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.
The primary purpose is to encourage members to save money and offer affordable loans. 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 higher dividends, lower interest rates and improved services.
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.
A credit union exists to serve a specific group of people, such as a group of employees or the members of a professional or religious group. This is called a “field of membership.” The field of membership may include where they live, where they work, or their membership in a social or economic group. Call Oklahoma Federal Credit Union today for eligibility information.
Joining Oklahoma Federal Credit Union is easy! Once eligibility is established, simply complete a new member account card and deposit a minimum $5.00 into a savings account and you are a member-owner! Once you become a member, your family is eligible for membership as well! Check with a Member Service Specialist for details.
Yes. Every member account is insured for up to $250,000 by the National Credit Union Administration (NCUA), a U.S. Government Agency. As an added member benefit, an additional $250,000 of insurance is provided by OKFCU through Excess Share Insurance.