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Recommend Washington's Blog - REAL Capitalists Move Our Money from Big Banks to Credit Unions (Email)

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By Washington's Blog
Global Research, November 6, 2011

Believe in Free Market Capitalism?  Then Move Your Money!

Conservative free market entrepreneurial capitalist Karl Denninger notes:

If you have an account at a BANK, go move it to a CREDIT UNION.

You know, a place that you own and is a mutual association of people?

Yes. One that you own. Where the fees assessed go to provide services to…. you, not to feather the nests of bank executives and stockholders.

Denninger is right.

As HowStuffWorks points out:

Banks are for-profit companies. They make money by charging intereston loans, collecting account fees and reinvesting all that money to earn more profit. But as for-profit companies, they also pay state and federal taxes.

Credit unions, on the other hand, are not-for-profit institutions. Technically, credit unions are owned by their account holders, known as members. Any profit earned by a credit union is either invested back into the organization or paid out to members as a dividend [source: Federal Reserve]. As a not-for-profit institution, credit unions pay no state or federal taxes, meaning they can charge lower interest rates than banks for most financial services.


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