How are credit unions different from the banks?

There are many differences between banks and Credit Unions. The most important is that Credit Unions are democratically run by the people they serve - their members. A Credit Unions' primary commitment is to serve their members financial needs, whereas banks and trust companies exist to earn dividends for shareholders.

What is a credit union?

Credit unions and Caisse Populaires are co-operative financial organizations that are owned by the people they serve - their members (customers). Credit Unions provide a wide range of products and services.

How do Credit Unions operate?

Each Credit Union operates independently. Policies and procedures are set and monitored by a volunteer Board of Directors. The day to day operations of the Credit Union are the responsibility of the CEO. The demonocratic stucture of the Credit Union is what makes them unique. Each Credit Union member has one vote and an equal share in the management and direction of the Credit Union.

What is the history of Credit Unions in Canada?

Credit Unions have been serving Canadians since 1900, when the first Caisse Populaire was established by Desjardins in Quebec. Ontario's first Credit Union was founded in Ottawa in 1908. Most Credit Unions were established in the 1940s and 1950s in response to the need for affordable consumer credit.

Goderich Community Credit Union was established June 1954.

How are dividends (interest) calculated on savings accounts?

Dividends (interest) are calculated on the minimum monthly balance from October to September and are posted annually each November.

What interest rate is paid on the savings account?

The rate of interst paid is determined on the profits of the Credit Union at yearend (Sept 30).

What interest rates have been paid on savings accounts in previous years?

Year	Interest Rates
2009	1.50%
2008	2.75%
2007	3.00%
2006	2.75%
2005	2.15%
2004	2.00%

How long will it take to approve my loan application?

If we have all the information that is required, we can approve your application immediately.

Is my loan application approved by the Board of Directors?

No. All applications for loans and mortgages are reviewed and approved by the lending department. Personal information gathered to make a credit decision is strictly confidential.

Can anyone join a Credit Union?

Yes! in fact, more that 1.6 million Ontario residents put their trust, and their savings, in credit unions. The members of a Credit Union are united by a common bond of assocation--such as the community, their profession, religion or ethnic background.

Do I have to pay a membership fee to join a Credit Union?

As a Credit Union member, you are also a shareholder and must own a minimum number of shares. At Goderich Community Credit Union each share is valued at $5. Members 19 years and older must have 10 shares or $50 on deposit, while members 18 years and younger must have 4 shares or $20 on deposit. After one year, member shares are 100% redeemable.
No interest is paid on member shares.

How are Credit Unions regulated?

Credit Unions in Ontario are regulated by the Financial Services Commission of Ontario, in accordance with the government's Credit Unions and Caisse Populaires Act.

Is my money safe in a Credit Union?

Credit Unions are among the soundest financial institutions. The Deposit Insurance Corporation of Ontario (DICO) insures Canadian currency deposits to a maximum of $100,000 per individual. Joint and trust accounts are also insured to a maximum of $100,000 and unlimited coverage for registered plans.

For more information on deposit insurance coverage, please ask for a brochure at the credit union, or call DICO at 1-800-268-6653 or www.dico.com.