What is a credit union?
How are credit unions different from banks?
Can anyone join a credit union?
Do I have to pay a membership fee to join a credit union?
Will my money be safe in a credit union?
How do credit unions operate?
How are credit unions regulated?
How do credit unions serve their communities?
What are some credit union innovations?
What is the history of credit unions in Canada?
What does the Hands and Globe logo represent?

Q: What is a credit union?
A: Credit unions and caisses populaires (the francophone counterpart to credit unions) are co-operative financial service organizations that are owned by the people they serve -- their members (customers). Credit unions provide a wide range of products and services, including:

• Savings and chequing accounts

• Personal loans and lines of credit

• Mortgages

• RRSPs and RRIFs

• Canada Savings Bonds

• Ontario Savings Bonds

• Mutual funds

• Term deposits

• Automated banking machines (ABMs)

• MasterCard credit cards

• MEMBER CARD® debit cards

• Traveller's Cheques

• Internet and telephone banking

• Retirement planning

Q: How are credit unions different from the banks?
A: There are many differences between banks and credit unions. But the most important is that credit unions are democratically run by the people they serve - their members. Credit unions' primary commitment is to serve their members' financial needs, whereas banks and trust companies exist to earn dividends for shareholders.

Q: Can anyone join a credit union?
A: Yes! In fact, more than 1.7 million Ontario residents put their trust, and their savings, in credit unions and caisses populaires. The members of a credit union are united by a common bond of association -- such as the community they live in, their profession, religion or ethnic background.

Q: Do I have to pay a membership fee to join a credit union?
A: As a credit union member, you are also a shareholder and must own at least one share in the credit union. Share prices differ from one credit union to another, but generally cost between $25 and $150 (a one-time investment). The Board of Directors reviews the financial results at the end of the year, and depending on those results, they may declare a dividend.

Q: Will my money be safe in a credit union?
A: Absolutely! In fact, credit unions are among Canada's soundest financial institutions. The Deposit Insurance Corporation of Ontario insures Canadian currency deposits, including interest, to a maximum of $100,000 per individual; and insures each separate RRSP, RRIF, or OHOSP contract and each unique trust or joint account to a maximum of $100,000 per account. These backup measures are so secure that no member of an Ontario credit union has ever lost a cent of his or her deposit.

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Q: How do credit unions operate?
A: Each credit union operates independently. Policies and procedures are set and monitored by a volunteer board of elected directors. The day-to-day operations are the responsibility of the general manager. The democratic structure of credit unions is what makes them unique. Each credit union member has one vote and an equal voice in the management and direction of the credit union.

Q: How are credit unions regulated?
A: Credit unions in Ontario are regulated by the Financial Services Commission of Ontario, in accordance with the provincial government's Credit Unions and Caisses Populaires Act.

Q: How do credit unions serve their communities?
A: Credit unions are community-based and community-focused. They play an integral role in local development by reinvesting their deposits and profits in the community as personal and business loans, mortgages and dividends paid on member shares. Credit unions make significant contributions to community events, education programs, bursaries and special projects.

Q: What are some credit union innovations?
A: Over the years, credit unions have taken the lead in developing and introducing financial service products. For instance, they were the first financial institutions to offer:

• Consumer loans

• Daily interest savings

• Automated banking machines

• Flexible mortgage payments

• Line of credit reverse mortgage

• Payroll deduction

• Socially responsible mutual funds

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Q: What is the history of credit unions in Canada?
A: Credit unions have been serving Canadians since 1900, when the first caisse populaire was established by Alphonse Desjardins in Quebec. Ontario's first credit union was founded in Ottawa in 1908. Most credit unions were established during the 1940s and 1950s in response to the need for affordable consumer credit.

Q: What does the Hands and Globe logo represent?
A: The Hands and Globe logo has symbolic and historic significance for the credit union movement. The cupped hands symbolize both the financial security and support offered by the international credit union network, as well as the fact that the success of the movement is in the hands of its members.

The globe symbolizes the worldwide scope of the movement and suggests the impact that a truly united movement can have on the financial development of all countries. The people within the globe represent the real focus of the credit union movement. It is the human element - the harmony of people working for people - that distinguishes credit unions from other financial institutions.

The Hands and Globe became the official World Council of Credit Unions trademark in 1966, and today it is the recognized credit union symbol in more than 70 countries around the world. The principles represented by this logo are timeless - as significant today as they were 35 years ago.

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