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What is
a credit union?

A credit union is a financial cooperative, owned and controlled by its members. Unlike a bank or other savings institution, it is not-for-profit, which means that earnings are returned to members in the form of better rates on their savings and loans, or are invested in new or improved services.


All members of a credit union have something in common. Once you purchase a share in the credit union, you become a member. As a shareholder, you help to set the policies and direction of the Credit Union by electing the board of directors on a one-member, one-vote basis.


Only members can borrow from credit unions. Credit unions specialize in consumer loans for cars, vacations, education, home improvements, personal emergencies, and other needs – often at interest rates lower than those of other lenders.


Why Should I Join a Credit Union?

If you’re still not sure why you should join a credit union, take a few minutes and watch this video – 15 Reasons Why You Should Only Bank at a Credit Union.


How Safe Is Your Credit Union?

The short answer to this question is: Very Safe. The safety of credit unions is based on three specific factors: its structure, business practices, and the insured status of members’ savings.



The declines in the stock market have no direct effect on Community Powered Federal Credit Union. By law, credit unions are not allowed to invest in the stock market or other speculative type investments. Members’ savings are mainly reinvested in loans to fellow members and debt obligations backed by the U.S. government.


Business Practices

Community Powered is known for prudent loan underwriting. From 2005 to the present we have issued $89.5 million in loans. During the same period we have charged $1.55 million (1.73%) in uncollectible loans against reserves. Community Powered currently has $13.7 million in capital/reserves and is rated “well capitalized” by the National Credit Union Administration. With capital at this level (12.9%) Community Powered is uniquely poised to withstand the pressures of the current economic downturn.


Your Insured Funds

Accounts at Community Powered, like all federal credit unions, are insured by the National Credit Union Share Insurance Fund. Regular accounts are insured up to $250,000.00 and IRA accounts up to $250,000.00. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.


In this current environment of economic uncertainty, there is one thing you can be sure of. Community Powered Federal Credit Union continues to be one of the safest places to place your life savings. We are also poised to help you, doing business as usual in these turbulent times.

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