Welcome to the Alamo Chapter of Credit Unions
Credit Unions started in the early 1900s as an alternative to banks. Membership was limited to a select employee group of a company or governmental agency. Now, credit union regulations have been updated to allow membership within a geographic area of each branch location as long as you work, live, go to school, or worship within a branch area.
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. Credit unions also have no outside stockholders, so after reserves are set aside, earnings are returned to members in the form of dividends on savings, lower loan rates, or lower fees.
Federal credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF). NCUSIF protects members’ savings up to $250,000 and individual retirement accounts (IRAs) and Keoghs up to $250,000. Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA), an independent agency. NCUA’s three board members are nominated by the President and confirmed by the Senate. NCUA administers the National Credit Union Share Insurance Fund (NCUSIF), and all federally-insured credit unions are subject to insurance examinations as well. No taxpayer money is used for regulating and overseeing credit unions, as all activities of NCUA and NCUSIF are funded by credit unions.
State chartered credit unions are regulated by their state credit union department and are usually insured by American Share Insurance (ASI). ASI is a private-not-for-profit corporation, owned by credit unions it insures.
Credit unions: Not for profit, not for charity, but for service.
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