IAA Credit Union vs Banks

[ 0 ] April 2, 2015 |

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Do you wonder what the difference between the IAA Credit Union and a bank is? Here are a few interesting facts that differentiate the two!

Size

National banks are on average much larger than IAA Credit Union in assets and employees.

With state of the art technology, IAA Credit Union has just as many products and services, if not more, than a nationally known bank.

IAA Credit Union currently houses only 44 employees to fit all of the financial needs for over 15,000 members.

Profits

Bank’s earnings are generated for their stockholders.

IAA Credit Union is a not-for-profit organization. Earnings are returned back to shareholders with higher dividends and lower interest rates on loans.

With a membership at IAA Credit Union, rest assured the profits earned are returned in your favor.

Shareholders are member owners, which is you!

Membership

Banks do not require membership, they have accountholders.

To be qualified for membership at a credit union, specific qualifications must be met.

To qualify at IAA Credit Union, one must work for the family of companies or their affiliates, have COUNTRY Financial Insurance, become a member of the Illinois Farm Bureau, or have a family member employed with the family of companies.

In 1983, field of membership was expanded to the American Farm Bureau Federation employees.

In 1999, field of membership was expanded to all Farm Bureau members in the state of Illinois, COUNTRY Financial Insurance customers, and patrons of GROWMARK Member Cooperatives.

Board of Directors

Commonly, a bank’s board of directors may be compensated, and be a stockholder in the financial institution.

The IAA Credit Union’s board of directors is strictly voluntary and receives no compensation.

The board of directors at the IAA Credit Union is made up of Illinois Farm Bureau, COUNTRY Financial, and GROWMARK employees.

Better rates

Banks tend to have higher interest rates on loans because they are a for profit financial institution.

Generally IAA Credit Union offers better rates because we are not-for-profit.

Interest rates tend to be lower on consumer loans and interest bearing accounts tend to earn higher interest rates than the national average.

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Category: CU News, Uncategorized

About the Author ()

Rachel has worked at IAACU since April 2013. She graduated from Illinois State University in 2013 with a degree in Agribusiness. Rachel previously worked at the First State Bank of Monticello and for the City of Monticello. Since November 2014 she has been a member of the social media team and participates in other marketing activities. Her daily activities include answering phone calls, solving home banking and Visa questions, as well as helping at the COUNTRY Agency Learning School. She loves staying busy, organized, and proactive!

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