Credit Union Field of Membership | CUCollaborate (2024)

FAQs

What is a credit union's field of membership? ›

There are three basic forms of groups eligible for membership in a credit union: groups based upon a common bond of occupation; groups based upon a common bond of association; and, groups within a well-defined neighborhood, community, or rural district.

As set forth in the Act and Chartering Manual, there are three types of federal credit union charters: single common bond (one occupational or associational group), multiple common bond (multiple groups), and community.

Credit Unions are required by law to restrict access to the groups they serve, but many have very simple requirements such as living in an area. A focus on “common bonds” is important in credit unions, which is why fields of membership single out particular groups or communities.

Credit Union Advantages: Why Bank At A Credit Union

Higher returns, better savings, low interest on borrowings, and a sense of community – these are just a few of the benefits of credit union membership.

A share savings account is an credit union's version of a savings account. The “share” represents an accountholder's partial ownership interest of the credit union. Interest is paid out of credit union profits.

Membership Officer means the member of the Committee appointed to oversee membership of the Association.

An FCU may only extend membership to individuals who are within its FOM. Chapter, Section II, NCUA Chartering and Field of Membership Manual (IRPS 94-1, as amended by IRPS 96-1). An FCU may include in its FOM those individuals who share a common bond of occupation, association, or community. Id.

The main benefits of a credit union vs. a bank are that credit unions tend to offer better rates and customer service, lower fees, and a national network of ATMs.

First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.

Why would a credit union deny you? ›

For example: A history of writing bad checks. Some people are listed in a database of customers who have been identified as having mishandled checking accounts in the past, which means the bank or credit union is less likely to let them open a checking account. Failure to provide adequate identification.

Many credit unions have specific membership requirements to join, such as living in a specific area, working in a certain profession or having military ties. Not all credit unions have strict membership requirements, though. Check for nearby locations.

ATMs and Branches Might Not Be Convenient

If you're considering a credit union that's on the smaller side, it might have a limited number of locations in your community. Finding time to visit the branch can be difficult, especially since some credit unions don't have the most flexible hours.

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

Banks operate as for-profit institutions. Anyone can open an account with a bank, whereas credit unions have membership requirements.

When you join a credit union, you aren't just a member, you're a part owner. Credit unions are not-for-profit financial cooperatives owned and controlled by the members themselves. As a result of this structure, the decisions made by credit union managers and board members are in the best interest of the members.

While many credit unions offer membership only to certain groups, some credit unions are open to everyone. Becoming a member of a credit union requires applying for membership and meeting a credit union's requirements.