A credit union is a cooperative
financial institution, owned and controlled by the
people who use its services. These people are members.
Credit unions serve groups that share something in common,
such as where they work, live, or go to church. Credit
unions are not-for-profit, and exist to provide a safe,
convenient place for members to save money and to get
loans at reasonable rates.
Credit
unions, like other financial institutions, are closely
regulated. And they operate in a very prudent manner.
The National Credit Union Share Insurance Fund, administered
by the National Credit Union Administration, an agency
of the federal government, insures deposits of credit
union members at more than 11,000 federal and state-chartered
credit unions nationwide. All deposits in Mazuma are
insured up to $350,000 - the highest level of combined
federal/private share savings insurance available. This
coverage is available through the addition of excess coverage
from Excess Share
Insurance Corporation (ESI). ESI provides $250,000
on top of the $100,000 provided by the National
Credit Union Administration.
What makes a credit union
different from a bank or savings & loan? Like
credit unions, these financial institutions accept deposits
and make loans--but unlike credit unions, they are in
business to make a profit. Banks and savings & loans
are owned by groups of stockholders whose interests include
earning a healthy return on their investments.
The purpose of a credit union mirrors the old Chinese
adage, "Give me a fish and feed me for a day. Teach me
to fish and feed me all my life." Since the birth of the
credit union in 1849, credit unions determined that to
keep people economically free they must be taught to fish
- taught to save and borrow prudently.
Today, Mazuma continues to
educate its members and surrounding community about
investments. For example, Mazuma conducts educational
programs, "Teaching Teens about Money," at several local
high schools and partners with other Kansas City businesses
to host Personal Financial Empowerment seminars for Kansas
City residents. Mazuma also works with area elementary
schools to promote financial literacy among students.
Mazuma's Select Employee Groups, businesses that offer
Mazuma membership as an enhancement to their employee
benefits package, enjoy the monthly lunch-and-learns,
which teach members about a variety of financial topics,
such as car buying and credit reports. |
