If you're a resident of North Carolina and looking for a credit union that can offer you a wide range of services, SECU, one of the largest credit unions in the country, might be your answer. It offers many of the same services as a large bank, but with an added twist -- members are also owners in the credit union.
What is SECU?
SECU, also known as State Employees' Credit Union, is a credit union located in North Carolina. It was founded in 1937 with just 17 members and $437 in assets, but is now one of the largest credit unions in the United States, with 2.7 million members, 274 branch locations, and $50 billion in assets.
SECU is a not-for-profit cooperative financial institution that is owned by its members. As a result, it's involved in a number of local initiatives, including the SECU Foundation. The SECU Foundation funds projects that promote local community development, including scholarships, housing initiatives for teachers, and career development programs.
Who can join SECU?
Like most credit unions, SECU offers membership to a limited range of people. SECU specifically is targeted toward people who work for the state of North Carolina, serve on public boards of education in the state, and are employees of associations that were formed for the benefit of state employees. Immediate family members are also eligible.
This includes, but is not limited to:
- Employees of the state of North Carolina.
- Federal employees who work at North Carolina state agencies.
- Members of the North Carolina National Guard.
- Employees of Social Services, Health, Mental Health, and Civil Defense of North Carolina counties.
- Employees of agencies formed for the benefit of state of North Carolina Employees.
- Employees of Blue Cross/Blue Shield of North Carolina, Inc.
- Employees of BCBSNC Credit Union.
- Immediate family members of eligible employees.
What services does SECU offer members?
Because SECU is so large, it can offer a great variety of services to its members. This includes basic banking services like checking and savings accounts, money market accounts, personal loans, mortgages, home equity lines of credit, and auto loans, as well as investment and estate planning.
Members benefit from generally lower-cost services, including a $1 per month maintenance fee for a checking account, which goes directly to the SECU Foundation. With more than 2.7 million members, those dollars add up quickly and are able to be distributed to North Carolina communities through scholarships, teacher housing assistance, and financial education.
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Is a credit union a bank?
Although a credit union offers many of the same services as a retail bank, they tend to have very different motivations in mind. Banks are for-profit institutions that lend money and offer interest-bearing savings products to customers. The money that banks make is intended to go back into the bank's business, which is generally owned by a corporation. From there, shareholders may be paid dividends, but customers reap no rewards.
In a credit union, the goal is to improve the financial lives of the members, who are all owners of a not-for-profit institution. Credit unions may lend more readily to members, often at better rates, and pay higher interest rates when possible.
Like banks, credit union deposits are insured but through a different agency. Just like bank accounts are insured through the Federal Deposit Insurance Corp. (FDIC) for as much as $250,000, the National Credit Union Administration (NCUA) insures credit union accounts for $250,000 in case of a credit union failure. The NCUA only insures deposits, so more complicated financial products may not be covered. Always ask about what's insured and what isn't when investing.
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