Common Questions - Liberty First Credit Union

Common Questions

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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.

 Credit UnionBank
PurposeNot for profit, not for charity, but for service.To make a Profit.
DefinitionA financial cooperative owned and controlled by its membersOwned by shareholders who may or may not have accounts there
StructureDemocratic with every member having an equal voice with one vote.Depositors are not allowed to vote. Only shareholders may vote.
DirectorsDirectors are elected by members and volunteer their time.Board Members are elected by their shareholders and are paid.
EarningsEarnings are returned to members in the form of dividends, higher savings rates, lower loan rates, and improved servicesEarnings are returned to shareholders.
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