Credit Union Difference
Local, Member-Owned, and Not-for-profit
The Credit Union Difference
Rivermark is a not-for-profit financial cooperative, owned by the people who save and borrow here. Unlike a bank, Rivermark does not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to members in the form of lower loan rates, higher dividends on deposits and lower fees. We exist solely for the benefit of our member/owners. insurance at a credit union.
What is a Credit Union?
A credit union is a federally insured financial institution, just like a bank. Unlike banks – and what sets us apart – is that a credit union is owned by all of its customers (often called members). This is important because it means that instead of turning any profits over to shareholders, like banks do, credit unions return profits to customers through better rates and lower fees.
Your Money is Safe in a Credit Union.
Deposits in most federally insured credit unions are insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a division of the National Credit Union Administration (NCUA), which is the federal regulator for credit unions. Funded by credit unions, the NCUSIF is backed by the full faith and credit of the U.S. government. Learn more.
Credit Unions vs Banks
| Credit Unions | Banks | |
|---|---|---|
| Organization | Not-for-profit cooperative. Profits are returned to members through lower loan rates, higher dividends on deposits and lower fees | For-profit corporation. Profits are returned to shareholders. Primary aim to maximize return for shareholders/investors. |
| Ownership | Owned by its members. Board of directors elected by and from the membership. | Owned by its stockholders. Board of directors elected by shareholders- not customers. |
| Decision Making | Owned by its members. One vote per member (each member/owner has the same power) | Owned by its stockholders. Only stockholders vote. One vote per share of stock (more stock means more voting power) |
| Product Offerings | Offer better overall rates and lower fees due to nature of the organization and its dividend distribution. | Rates and fees may not be favorable because of for-profit status of banks. |
| Generation of Capital | Generated only through income stream. | Generated through income stream and/or issuance of stock. |
| Who Benefits | Members/owners | Stockholders |
| Deposit Insurance | NCUA | FDIC |