ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Credit unions are owned and governed by its members. Any person who becomes a member can actively participate in the affairs of the organization by direct voting. For example, all members participate in the election of the board of directors. On the other hand, banks are usually owned by a small group of shareholders.

Detailed explanation-2: -Being a credit union member means you share your financial institution’s ownership, vision and profits. It gives you the opportunity to shape your personal banking experience, as well as the impact your banking has on your local community. Membership has meaning and value.

Detailed explanation-3: -YOU ARE PART OWNER. Credit unions are owned and controlled by the people, or members, who use their services. Your vote counts. A volunteer board of directors is elected by members to manage a credit union.

Detailed explanation-4: -Their Customers Aren’t Just Members-They’re Stakeholders “On the other hand, credit unions are owned by the members, so in a credit union, you’re not just a member but also a stakeholder. If you have $20 in your account, you have the same voting rights as someone with $20, 000 in their account.

Detailed explanation-5: -In a credit union, every member is also a part owner. Because credit unions are co-operatively owned, members’ deposits are treated as shares. Shares do not earn interest, but instead, earn dividends. When a member opens a credit union account, unlike a bank, they are given a minimum of two (2) share accounts.