About American Teachers Credit Union
Credit unions are not-for-profit organizations that exist to serve their members, individuals who have accounts with the credit unions. Credit union membership is limited by federal law to a segment of society. This segment may be individuals who work for a local, state or federal government, or it can include individuals in a particular field such as teaching. Many states charter credit unions, and those that do not still have federal credit unions within their borders, meaning there are credit unions in all 50 states.
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History
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Credit unions began in the 1850's in Europe and quickly spread across Europe. The first credit union opened in the United States at the beginning of the 1900's. Credit unions, unlike banks, are not-for-profit. Unlike a traditional bank, credit unions function to serve their members rather than shareholders. This traditionally means that they can offer cheaper services and higher rates of return, but they do not make as large of a profit as a traditional bank. Generally, this means that loan interest rates are lower, and dividend payouts and returns are higher than a traditional bank.
Function
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Credit unions serve only a segment of a population. Credit unions may be chartered by either the Federal Government or state governments, but they must serve a particular segment of the community. Some examples of segments served are students of a particular school, employees of the local government, members of a church or non-profit, or employees of a specific profession. Teachers' credit unions thus serve a wide segment of the population tied together by virtue of being a teacher. Credit unions also typically allow family members to maintain accounts on the basis of one family member's eligibility. Generally, if a person was part of a segment and opened an account at a credit union, then ceased to be a part of the segment of the population eligible to open an account, their account may be maintained despite no longer being part of the eligible class. For example, if a teacher joined a teacher's credit union--then quits being a teacher--the ex-teacher may maintain her credit union account.
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Size
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Credit unions traditionally served only a small segment of the population. Recently, mergers of credit unions--along with increasingly large definitions of segments of the population served--have allowed a single credit union to serve a large number of members. The largest credit union in the United States is the U.S. Central Federal Credit Union, which serves other credit unions, but it does not serve individuals. The largest consumer (non-corporate) credit union in the United States is the Navy Federal Credit Union. It's open to any member of the military or Department of Defense employee and their families. The Navy Federal Credit Union has over 3 million members.
American Teachers Credit Unions
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Many credit unions target teachers as the segment of the population that they serve. These may be specific teachers' credit unions or may be state employees' credit unions. Some examples of that are the Teachers Credit Union in Indiana and Michigan, as well as the Texas Trust Credit Union. Credit unions exist in all 50 states and generally serve members in only a few states.
Credit Unions in Your Area
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Many credit unions have list of employers who are eligible for membership. If you are unsure whether your employer offers membership to a credit union, human resources should know. Further, many credit unions are open to membership based on working or living in a particular city or county. Below are links to search for a credit union by area and segment of population served.
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