Cabrillo Credit Union : What is a Credit Union


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A Bank And A Credit Union - What Is The Difference?

Ownership
Did you know that you’re not just a member, you’re an owner at a credit union? People who have not been exposed to the financial services of a credit union might not know what they are, or might think that there are very few differences between credit unions and banks. Both are financial institutions offering a wide range of financial products and services. However, that's where the similarities end. Major differences can be found in the deposit and loan rates, the financial service fees, and the quality of services. Also, members are shareholders and, therefore, owners. We call it, "The Credit Union Difference”.

Better for You and Your Wallet
Almost always, credit unions are the better alternative for the consumer. According to Bankrate.com (as of July 2005), the average bank interest rate for a $30,000 Home Equity Line of Credit (HELOC) is 6.30%. The current average credit union rate is 5.35%. The average 1-year CD rate at a bank is 2.48%, and the average credit union rate is 3.34%. The important thing to remember is that a lower loan rate or a higher investment rate means more money in your wallet.

Furthermore, year after year, credit unions consistently outshine other financial institutions in the area of consumer/member satisfaction.

Ownership
A bank’s leadership is comprised of their largest shareholders. On the other hand, credit unions exist solely to serve their members (who are part owners in the credit union) and benefits are usually returned to them in the form of lower loan rates and higher deposit rates.

Many credit unions in the San Diego area are full-service financial institutions providing one-stop services to meet all of the member's financial needs.

Serving you!
Another difference between credit unions and banks is volunteers. The boards of directors of credit unions are volunteers, as are the supervisory committee members that oversee the activities of the credit union with respect to risk management. This isn’t the case at banks.

One million San Diegans have benefited from their credit unions – so why don’t you?
Credit Unions are for everyone. Consumers must qualify for credit union membership. At Cabrillo, Sharp & Carlsbad Credit Unions, you qualify for membership by either living/working in San Diego, or by being a member of the federal government in Imperial County. Family members of eligible members may also join!

Credit unions are here to serve their members and are committed to the overall credit union philosophy of "People Helping People." Experience the value of credit union membership and join now!

Credit Union Dictionary
We know the terms we use might not be familiar to everyone. Here’s a general list of words and acronyms used in the credit union industry:

Member – At the heart of the credit union system – the reason credit unions exist. This person holds one credit union share and has the right to vote for the board of directors. (Must be at least 16 years of age to vote).
NCUA - National Credit Union Administration - an agency of the Federal Government that insures each member's account up to $100,000. (If you’re familiar with FDIC-Federal Deposit Insurance Corporation- this is the credit union’s version of deposit insurance.)
ASI – American Share Insurance – the nation’s largest private provider of deposit insurance for credit unions.Cabrillo, Carlsbad City and Sharp Credit Union members have an additional $250,000 in insurance as an added benefit.(This is in addition to the NCUA insurance.)
Share - A credit union term for a savings account. This account must have a $5 minimum balance to own a share in the credit union and partake in membership benefits.
Share Certificate - A credit union term for what is commonly known as a certificate of deposit (CD), time deposit, or term account with other financial institutions.
Share Draft - A credit union term for a draft (check). A Share Draft account is a checking account.

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