Reasons to Move Your Money to A Credit Union

If you’ve been looking for ways to make the most of your money, it may be time to switch to a credit union. While credit unions offer similar products and services to banks, some distinctions give credit unions the ability to make a big difference in how your money grows and is invested. Here are a few reasons to consider when moving your money to a credit union like Hughes Federal Credit Union.  

While banks consider their account holders as customers, credit unions work to serve their member-owners. What does that mean?  When joining a credit union, you become a part of a cooperative movement. The savings account you open at a credit union, also known as a main share account, is more than just a savings account; the account also represents your “share” as part owner of the credit union. 

As part owner, you help elect a volunteer Board of Directors who will decide how the credit union will operate. This democratic process allows credit unions to work in the best interest of their member-owners.

Unlike banks, whose primary objective is to generate profit for their Wall Street shareholders, credit unions proudly possess a not-for-profit status. Instead of paying shareholders a portion of the profit generated, credit unions return their profits to their member-owners in the form of better dividends on savings, lower interest rates on loans, interest-earning checking and fewer fees.

Because credit unions aren’t pushed to make a profit, they focus more on their members’ financial needs, working to provide the right products and services that best serve their goals. 

Designed under the philosophy of people helping people, credit unions understand the importance of a prosperous community to ensure its strength and growth. Because credit unions are locally owned, there is a significant interest in supporting the communities it serves. While banks may use your money to invest in projects that may not align with your morals, credit unions will always look to invest in their members solely. 

Credit unions often provide financial support to local organizations that also share the mission of improving the lives of the people in their community. In addition to donations and sponsorships, credit unions also work to promote financial literacy for all ages by providing seminars and classes on money topics ranging from budgeting to retirement. 

As your money grows, you can rest assured that the money you have in your credit union is safe and sound. As a federal financial institution, credit unions like Hughes are insured by the National Credit Union Administration (NCUA), a federal government agency. Your savings are insured up to $250,000 by the NCUA, while IRAs are insured separately up to $250,000.

The NCUA oversees the National Credit Union Share Insurance Fund (NCUSIF), which provides deposit insurance to protect credit union members' deposits at insured institutions throughout the country.

It's easy to join a credit union since the qualifying requirements extend beyond participation in a specific organization. Each credit union has its own set of qualifications. However, you can typically join if you live or work in a certain location or are a member of particular clubs or organizations, such as hospitals or labor unions. 

Membership at Hughes is open to anyone who lives, works, worships, or attends school in Tucson or through other affiliations. Even if you don’t meet these requirements, different ways exist to become a member. For instance, Hughes allows you to become a member by making a small donation to one of its community Special Interest Groups like the Friends of the Oro Valley Public Library, Friends of the Pima County Public Library, or Friends of the Green Valley Public Library.

Credit unions began with the purpose of serving the underserved and working within the community to pool resources to help one another. This purpose still holds true today. If you’re looking to bank at a financial institution where your interests come first and get more out of your money, here’s what you’ll need to join Hughes:

● Your Social Security Number

● A valid form of identification (U.S. Driver’s License/ID or U.S. Passport with Signature)

● Information for funding your new account (existing Hughes account number, account number, and routing number from another financial institution or a credit/debit card)

● Your previous address (if at current address less than two years)

● If applying for a joint membership/account, the secondary applicant's information

● A minimum deposit of $50 into your main share savings account

Stop by a Hughes branch near you or open an account online today!