Session 9 — Credit Unions (Spotlight: VyStar, Jacksonville)
Member-owned, not-for-profit financial co-ops. Similar products to banks, different ownership & tax status. Deposits insured by NCUA (like FDIC for banks) up to legal limits.
TL;DR — Credit Union vs Bank
- Ownership: Credit unions are member-owned; banks are shareholder-owned.
- Insurance: CU deposits insured by NCUA up to $250,000 per owner, per category (similar level to FDIC at banks).
- Field of membership: You must be eligible (residence/employer/association). Many CUs now have broad community fields.
- Pricing: CUs often aim for lower fees / better loan rates; banks often offer broader products, big networks.
1) Basics — What is a Credit Union?
Definition
Member-owned, not-for-profit financial cooperative. Profits are returned to members via rates, lower fees, and services.
How it differs
- Banks: for-profit, shareholder-owned, FDIC insured.
- Credit unions: not-for-profit, member-owned, NCUA insured.
Products & Services
- Deposit accounts (share drafts/checking, savings, CDs)
- Loans (auto, mortgage, personal), credit cards
- Online & mobile banking, ATMs, bill pay
2) NCUA Insurance (like FDIC but for CUs)
The National Credit Union Administration (NCUA) insures deposits via the National Credit Union Share Insurance Fund (NCUSIF). Standard coverage is $250,000 per owner, per insured credit union, per ownership category (single, joint, certain retirement, revocable trust, etc.).
Common categories & limits
- Single: $250k per member-owner
- Joint: $250k per owner
- IRA/retirement: $250k per owner
- Revocable trust: $250k per owner per eligible beneficiary (rules apply)
Classroom simplification; see NCUA’s estimator for exact rules.
3) Field of Membership
Credit unions serve members who meet eligibility criteria: where you live/work/worship/go to school, your employer, or certain associations. Many have broad community charters.
Joining tips
- Check your local CU websites for eligibility lists.
- Some allow joining via a small donation to a partner association.
- Bring ID and proof of eligibility; open a share (savings) account to establish membership.
4) Spotlight: VyStar Credit Union (Jacksonville, FL)
Quick profile
- Founded: 1952 as Jax Navy Federal Credit Union (NAS Jacksonville); rebranded to VyStar in 2002.
- HQ: VyStar Tower, 76 S. Laura St., Jacksonville, FL 32202.
- Scale: Among largest U.S. credit unions (≈13th in 2024), 80+ branches, assets > $14B (teaching scale).
- Insurance: Federally insured by NCUA (NCUSIF).
Use this profile for local examples in class discussions.
What to look for
- Field of membership: counties/communities served
- Rates & fees: compare to local banks
- Digital tools & ATM network coverage
5) Debate — “Credit unions are always better!”
Side A — “Always better”
Lower fees, better loan rates, community focus. Why not choose CUs 100% of the time?
Weak spots
- Some CUs have smaller networks/fewer products; rates/fees vary.
Side B — “It depends”
Both offer insured deposits and similar products; the better choice depends on your needs, eligibility, and specific pricing/service.
6) Mini Tools
NCUA Coverage (toy)
Covered (toy):
Toy math for class intuition only; real rules are detailed.
Eligibility Checker (toy)
Result:
Rate Compare (toy)
Year-1 interest saved (toy):
7) Quick Quiz
Q1. NCUA coverage limit per owner, per category is:
Q2. Credit unions are insured by:
8) Homework — Credit Union Lab (250–400 words)
- Pick two local credit unions (one can be VyStar) and one bank. Compare one product price (e.g., auto loan APR) and one fee.
- Use the toy NCUA calculator to sketch how a household could structure accounts to stay fully insured.
- Explain when a CU is clearly better for a student like you—and when a bank might win.
Educational simplifications; not legal advice. Numbers are classroom approximations; verify current details on official sites.