How to Choose a... Credit Union There are many benefits to joining an exclusive monetary institution. These include lower interest rates on loans and lower fees. By doing a little research, you should be able to find a credit union that will suit your needs. Ask your friends, relatives and associates about their experiences with credit unions. People that are happy with their institution will be more than willing to provide a recommendation. Search the Internet and investigate the different credit unions in your area. Make a list of the financial institutions that offer the most appealing options for you. Compare the different credit unions on your list. Call their local offices and ask them about their interest rates, fees, minimum balance requirements, loan eligibility, access to ATM machines and online access to accounts. Measure the pros and cons of each credit union and choose the one that best fits your needs. How do I Teach Kids About Credit Unions? As stated by the World Council of Credit Unions, "credit unions ... provide members the opportunity to own their own financial institution and help them create opportunities such as starting small businesses, building family homes and educating their children." There is a lot of value in introducing the credit union concept to kids so as they grow older they will be able to compare types of financial institutions and choose the best type for their goals and financial needs Begin by comparing it to a bank. Explain that banks collect all the investments of depositors and then lend the money to others at a higher interest rate, sometimes a much higher rate. The difference between what the bank pays the depositors and what they lend it at, is how the bank makes money. In addition, if the bank charges fees, it makes more profit. Much of the profit goes to the shareholders of the bank, not the depositors. Show the advantages of a credit union to a bank. Start by stating that a credit union
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is owned by each member/depositor, so any profit the credit union makes in lending money will come back to each depositor. It can come back in the form of lower interest rates than what banks charge, lower fees or a higher return on savings. In other words, the depositor is the one who benefits from the credit union's profits. Speak about the power of each credit union depositor. Each credit union depositor can run for a seat on the board of directors and vote in the credit union's elections to choose a board. This means credit union depositors have a strong say in how the institution is run. In a bank, depositors have no say in how it is run. While traditional banks advertise and function as profit-making organizations, credit unions are community-oriented and cater to members rather than to bank owners or stockholders. Any earnings a credit union accumulates in the process of doing business are used for the benefit of its membership. For example, a dividend may be issued or fees for financial services may be reduced. Credit unions are cooperative, not for profit, organizations owned and operated by its members. The credit union functions to serve its members by providing loans at favorable interest rates and offering low-fee savings accounts and other financial services. By pooling their assets into the credit union, members themselves provide funds to make loans to each other. History Credit unions began in the mid-1800s by a group of tradespeople in Rochdale, England. The idea was to combine their resources to buy goods in bulk at a discount and make those goods available to their members at reasonable prices. The concept spread to Germany, Canada and the United States over the next half-century and continues today. In the United States, some smaller credit unions have merged with larger ones, but overall membership has increased to almost 85 million according to the Credit Union National Association (CUNA). Characteristics A board of elected member volunteers
runs the credit union. In contrast, a typical traditional bank will employ a paid board of directors to oversee the institution. Credit unions may be sponsored by employers, churches, schools or even communities of current residents. Employer sponsored credit unions usually allow employee family members to join. Accountability Federal credit unions are chartered and monitored by the National Credit Union Association (NCUA). NCUA stipulates certain rules of organization and operation to which a federal credit union must adhere. NCUA also provides insurance to depositor members of credit unions through the National Credit Union Share Insurance Fund (NCUSIF). Similar to FDIC insurance, which is commonly provided by traditional banks, NCUSIF is backed by the United States government.
Dedicated to Serving Our Community
Bear Paw Credit Union is committed to our members and our community. We are involved in community outreach with organizations that work for the betterment of society such as: Credit Unions for KidsŽ/ Children’s Miracle Network, Relay for Life, United Way Hill County, Fort Belknap Outreach Program, Havre / Hill County Library, The Salvation Army, Montana Hope Project, Mother’s Against Drunk Driving, and WABC (Women Against Breast Cancer) just to name a few.
Schools and Universities
We support education in our community by being involved with: MSU-Northern, Home-N-School, Havre High School Leadership, St. Jude Thaddeus School and all school districts that we serve.
Arts & Culture
Community involvement would not be complete without the arts and culture we all enjoy here in Montana. Bear Paw Credit Union is actively involved and supports: Montana Actors Theater, North Eastern Arts Network, Wine and Cheese Festivals, Liberty Village Arts Center and Gallery, and H. Earl Clack Museum.
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