About Members Credit Union
Who is Members Credit Union?
Members Credit Union is a member-owned, not-for-profit financial cooperative based in North Carolina with headquarters in Winston-Salem. We offer a full portfolio of financial service products while charging fewer and lower fees than the larger for-profit banks. All deposits are federally insured up to $250,000 by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States Government. As a service-oriented not-for-profit, our goal is to serve members, not wealthy shareholders. That’s because we believe members are more valuable than profit.
Members Credit Union’s History
In 1953, twenty employees of the McLean Trucking Company formed McLean Employees Credit Union, a financial cooperative, for the benefit of fellow employees. We have experienced many changes over the years, yet our credit union philosophy has never altered. It is still our mission to provide the best and most current financial services and products to our members at reasonable costs. By adhering to our original philosophy, our credit union has grown from its initial membership of 20 members and one sponsor company to over 50,000 members and more than 400 sponsor companies.
Members Credit Union is dedicated to improving the financial well-being of our members. Our mission is to serve every member well, including those of modest means. Our philosophy is that every member counts regardless of financial status.
The Difference between Credit Unions and Banks
Credit unions are not-for-profit financial cooperatives who exist to serve their members, not to make a profit. Each credit union member is an equal owner with one equal vote. Unlike banks, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees. Our credit union is governed by a board of directors, elected by and from the credit union’s membership. Board members serve voluntarily without pay or exclusive benefits.
Credit Unions Pay Taxes
You may have heard that credit unions are not taxpayers. That’s not true. Credit unions do pay taxes – payroll taxes, real estate taxes, and some property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998 in HR 1151, the Credit Union Membership Access Act, which states: “Credit unions, unlike other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means.”