As a not-for-profit financial services cooperative, credit unions are known for supporting local small businesses. They also help strengthen local economies through loans for businesses and homeowners.
Alaska USA Federal Credit Union was founded in 1948 — 11 years before Alaska became a state. It now has branches throughout the country and a growing number of international locations.
1. Better Rates for Members
A credit union’s focus on its members means they can offer competitive deposit and loan rates, reduce and eliminate fees, provide state-of-the-art online banking services, and have a commitment to exceptional member service. These are all reasons why many Alaskans choose to bank at their local credit union.
Credit unions like Northrim offer a variety of savings and checking accounts, credit cards, debit cards, and mortgage loans. These are all designed to help local families and businesses thrive.
Despite changing its name, Global continues to serve members who live and work across Alaska, the Pacific Northwest, San Bernadino County in California, and Maricopa County in Arizona. You can even join Global if you live in Washington, Idaho, or on U.S. military installations in Italy.
2. Higher Savings Rates
Credit union members save more than $5 billion a year thanks to higher rates on savings, interest checking and money market accounts. Auto loan rates are significantly lower at credit unions, and unsecured and credit card loans are also cheaper.
The economy is strong, and that’s reflected in Alaska credit union growth. The state’s largest credit union, Alaska USA, saw a 2 percent increase in its second quarter total assets compared to the same period last year.
During the federal shutdown, many Alaskans are relying on their local credit unions for assistance. Alaska has one of the highest concentrations of federal employees in the country, so it’s not surprising that credit unions are working on a case-by-case basis to help these workers during this difficult time.
3. Higher Loan Rates
In addition to offering better savings and credit card rates, many Alaska credit unions also offer lower loan rates than banks. These loans can help families, businesses, and farmers who otherwise would not be able to get financing from large banks.
Credit unions focus on the well-being of their members rather than making profits for stockholders. This philosophy makes them more customer-centric, as they can reduce and eliminate fees, provide state-of-the-art digital banking services, and offer competitive deposit and borrowing rates.
Unlike most banks, which serve a broad population over a large geographic area, credit unions often have a limited field of membership. Wailuku Federal Credit Union, for example, only serves people who live, work, worship, or go to school in their local community.
4. Stronger Local Businesses
Credit unions have long played an important role in helping local small businesses. Typically, CU’s offer more flexible loan terms and financial counseling services. Moreover, they can be a source of funding for momentary business requirements or as a way to control cash flow.
For instance, a CU can provide a line of credit to an Alaska business that gives access to funds without paying interest until the business uses the money. This allows the business to better manage cash flow and deal with unforeseen expenses.
This is exactly what a federal employee in Sitka did when he started the Alaska Pulp Corporation Credit Union. His efforts paid off, and the credit union now has members in all 50 states and 20 foreign countries. In fact, it recently changed its name to Global Credit Union to reflect this growth and an updated charter allowing anyone working for the Department of Defense worldwide to become a member.
5. Stronger Communities
Credit unions collaborate with a variety of local organizations to provide financial education and counseling services for residents. This helps them better understand the needs of their communities, which in turn allows them to deliver a more personalized service.
For example, Alaska USA Federal Credit Union encourages federal employees that are impacted by the shutdown to call or visit their local branch to talk about their options. The lender will work with them on a case-by-case basis to allow for loan payments to be deferred, lower or more manageable interest rates, and other flexible repayment terms.
Small businesses are the lifeblood of any community, and credit unions help them thrive by offering a range of affordable business loans and services. These help boost productivity, stimulate innovation and strengthen the economic stability of a community.
