Frequently Asked Questions
What’s a Credit Union?
A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.
Who owns a credit union?
Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investment. A credit union doesn’t operate in that manner. Rather, each credit union member owns one “share” of the organization. The user of credit union services is also an owner, and is even entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.
What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.
How do I become a member & open my account?
In order to become a member of Local Union 392 Federal Credit Union you must be a member of Plumbers, Pipe Fitters and M.E.S. Local Union No. 392, an employee of Pl, Pf, & M.E.S. Local Union No. 392 Fringe Benefit Funds,the Joint Apprenticeship Training Center, or a staff member of our Credit Union.
After it is determined that you are eligible to become a member of our Credit Union, we have policies and procedures that we must follow in order to properly open your account with us. The US Patriot Act of 2001 requires us to obtain and retain information about our members for identity verification purposes; therefore, we will need the following from you:
- Completed Signature Card (if not signed in person your signatures MUST be notarized)
- Completed Beneficiary Card
- Valid photo I.D.
After completing the above we will get your account(s) with us opened immediately!
Once YOU become a member, your immediate family members may also join.
How do the Vacation Fund Withholdings work?
As stipulated by the collective bargaining agreement, contractors withhold 8% of each employees gross wages. The vacation fund money withheld from your paycheck is deposited into your primary savings account at Local Union 392 Federal Credit Union. These deposits are made on the 20th of the month, or thereafter. If the 20th of the month falls on a weekend or holiday, your vacation funds will be deposited to your account on the following business day.
Vacation fund deposits are the previous month’s withholdings. For example, the vacation fund monies that you earned in January 2007 will be deposited into your primary savings account on February 20th 2007, or thereafter. **VACATION FUNDS ARE NEVER AVAILABLE PRIOR TO THE 20th OF THE MONTH**
Once your vacation funds are posted to your account, they are available for withdrawal or for you to let grow and earn dividends. Dividends are earned based on your account balance and are calculated on an average daily balance. Please note that there is a minimum balance requirement of $10.00 to keep the account open.
Are savings deposits insured?
Yes. Your savings are federally insured by the N.C.U.A. to at least $250,000, and are backed by the full faith and credit of the United States Government.