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WHAT IS A CREDIT UNION?
Credit unions are owned by their members - the people who save and borrow with them - and provide a full range of banking products and services. Credit unions are financial institutions, but we are not banks. While we meet the same regulatory standards as the biggest banks, we are 'authorised deposit taking institutions' and are regulated under the Banking Act, Corporations Act and the Australian Prudential Regulatory Authority. There are many reasons why credit unions are different to other financial institutions, but the main difference is that you become a member when you join. Every member is a shareholder, with an equal say in how the credit union is run.
We're not answerable to financial shareholders, so we don't squeeze profits out of our members to provide large share dividends. Once the expenses of a credit union are met, any additional income is returned to members in the form of extra benefits such as:
Independent financial service research group CANSTAR CANNEX measured the annual ‘return’ (which may be likened to a dividend) provided to members through banking with us compared to the major banks. In 2008-09 the result was a total annual value per member of $151.80 which equates to an annual dividend of $24 million returned to our members in the form of better rates on loans, deposits, access and fees and charges.
Thinking about joining a credit union? Read more about why you should join us and how to become a member. |
