NFCU Navy Federal Credit Union
Credit unions are different from commercial banks because the ultimate goal of the latter is to gain profits for the bank owners while the ultimate goal of credit unions is to provide the service needed so that the customers achieve economic freedom. This is the reason why extra funds earned by the credit union are turned into either dividend for the customers or money that will finance lower loan rates. With this setup, people are more inclined to have their finances managed by credit unions rather than by commercial banks. And when it comes to choosing among credit unions, it is a sound decision to invest in the world’s largest, which is the Navy Federal Credit Union.
The Navy Federal Credit Union started as a savings club in 1933. It was an unlikely time to begin such an organization because the whole country is suffering from economic depression, yet the concept of co-ownership appealed, prevailed, and expanded. Since then, the Navy Federal Credit Union acquired a broad base of membership, transforming it into one of the most robust financial institutions. By the close of the year 2007, the Navy Federal Credit Union has more than $33 billion in assets and nearly $24 billion in member savings.
Despite the implication of its name, “navy,” a person need not directly serve in the U.S. Navy to become a member of the Navy Federal Credit Union. This large credit union welcomes other people. The official website at www.navyfcu.org/ clearly describes how a person can be eligible for membership. And one important aspect of membership eligibility is family. That is, if one person is already a customer of the credit union, the members of his or her family, including household members, adopted children, and stepchildren, are automatically eligible.
When a person becomes a member of the Navy Federal Credit Union, he or she is entitled to several products and services. One is the free checking account that comes with a debit card. Unlike other commercial banks, the Navy Federal Credit Union offers the debit card free. For convenient handle finances, the customer gets a free online account management. Visa and MasterCard credit cards are also offered and the good news is that these credit cards have low APRs (Annual Percentage Rates). The other services of the Navy Federal Credit Union, such as car loans, equity loans, and mortgages, also have low rates.
The members of the Navy Federal Credit Union are assured that this financial institution will continue to remain stable and growing in spite of the plummeting real estate market and threats of depression. The President, Cutler Dawson, points out four major reasons that kept the Navy Federal Credit Union strong. First, the Navy Federal Credit Union does not get involve in subprime lending. Second, this credit union only utilizes shrewd and rational practices in underwriting. Third, the Navy Federal Credit Union has ensured a position of strong liquidity. And fourth, this credit union disseminates key information that will guide the financial decisions of their members.