Credit Union Statisitics and FAQs
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Michigan & U.S. Credit Union Statistics
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Michigan
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U.S.
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Number of Credit Unions
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385
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9,015
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State Chartered
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239
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3,623
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Federally Chartered
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146
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5,392
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Under $5 Million in Assets
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65
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2,790
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Over $50 Million in Assets
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139
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2,033
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Number of Members
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4,438,401
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87,017,511
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Savings ($000)
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26,473,030
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596,679,742
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Loans ($000)
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20,594,485
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473,671,054
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Assets ($000)
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31,720,799
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700,446,861
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All data as of 6/06
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All data as of 12/05
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For regional statistics, visit http://mcul.cusiteonline.com/pressroom/micus_stats.php#micusstats
Frequently Asked Questions about Credit Unions
- What is a credit union
- Why join a credit union
- How can I join a credit union?
- What’s the purpose of a credit union?
- Who may join a credit union?
- How are credit unions operated?
- Is my money safe at a credit union?
- How is the Fund financed?
- Who governs credit unions?
- How many credit unions are there?
- How did the idea of the credit union originate?
- When were credit unions first organized in the United States?
- How did the credit union movement expand in the United States?
A. A credit union is a cooperative financial institution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates.
Credit unions, like other financial institutions, are closely regulated. And they operate in a very prudent manner. The National Credit Union Share Insurance Fund, administered by the National Credit Union Administration (NCUA), an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $100,000.
What makes a credit union different from a bank or savings & loan? Like credit unions, these financial institutions accept deposits and make loans—but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments.
A. Credit unions exist only to serve their member-owners. Consumer surveys repeatedly show members are more satisfied with the service they receive from their credit union than are customers of banks or savings and loans. Credit unions are democratic organizations directed by their members. Members have the power to direct credit union policy and, if dissatisfied, can even replace the board of directors. Credit unions practice a one-member, one-vote philosophy for all elections, unlike for-profit financial institutions whose stockholders vote according to the number of shares of stock they own. Their nonprofit status enables credit unions to operate at a lower cost than many for-profit institutions and helps them to offer competitive loan and savings rates. For instance, credit unions usually charge lower interest on credit cards than most other providers, and many credit unions charge no annual card fee.
Credit Unions vs. Banks
Credit unions charge lower fees than banks on checking accounts and credit cards. For example:
Credit card over the limit fees
On average, credit unions charge between $15 and $18, whereas banks charge $29.23, when a cardholder exceeds his/her credit limit.
Credit card late fees
On average, credit unions charge between $15 and $19 for a late payment, whereas the average late fee for banks is $36.50.
Checking account fees
Nearly 75 percent of credit unions that provide share draft/checking services offer at least one free checking account.
Overdraft fees
Credit unions charge, on average, $16.24 per overdraft, whereas banks and savings institutions charge $27.28, a difference of $11.04.
Non-sufficient fund fees
While NSF fees are nearly universal across all financial institutions, credit unions charge nearly $7.00 less on average.
A. Credit unions are for everyone, but the law places some limits on the people they may serve. A credit union's charter defines its "field of membership," which could be an employer, church, school, or community. Anyone working for an employer that sponsors a credit union, for example, is eligible to join that credit union.
If you don't belong, here's how to find a credit union to join:
- Poll your family. Does your spouse's employer sponsor a credit union? Most credit unions allow credit union members' families to join. Each credit union, however, may define "family" differently. At some credit unions, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles, and aunts.
- Ask your boss. Your company may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to your credit union.
- Quiz the neighbors. Many credit unions have a "community" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.
- Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union's field of membership. If not, at least you'll know what number to call to ask about membership eligibility.
- Use the credit union finder at lovemycreditunion.org.
Q. What’s the purpose of a credit union?
A. The philosophy of the credit union movement is Not for Profit, Not for Charity, But for Service. Credit unions promote thrift and teach the wise use of credit. Credit unions encourage their members to develop a systematic savings program and they provide a source of low-cost credit. Because credit unions are not-for-profit and have low overhead costs, they are usually able to offer lower interest rates on loans and higher dividends on members' shares (savings). A credit union is also non-profit in the sense that its purpose is to serve the members, not to make money. It needs money to provide services and benefits. But money is the means, not the end itself.
A. Every credit union serves a specific field of membership as defined by its charter. Anyone who falls within the common bond of the credit union may join and share in its ownership. A common bond can be defined as the employees of a company, members of a civic or church group, residents of a community or numerous groups together. Generally, persons within a member's family, by blood or marriage, may also join.
A. Credit unions are democratically controlled by their members. The members, themselves, elect a board of directors from among the membership, which is responsible for setting policy. Day-to-day operations are handled by paid professionals, or in the case of a small sized credit union, by volunteers.
A. Yes, your money is insured by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund created by Congress in 1970 to insure member's deposits in credit unions up to the $100,000 federal limit. Administered by the National Credit Union Administration, the NCUSIF is backed by the "full faith and credit" of the U.S. Government.
A. The NCUSIF maintains at or near 1.30 percent of federally insured credit union deposits. By law, federally insured credit unions maintain 1 percent of their deposits in the NCUSIF and the NCUA Board can levy a premium if necessary. Credit unions voluntarily capitalized the Fund in 1985 by depositing 1 percent of their deposits into the Fund. Since then, the NCUA Board has charged only one premium, when three large New England credit unions failed in 1992 substantially increasing insurance losses. No federal tax dollars have ever been placed in the credit union financial Fund, and no member has ever lost money insured by the NCUSIF.
A. A credit union receives its authority to operate by obtaining a federal or state charter. Federally chartered credit unions follow the regulations set by the Federal Credit Union Act, and state chartered credit unions follow those under the State Credit Union Act. Annual examinations and oversight is conducted by the supervisory agencies—the National Credit Union Administration (NCUA) for the federal credit unions and the Michigan Office of Financial and Insurance Services for credit unions administered under Michigan laws.
A. There are 385 credit unions in Michigan, and a total of 9,015 credit unions in the U.S.
A. 1849 is generally accepted as the year that the first credit union was organized. Friedrich Wilhelm Raiffeisen, mayor of a small German town whose inhabitants had suffered heavy financial losses due to a crop failure and a depression, conceived the idea. He believed that by pooling small sums of money, a fund could be established from which loans could be made at a low rate of interest. Now, as then, credit unions make small loans that other financial institutions would consider too small for processing.
A. The first U.S. credit union was formed in Manchester, New Hampshire in 1909. This was accomplished with the help of Alphonse Desjardins, a Canadian journalist, who had introduced the idea to Canada in 1901.
A. Edward A. Filene, the famous Boston merchant, was on a world tour in 1909 and witnessed credit unions in action...first in India and later in Europe. When he returned home and learned that there was such an organization in New Hampshire, he began a one-man campaign to extend the idea in this country. He is reported to have used more than a million dollars of his personal funds for this purpose. He succeeded in getting state laws giving credit unions legal status, and in 1934 he saw his dream come true when the United States Congress enacted a federal credit union law. Since then the movement has grown tremendously.
