Smarter Banking with
Logix Federal Credit Union

Simply put, a credit union is a financial institution that operates on a not-for-profit basis and is owned and controlled by its members. Unlike traditional banks, which aim to generate profits for shareholders, credit unions focus on providing excellent financial services to their members. Their foremost mission is to prioritize the financial well-being and interests of their members above all, rather than pursuing profits for external stakeholders. Within this framework, they offer a wide range of products and services, from savings accounts and spending accounts to auto loans, personal loans, business services and mortgages, among others.

Imagine if the customers of a bank were also the owners of a bank. That's comparable to how a credit union operates. A credit union is a not-for-profit financial institution that operates solely for the benefit of its membership. And a Federal Credit Union, like Logix, is also regulated and supervised by the National Credit Union Administration (NCUA), which is similar to the FDIC or traditional banks.

While credit unions and banks offer most of the same financial services, the most important difference is a profit motive. A bank operates with the motive to make a profit for its owners. A credit union has no such motive because the people who use the financial services offered by a credit union, known as "members" instead of customers, are also the owners – each one with an owner vote about the direction of the credit union. In practice, the lack of a profit motive results in better rates and fewer fees, on average, than at banks. There are other differences, too. For example, a credit union has a defined body of membership, is regulated by the NCUA, and cannot sell stock to raise capital.

Yes! While non-profits are usually found in the IRS tax code 501(c)3, state chartered credit unions are 501(c)14 and federal credit unions, like Logix, are 501(c)1. Find out more on the IRS website.

We encourage you to ask any search engine this question: "Do credit unions offer better rates and fees than banks?" Don't take our word for it. Because credit unions do not need to make extra profit to pay stockholders, they offer better rates and fewer fees, on average than banks. Here's what Investopedia says: "Credit unions tend to have lower interest rates for loans and lower fees."

Your deposits in a credit union are federally insured by the National Credit Union Share Insurance Fund, an arm of the NCUA. This insurance is similar to coverage offered by the Federal Deposit Insurance Corporation (FDIC), and both are backed by the full faith and credit of the United States government. Your combined savings, money market and checking balances are insured up to $250,000. Your combined IRA balances are insured separately up to an additional $250,000. You may obtain additional coverage on multiple accounts you have with Logix if you have different ownership interests or rights (and you properly complete account forms and applications).