Credit unions are not-for-profit financial cooperatives serving members who share something in common-employment, association membership, or residence in a particular geographic area. More than 70 million U.S. consumers are member-owners of, and receive all or part of their financial services from, the nation's 12,047 credit unions.
Credit unions are democratically owned and controlled institutions based on 'people helping people' principles. Credit union boards of directors are elected by members; each member has an equal vote, regardless of how much he or she has on deposit. Only members may serve as directors, and directors serve without compensation. Credit unions have no outside stockholders, so after reserves are set aside, earnings are returned to members in the form of higher dividends on savings, lower loan rates and lower cost services.
Credit unions are chartered under either federal or state law. Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA), an independent agency of the U.S. Government. NCUA's three board members are nominated by the President and confirmed by the Senate. State chartered credit unions are regulated by their state credit union department. Midland Co-op Credit Union is state chartered under the laws of Minnesota. NCUA administers the federal insurance fund, NCUSIF, which covers all federal credit unions, and most state chartered credit unions. No taxpayer money is used for regulating and overseeing federal credit unions, as all activities of NCUA and the NCUSIF are funded by credit unions.
Credit unions primarily engage in consumer loans and residential real estate lending to their members. Credit union performance is at a historically high level. Currently, credit union capital nationwide is 10.28% and the equity ratio of the federal insurance fund, the National Credit Union Share Insurance Fund (NCUSIF), has operated above 1.25% for 11 consecutive years.
Founded on the basic democratic premise of the cooperative movement, credit unions believe that access to low-cost financial services is critical to the health and stability of ordinary citizens. In fact, more than 67 million Americans trust that their credit union will provide the services to improve their financial well being.
Credit union membership offers many benefits. Services offered range from simple savings to home equity loans to IRAs. Study after study has revealed that on average, credit unions provide the best financial offerings with fewer fees, lower rates on loans and higher rates on savings. And credit unions continually score higher than all other financial institutions in consumer satisfaction surveys.
Ownership in the Credit Union
As a member of the Credit Union you have a say in how it is run. Members can vote for the credit union's Board of Directors on a one-member, one-vote basis. Board of directors and Committee members are chosen from the membership and serve on a voluntary basis.
As a member of a credit union you will earn a higher rate of interest (dividends) on your Share Savings Account and pay lower rates on loans.
It only takes $5.00 to open an account with Midland Co-op Credit Union. A balance of $25.00 and more will earn interest (dividends).
Midland Co-op Credit Union was established in 1940 to serve the employees of Midland Cooperatives. After Midland Cooperatives merged in 1982 the Credit Union continued to serve the former employees and their family members. Over the years the Credit Union added several small employee groups (SEGs) to its field of membership. Those SEGs include:Join today
The credit union idea is a simple one: People should be able to pool their money and make loans to each other. It's an idea that evolved from cooperative activities in 19th century Europe.
Since that time, the idea's guiding principles have remained the same:(1) Only people who are credit union members should borrow there; (2) loans are made for 'prudent and productive' purposes; (3) a person's desire to repay (character) is considered more important than the ability (income) to repay. Members are, after all, borrowing their own money and that of their friends. These principles still govern most of the world's credit unions.
As the 20th century began, the credit union idea surfaced in Canada. Canada's successful efforts profoundly influenced two Americans: Pierre Jay, the Massachusetts banking commissioner, and Edward A. Filene, a Boston merchant.
The two men helped organize public hearings on credit union legislation in Massachusetts, leading to passage of the first state credit union act in 1909
To be the most desirable financial institution serving present and potential members with cost-effective financial services.
When legislation or bankers' lawsuits attack any credit union, it's an attack on all credit unions. Your Credit Union proudly protects members' right to join and participate in their not-for-profit financial cooperative.