01/14/2025
CREDIT UNIONS: FINANCIAL BENEFITS WORTH KNOWING
Valuable info for the residents of NUTLEY about the hometown credit union: PROPONENT
Nutley, NJ [January 13, 2025] — Proponent Federal Credit Union, a longstanding financial resource in Nutley, conducted a survey* in 2024 to identify ways to better serve the community. The survey found that nearly half (44%) of Nutley residents who are not Proponent members don’t know what a credit union is. This underscores the need to raise awareness about the advantages offered by these financial service providers.
The main distinction between credit unions and banks lies in their purpose and structure. Banks are for-profit institutions owned by shareholders while credit unions are not-for-profit cooperatives owned by customers who are members. Because credit unions exist to serve members, they reinvest profits to benefit them, while banks distribute profits among shareholders. This fundamental difference translates into tangible rewards for members:
High Rates and Low Fees: Credit unions generally offer higher interest rates on savings accounts and share certificates, along with lower rates on mortgages, auto and personal loans. They also tend to charge lower fees for services such as account maintenance, ATM usage, and overdrafts.
Personalized Service: With a focus on long-term relationships, credit unions prioritize individualized service. For example, Proponent encourages members to schedule one-on-one consultations with service representatives who help them take advantage of special offers and the most appropriate products.
Community Focus and Local Decision-Making: Credit unions like Proponent actively support local events, charitable initiatives, and financial education programs. Additionally, loan decisions are often made locally, enabling greater flexibility and faster approval times compared to large, centralized banks.
Proponent’s survey also found that a large majority of Nutley non-member residents (70%) don’t know how to become a member. This is actually a very simple process. Membership is generally open to anyone living, working, or worshiping in a specific area. Enrollment can be completed quickly, either in person or online.
Some people surveyed expressed concern about access to financial services since credit unions don’t have as many branches as major banks. In fact, surcharge-free ATM co-ops provide access to hundreds of ATMs, rivaling the convenience of regional or national banks.
Credit unions also offer the same level of safety and security as banks. Deposits are insured by the National Credit Union Administration (NCUA), providing the same protection that the Federal Deposit Insurance Corporation (FDIC) offers banks.
For individuals seeking a financial institution that prioritizes their well-being, offers low fees, and reinvests earnings to benefit members, credit unions present an excellent option. Proponent invites people to schedule a free one-on-one consultation by calling 973-798-4891or to visit profcu.org to learn more about what the credit union has to offer.
About Proponent Federal Credit Union:
Proponent Federal Credit Union has been a trusted financial partner in Nutley, NJ, for over 50 years. As a not-for-profit, member-owned institution, Proponent is dedicated to helping its members achieve their financial goals through personalized service, competitive products, and reinvestment in member benefits. For more information, visit profcu.org.