HIGHTSTOWN, N.J. (3/11/13)--The benefits that credit unions offer consumers were cited in an article in the February issue of South Jersey Biz magazine.
The article, titled "Credit Unions vs. Banks," compared the differences between credit unions and banks and what they offer consumers.
As member-owned, nonprofit financial cooperatives, credit unions are designed to represent a union of people with a common bond, Ellen Kuiper, president and co-CEO of ABCO FCU in Rancocas, N.J., told reporter Jennifer L. Nelson.
Because of the cooperative structure, every member is part owner of a credit union, regardless of the dollar amount in the member's account, said Sandra R. Martin, publicity coordinator at South Jersey FCU, Sewell, N.J.
The cooperative structure usually allows credit unions to offer lower rates and more affordable terms than banks, better rates of return on savings accounts, low- or no-fee checking accounts and ATM access and dividends, Martin said.
Credit unions can offer lower rates because they aren't beholden to shareholders or pressured to return profits every quarter, Martin told the publication. Financial gains are returned to members in the form of lower rates, she said.
The article noted that the common bond required for membership is often based on employment or location, and pointed to Campbell Employees FCU, headquartered in Cherry Hill, N.J., as an example. It is open to employees of Campbell Soup Company, PHH Mortgage, Pinnacle Foods, Northeast Products and Southeast Products and their immediate family members.
To read the full article, use the link.