AA Credit Union Fees
- Thread starter Bob Owens
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eolesen
Veteran
- Jul 23, 2003
- 15,988
- 9,428
No, they are in the business to lose money. Seriously where do you come up with this stuff?
Josh
- Thread Starter
- #21
http://en.wikipedia.org/wiki/Credit_union
Generally speaking, credit unions see themselves as of "higher moral ground" than banks; they feel that they are "community-oriented", and "serve people, not profit".
[sup]In the credit union context, "not-for-profit" should not be confused with "non-profit" charities or similar organizations.[sup][21][/sup] Credit unions are "not-for-profit" because they operate to serve their members rather than to maximize profits.[sup][22][/sup][sup][23][/sup][sup][24][/sup] But unlike non-profit organizations, credit unions do not rely on donations, and are financial institutions that must turn what is, in economic terms, a small profit (i.e. "surplus") to be able to continue to serve their members.[sup][25][/sup][sup][26][/sup] According to the World Council of Credit Unions (WOCCU), a credit union's revenues (from loans and investments) need to exceed its operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency[sup][27][/sup] and "credit unions use excess earnings to offer members more affordable loans, a higher return on savings, lower fees or new products and services".[sup][citation needed][/sup][/sup]
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
Credit unions are definitionally non-profit. They DO NOT exist to make a profit in the same sense as commercial banks.
http://www.cuna.org/gov_affairs/legislative/cu_difference.html
http://www.cuna.org/gov_affairs/legislative/cu_difference.html
- Not-for-profit. Credit unions are not-for-profit financial cooperatives. We exist to serve our members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.
- Taxation. Credit unions do pay taxes - payroll taxes, sales taxes, and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998 in H.R. 1151, the Credit Union Membership Access Act, which states:
Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for- profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means."
- Ownership. Credit unions are economic democracy. Each credit union member has equal ownership and one vote -- regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner.
- Volunteer Boards. Each credit union is governed by a board of directors, elected by and from the credit union's membership. Board members serve voluntarily.
- Membership Eligibility. By current federal statute, credit unions cannot serve the general public. People qualify for a credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.
- Financial Education for Members. Credit unions assist members to become better- educated consumers of financial services. Additionally, CUNA is partnering with the National Endowment for Financial Education, a not-for-profit foundation, to expand financial education among high school students. A national study shows that just ten hours of personal finance education can positively affect students' spending and savings habits for a lifetime.
- Social Purpose: People Helping People. Credit unions exist to help people, not make a profit. Our goal is to serve all of our members well, including those of modest means - every member counts. Our members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and our employees to get involved in community charitable activities and worthwhile causes - just ask us.
- Thread Starter
- #23
Years ago it was the AAEFCU, then they voted to change the name, now its staffed with some of the same people running AA.
Ms Tree
Veteran
- Jul 13, 2010
- 9,731
- 9,025
Bizar. I have been banking with the AA CU since I started with AA back in '89. Never had any fees and still have no fees. I have had 3 car loans, 2 home loans and never had an issue. I refinanced my current house a while back to a 15 yr and they only charged me about $500 to do it. Seven-Elevens are all over the place the place so I never have to worry about ATM fee's. I cannot imagine banking anywhere else.
