What are assets in a credit union? And how do they benefit you?

Have you ever wondered what happens to your money when you deposit it in your credit union savings account? It joins a pool of resources called the credit union’s assets. These assets are like the building blocks your credit union uses to serve its members, you!

Think of it like a community potluck. Everyone brings a dish to share, and together you have a fantastic feast. At a credit union, your deposits are your contribution to the pot. These deposits, along with other assets like cash on hand and investments, allow the credit union to offer loans, mortgages, and other financial services.

So, how does this benefit you? Here’s the win-win:

Stronger borrowing power: A healthy pool of assets means the credit union has more resources to lend. This translates to potentially lower interest rates and better loan terms for you when you need to borrow money.

Improved savings returns: The credit union reinvests some of its assets, which can lead to higher returns on your savings accounts.

Focus on members: Unlike for-profit banks, credit unions are member-owned cooperatives. This means their primary focus is on serving your financial needs, not maximizing profits for shareholders.

In short, a strong asset base is the foundation for a healthy credit union. By being a member and contributing your deposits, you’re not just saving money, you’re actively participating in a financial community that benefits everyone.

It’s your money, working together for a stronger financial future.