What’s 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. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.
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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 that 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.
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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.
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What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage 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.
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Are savings deposits insured?
Yes. All savings accounts are insured up to $100,000 by the NCUA, the National Credit Union Administration, an agency of the federal government.
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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." The field of membership may include where they live, where they work, or their membership in a social or economic group.
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How can I join Al-Gar Federal Credit Union?
Becoming a member of Al-Gar FCU is easy. Most everyone who live, work, worship, attend school in, and businesses and other legal entities located in Allegany County and Eastern Garrett County, Maryland and Mineral County and Western Hampshire County, West Virginia are eligible for membership. (Some geographic restrictions do apply)
Also eligible for membership are the following:
Employees of the U. S. Postal Service who work in or are supervised from the Cumberland Sectional Center in Cumberland, MD.
Employees of the U. S. Government, other than the U. S. Postal Service, who work in the following counties:
Maryland
Allegany
Garrett
West Virginia
Mineral
Hampshire
Hardy
Pendleton
Grant
Employees of the Potomac Farms Dairy, Inc who work in Cumberland, MD
Contract milk haulers or suppliers for Potomac Farms Dairy, Inc who work in or are paid from Cumberland, MD
Employees and elected and appointed officials of the Town of Grantsville, MD
Members of record of the Pitt-Co MD Federal Credit Union as of 06/01/93
Employees of the Cumberland YMCA, who work in Cumberland, MD
Employees of Progressive Physical Therapy & Sports Medicine Clinic, who work in Cumberland, MD
Employees of Greene Street Citgo, who work in Cumberland, MD
Employees of Cut N Curl who work in Cumberland, MD
Employees of Federal Printing Co, Inc., who work in Cumberland, MD
Employees of Cumberland Villa Nursing Center who work in Cumberland, MD
Employees of McClarran & Williams, Inc. who work in Cumberland, MD
Members of the Vietnam Veterans of America, Chapter 172, in Cumberland, MD, who qualify for membership in accordance with its bylaws in effect as of June 2001
Employees of Timber Inc. who work in Berlin, PA
Employees of Rocky Gap Lodge & Golf Resort who work in Cumberland, MD
Employees and contract employees of American Associates, Inc. who work in or are paid from Fort Ashby, WV
Employees of Anderson, Rudd & Donahue (Attorneys at Law) who work in Cumberland, MD
Employees of Blind Industries and Services of Maryland who work in Cumberland, MD
Employees of Wilson Supply, who work in Cumberland, MD
Spouses of persons who died while within the field of membership of this credit union; employees of this credit union; persons retired as pensioners or annuitants from the above employment; members of their immediate families or households; and organizations of such persons.
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