What is a Credit Union?

There are thousands of member-owned cooperative financial institutions, known as credit unions, in the U.S.

A credit union is usually formed around a common bond, such as employment, and its purpose is to give member-owners a place to save and borrow at reasonable cost. A credit union differs from a bank -- a bank is privately owned by an individual, a family, or a group of investors or stockholders. The profits from a bank belong to the private owners, who are free to invest the profits back into the bank or take them for themselves. In the case of large banks, those profits usually leave our local area and do not benefit the local economy. In a credit union, there is no private ownership. Our members are the owners, and all profits stay in the credit union, locally, to be used to benefit all the members.

Members put their money into a variety of savings and investment accounts. This money is then loaned to members, who pay interest. After operating expenses and reserve requirements are met, the remaining income is returned to the members as dividends, lower costs, lower loan rates, reduced fees, and other financial benefits.

A Community Charter
St. Cloud Federal Credit Union is chartered as a community credit union -- that means everyone who lives or works in the tri-county area of Stearns, Benton, and Sherburne can do their banking with us.

"Joining" our credit union simply means opening and maintaining a minimum of a $10 savings account. Then you can take advantage of all the other financial services we offer.

Not-For-Profit
Member-owned credit unions are not-for-profit. They are not privately owned as banks are -- there are no stockholders demanding ever-increasing profits. Credit unions exist only to serve their membership.

As a result, credit unions are able to pay generally higher dividends on savings, and charge generally lower interest rates on loans, as well as offer a complete range of banking and financial services with lower fees.


Full Range of Banking Services
Today, credit unions offer a full range of financial services, including home equity loans, mortgage loans, business loans for members with small businesses, credit cards, Online Banking, ATM service, and much more.

When you join a credit union, you become a member and owner -- and once a member, you're a member for life.


Ownership in a Credit Union

St. Cloud Federal Credit Union is a federally-chartered "financial cooperative," organized under strict regulatory laws that are monitored and enforced by the National Credit Union Administration, an agency of the U.S. Government. The NCUA, through its "National Credit Union Share Insurance Fund" insures each member's deposits for $250,000, in the same way the FDIC insures bank deposits.

Local, Volunteer Board
The credit union is governed by a local volunteer Board of Directors that establishes and reviews policy.

The directors are credit union members who are elected by the membership at an annual meeting, and serve without pay. These volunteers give generously of their time because they believe in the credit union philosophy of "People Helping People".

Every Member is Actually an Owner in the Credit Union
Every member of St Cloud Federal Credit Union is an owner, with an equal voice, through their vote, in the credit union's future, regardless of how much he or she has on deposit.

At the credit union, there is no select shareholder group that profits more than anyone else. All members profit -- individually and collectively. As our mission statement indicates, St. Cloud Federal Credit Union's mission is to "engage in a relentless effort to provide superior service to our members."


An Overview of St. Cloud Federal Credit Union

St Cloud Federal Credit Union was chartered in 1930 by local postal employees. It has since expanded to include everyone who lives, works, or worships in Stearns, Benton, and Sherburne counties.

St. Cloud Federal Credit Union is a not-for-profit financial cooperative; in contrast, banks, savings & loans, and other financial service providers are for-profit, stockholder-owned corporations.

Banks need a profit from customer business to pay their stockholders. At the credit union, we refer to our customers as our "members" because they all share in the wealth of credit union membership, a truly democratic arrangement. Earnings are returned to members in the form of higher deposit rates, lower loan rates, lower fees and a wide variety of affordable services.

St. Cloud Federal Credit Union provides a full range of products and services, along with excellent personal service that you can't find at the BIG banks down the street.

St. Cloud Federal Credit Union is proud to serve the financial needs of our members. According to our federal charter, everyone who lives or works in Stearns, Benton, or Sherburne counties is eligible for membership at St. Cloud Federal. We invite everyone to join! Make It A Family Affair In addition, immediate family members of our members may join, regardless of where they live or work.

Immediate family members include: spouse, child, sibling, parent, grandparent, or grandchild. This also includes stepparents, stepchildren, stepsiblings, and adoptive relationships.

How to Become a Member

Our Member Service Specialists will help make your introduction to the credit union an easy, pleasant experience. You can open an account at our St. Cloud Office or our Sartell Office, and you can do your transactions at either convenient location.

	To open an account, you need to bring:  A driver's license or picture ID.   Your Social Security Number   Your initial $10 deposit in a primary savings account, which is the minimum deposit required for credit union membership and ownership; plus a one-time $15 membership fee.