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Frequently Asked Questions

What Does “Not-For-Profit” Mean?

In the credit union context, “not-for-profit” is not the same as for a “non-profit” charity or similar organization. Credit unions are not-for-profit because their purpose is to serve their members rather than to maximize profits. Unlike charities, credit unions do not rely on donations, and are financial institutions that must make a small profit. A credit union’s revenues (from loans and investments) must exceed its operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency.

What is the Routing & Transit Number “R & T”  “ABA”

The routing number for MembersFirst Credit Union is 261174432

Are MembersFirst savings deposits insured?

Yes. All savings accounts are insured up to $250,000 by the National Credit Union Administration (NCUA), which is an agency of the federal government.

Who can join a credit union?

A credit union exists to serve a specific group of people, such as a group of employees or the members of a professional or religious group. This is called a “field of membership.” A credit union’s field of
membership may also include geographic areas and members of a social or economic group.

What is the purpose of a credit union?

The primary purpose in furthering a credit union’s goal of service is to encourage its members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made
loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.

Who owns a credit union?

Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investment. A credit union doesn’t operate in this manner. Rather, each credit union member owns one “share” of the organization. The user of credit union services is also an owner, and is even entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.

What is a Credit Union?

A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the
membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. As a result, members are provided with a safe, convenient place to save and borrow at reasonable rates, at an institution which exits to benefit them, not to make a profit.

How did credit unions start?

The first credit union cooperatives started in Germany over a century ago. Today, credit unions are found everywhere in the world. The credit union movement started in this country in Manchester, New
Hampshire. There, the St. Mary’s Cooperative Credit Association, a church-affiliated credit union, opened its doors in 1909. Today one in every three Americans is a credit union member.