Federal Credit Unions are different from commercial banks because the ultimate goal of the latter is to gain profits for the bank owners while the ultimate goal of Federal Credit Unions is to provide the financial tools needed so that the customers achieve financial freedom. This is how extra funds earned by the Federal Credit Union are turned into either dividends for the customers or money that will make available cheaper lending rates. Because of this, people are more likely to want their money managed by Federal Credit Unions rather than by commercial banks. And when it comes to selecting a credit union, it is a good choice to join with the USA's largest, the Navy Federal Credit Union.
The Navy FCU started as a savings club in 1933. It was an unusual period to begin such an undertaking because the whole country was suffering from an economic downturn, yet the concept of co-ownership excited, prevailed, and expanded. Ever since then, the Navy Federal Credit Union has acquired a broad base of membership, transforming it into one of the strongest financial institutions in the USA. By the close of the year 2007, the Navy FCU had more than $33 billion in assets and almost $24 billion in member savings.
Despite the implication of its name, “navy,” a person need not directly serve in the U.S. Navy to become a member of the Navy FCU. This giant credit union is open other people to join. The official website at http://www.navyfcu.org/ clearly describes how a person can be allowed membership. One important criteria of membership eligibility is your family. That is, if someone in your family is already a member of the credit union, the members of his or her family, including all household members, adopted children, and stepchildren, are automatically eligible to join.
When someone becomes a member of the Navy FCU, he or she is entitled to several financial products and services. One being a free checking account that also comes with a debit card. Unlike most commercial banks, the Navy FCU offers the debit card free. For financial convenience customers get access to an online account management system. Visa and MasterCard credit cards are also offered and the good news is that these credit cards have low APRs (Annual Percentage Rates). The other services offered by the Navy FCU, such as auto loans, equity loans, and mortgages, also have low rates. Why? Because the Navy FCU are not trying to make a profit! Their profit goes right back to all the customers in the form of lower financial rates.
The members of the Navy FCU have been assured that this credit union will continue to remain stable and strong in spite of the falling real estate market and threats of recession. The President, Cutler Dawson, points out four major reasons that have kept the Navy FCU financially sound. First, the Navy FCU does not participate in subprime lending. Second, they only utilizes shrewd and rational practices in underwriting. Third, the Navy FCU has taken many steps that ensures a position of strong liquidity. And fourth, the Navy FCU makes available key information that will direct financial directions with the best interest of their member base in mind.