Celebrating International Credit Union Day

Every year, on the Third Thursday of October, we celebrate International Credit Union Day to honor the credit union movement's history, recognize its impact on communities, and appreciate the members who make it all possible.

For us, this day holds special significance. Founded in 1926 as the Detroit Teachers Credit Union, we have always put the community first. What began as a small cooperative to serve local educators has grown into an institution that continues to prioritize people, not profits. From its early days, we have been rooted in the philosophy of helping members achieve financial stability and well-being, a mission that remains at the heart of everything we do.

Now let's take a closer look at what makes credit unions so special - and why they're often the better choice compared to banks.
 

The Benefits of Credit Unions vs. Banks

While both credit unions and banks offer essential financial services like checking accounts, loans, and mortgages, the way they operate and the value they provide to customers is fundamentally different.
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1. Member-Owned and Not-for-Profit

One of the most significant distinctions is that credit unions are not-for-profit organizations. When you open an account at a credit union, you're not just a customer; you become a member and partial owner. Any profits made by the credit union are returned to the members in the form of lower fees, higher savings rates, and better loan terms. Banks, on the other hand, are for-profit entities whose primary goal is to generate revenue for shareholders. ​​​​​​
 

2. Better Interest Rates and Lower Fees

Because credit unions are focused on serving their members rather than maximizing profits, they often offer more favorable interest rates on loans and credit cards and higher yields on savings accounts. Additionally, credit unions tend to have fewer fees and more flexible account options. For members, looking to stretch their dollar further, these benefits can make a big difference in their financial health.
 

3. Personalized Service and Community Focus

Credit unions are deeply rooted in the communities they serve, and their customer service reflects that. Members often enjoy more personalized attention and a focus on relationship-building, rather than just transactions. Credit unions take pride in helping members achieve their financial goals, whether it's buying a home, starting a business, or saving for college. Many credit unions support local events, provide financial education, and invest in the well-being of their communities. In contract, banks tend to have more of a global and profit-driven focus, which can dilute the personal touch that many consumers value.
 

4. Member-Driven Decision Making

Another key difference between credit unions and banks is how decisions are made. Credit unions operate under a "one member, one vote" principle, meaning that every member has an equal say in how the organization is run, regardless of how much money they have in deposit. Banks, by contrast, are controlled by a small group of shareholders, whose votes are weighted by the number of shares they own. This democratic model ensures that a credit union's decisions are always aligned with the best interest of its members.
 

5. Financial Education and Empowerment

Credit unions are committed to helping their members become more financially literate and empowered. Many offer resources like free financial counseling, workshops, and tools to help members manage their money more effectively. This focus on education is another way credit unions demonstrate their commitment to member well-being, something that can be harder to find at a traditional bank.
 

Choose Community, Choose Credit Unions

International Credit Union Day is more than just a celebration, it's a reminder of many ways that credit unions make a positive impact on individuals and communities. Whether through better rates, lower fees, or personalized service, credit unions are dedicated to empowering their members and supporting financial well-being. Michigan First Credit Union, with nearly a century of serving its members, is a shining example of this dedication.

As we celebrate this day, consider the benefits of being part of a cooperative that puts people first. If you're not already a member, this might be the perfect time to explore what your local credit union has to offer. By choosing a credit union, you're not just choosing a financial institution; you're choosing a community that's invested in your financial success.