How Are Credit Unions Different Than Other Financial Institutions?
Crucial differences exist-- in ownership, in cost of borrowing money, and in use of services. Credit Unions are member-owned, volunteer directed, not-for-profit cooperatives dedicated to improving members' lives. As a result, savings generally receive higher dividends, loan interest rates are lower, and many financial services are provided free of charge. A bank is owned by stockholders, guided by a compensated board of directors, and very much for profit. This usually translates into higher prices on loans, lower rates of return on savings, and higher fees for many bank services.

Credit unions are the only democratically controlled financial institutions in the United States. Members elect a volunteer board of directors to oversee the credit union. The executive management reports to this board. Bank directors, however, are paid and legally bound to make decisions that benefit stockholders, not customers.

“People Helping People”
Credit unions exist solely to serve the needs of their membership. This emphasis on people rather than profit makes them unique. Credit unions make for increased citizen participation and empowerment because people run these types of financial institutions rather than stockholders. This reinforces a spirit of independence and responsibility at a 'grass roots' level and helps bring communities closer together. Credit unions strive to improve the economic and social well-being of all members and have been used to help against financial hardship and debt problems.

Credit unions such as LGE, who operate locally, can lead to more money being retained in the area. This provides an array of benefits, such as more money spent in local shops and on local services (meaning more local jobs).

LGE is committed to not only providing financial services to the Cobb County community and its surrounding areas, but also to being an active participant of the community in terms of philanthropic involvement. To learn more or to catch the credit union spirit of “people helping people,” please contact our community relations committee at 1-800-541-8921 or communityrelationscommittee@lgeccu.org.