among cooperatives. These principles foster a sense of community, shared responsibility, and mutual assistance.
It’s important to note that credit unions may have membership eligibility requirements, such as belonging to a particular community, profession, or organization. However, many credit unions have broadened their membership criteria to be more inclusive, allowing more individuals to join. The most importance of credit unions lies in the ability to provide affordable and accessible financial services.