What is a Credit Union?​

Dive into the Cooperative Principles that Guide Us​

If you’re just getting acquainted with the idea of credit unions or looking to delve deeper into our principles, you’re in the right place. This page is your go-to resource for unraveling the unique features of credit unions, especially ours here at the Toledo Teachers Credit Union Ltd.

A credit union is a financial co-operative which is made up of a group of persons who join together to make certain financial services available to themselves and the members of the credit union. The major services offered by a credit union is to provide a facility to save money and to make loans available to members at a rate of interest lower than the commercial rate.

All members of any one co-operative must have something in common. They must all fall under what is called a common bond of the co-operative, before they can become eligible to join that particular co-operative. The bond could be, for example. that the people live in the same district or community or that they are involved in the same activity or profession.

To join a credit union, the members must invest a sum of money. This sum is broken down into units called Shares. Under the principles and practices governing co-operatives, this investment allows the members to become owners of the credit union. Regardless of the number of shares held in the credit union, each member has only one vote.

How is a Credit Union different from a Bank?​

Credit unions are owned by its members whereas banks are owned by its shareholders who are not necessarily customers of said bank.
Credit unions are democratically controlled with each member of the credit union having a vote. Customers of a bank do not have a direct say in how the bank is operated. Decisions are usually made by a small group of directors.
Credit unions are non-profit organizations. All profits are reinvested into the credit union and its community. A share of the profit is also given back to each member in the form of an annual dividend. Bank profits go to a small group of shareholders and in most instances are not reinvested into the country within which the bank operates.

The Credit Union Logo?​

The “hands, family and globe” symbol represents credit unions worldwide. This trademark represents credit unions in any language. The theme is universal and conveys the image of all credit unions.

The globe symbolizes the worldwide scope of the movement and suggests the impact that a truly united movement can have on the financial development of all countries.
The four silhouettes within the globe represents the real focus of the credit union movement. It is the human element – the harmony of people working for people – that distinguishes credit unions from other financial institutions.
The cupped hands symbolize the both the financial security and support offered by the international credit union network, as well as the fact that the success of the movement is in the hands of its members.
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