FAQs


What’s a Credit Union?
A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.

Infographic: Learn more about the credit union difference

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Who owns a credit union?
Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investment. A credit union doesn’t operate in that manner. Rather, each credit union member owns one “share” of the organization. The user of credit union services is also an owner, and is even entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.
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How did credit unions start?
The first credit union cooperatives started in Germany over a century ago. Today, credit unions are found everywhere in the world. The credit union movement started in this country in Manchester, New Hampshire. There, the St. Mary’s Cooperative Credit Association, a church-affiliated credit union, opened its doors in 1909. Today, one in every three Americans is a credit union member.
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What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.

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Are savings deposits insured?
Yes. All savings accounts are federally insured up to $250,000 and all Individual Retirement Accounts are separately insured to $250,000 by the NCUA, the National Credit Union Administration, a U.S. Government agency. That means your savings are backed by the full faith and credit of the United States Government. As well, all deposits are privately insured for an additional $250,000.
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Who can join a credit union?
Membership in St. Louis Community Credit Union is open to anyone who lives, works, worships or attends school in St. Louis City and St. Louis County in Missouri, or St. Clair, Madison, Monroe or Jersey Counties in Illinois.

Membership is also open to relatives of existing St. Louis Community members – including your spouse and children, parents, brothers and sisters, grandparents and grandchildren, aunts and uncles, nieces and nephews, first cousins and legal guardians, as well as step, in-law and legally adoptive relationships.

Once you join, you can enjoy the benefits of Credit Union membership for as long as you maintain an active account … even if you change jobs, switch careers or move your residence.
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