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How Do Credit Unions Do It?

Blog Post
2 min read
hand grabbing money off a tree

Credit unions are pulling off a magic trick that would make David Copperfield jealous - offering better loan and savings rates compared with traditional banks. But how do they do it? Are they hiding money trees in the vault? Read on to discover the not-so-secret reasons credit unions are able to give nearly 140 million members nationwide a financial edge.

Member-First Focus

Credit unions operate with a unique "members-first" philosophy, fundamentally different from traditional banks' profit-driven approach. Nearly every decision, product, and service offered by a credit union is designed to help its members overcome financial challenges rather than maximizing shareholder returns.

The Tax Advantage

Credit unions enjoy a unique tax advantage that sets them apart from traditional banks. As not-for-profit financial institutions, credit unions are exempt from federal income taxes. This allows them to dedicate more resources toward member benefits. This tax-exempt status enables credit unions to offer competitive rates and enhanced services without compromising their financial stability
 

Efficiency in Action

Credit union operations are focused on providing services that meet the needs of their specific membership base, allowing them to streamline their processes and reduce unnecessary expenses. This targeted approach enables credit unions to allocate resources more effectively, resulting in lower operational costs compared to large banks that cater to a broader customer base.
 

Why Choose SAFE Federal Credit Union?

Superior borrowing and savings options are only the beginning when you join a member-owned financial cooperative like SAFE. Consider all the perks you enjoy as a valued SAFE Member:

•    Fewer account fees 
•    Personalized service
•    Free checking accounts
•    Exceptional loan rates
•    Free financial literacy resources

And more!

Take advantage of SAFE's exclusive benefits and resources today. Visit our website or contact us to learn how you can get the most out of your SAFE membership!