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Our Founding
Chartered
by the State of Minnesota as Farmers Union Employees' Credit Union, Heartland
Credit Union officially opened for business on January 3, 1939. Back in those
days it took just six or seven members to charter a credit union. W.S. Freeman,
Joyce Hanson, J.L. Kelly, Felix Mackey, Harvey Norby, Verne Robinson, and Adam
Vierling each bought one share for $5 at an organizational meeting held December
3, 1938.
At that meeting, the rate of interest on loans was set at one percent per
month or 12 percent annually. Each employee was limited to depositing $100 or
less, and could borrow no more than $25. At the close of its
first year, the credit union had 80 members with assets of $1,596.
In early 2004 Heartland Credit Union's charter was expanded to serve anyone who lives,
works, worships or attends school in Dakota County.
Today Heartland Credit Union serves over 10,000 members with assets exceeding
$73 million.
The History of Credit Unions
The first credit union cooperatives started in Germany over a century
ago. Today, credit unions are found everywhere in the world. The
credit union movement started in this country in Manchester, New
Hampshire. There, the St. Mary's Cooperative Credit Association, a
church-affiliated credit union, opened its doors in 1909. Today, one
in every three Americans is a credit union member.
A credit union is a cooperative, not-for-profit financial institution
organized to promote thrift and provide credit to members. Traditionally,
credit unions have 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.
People Helping People
Credit unions exist solely to serve the needs of their membership. This emphasis on people rather than profit makes them unique. Credit unions make for increased citizen participation and empowerment because people run these types of financial institutions rather than stockholders. This reinforces a spirit of independence and responsibility at a 'grass roots' level and helps bring communities closer together. Credit unions strive to improve the economic and social well being of all members and have been used to help against financial hardship and debt problems.
Credit unions who operate locally, can lead to more money being
retained in the area. This provides an array of benefits, such as
more money spent in local shops and on local services (meaning more
local jobs).
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Right Site?
Heartland Credit Union has offices in Minnesota and Iowa. If you are
looking for a different Heartland Credit Union online, check the following
links:
If you're not sure which credit union you're eligible to join,
check our Membership
page.
How Are Credit Unions Different?
Credit Unions are member-owned, volunteer directed, not-for-profit cooperatives dedicated to improving members' lives. As a result, deposit accounts generally receive higher dividends, loan interest rates are lower, and many financial services are provided free of charge.
Other financial institutions are owned by stockholders, guided by a compensated board of directors, and very much for-profit. This usually translates into higher prices on loans, lower rates of return on savings, and higher fees for many bank services.
Credit unions are the only democratically controlled financial institutions in the United States. Members elect a volunteer board of directors to oversee the credit union. The executive management reports to this board. Bank directors, however, are paid and legally bound to make decisions that benefit stockholders, not customers.
A credit union exists to serve a specific group of people, such as a
group of employees or the members of a professional or religious
group. This is called a "field of membership." The field of
membership may include where they live, where they work, or their
membership in a social or economic group. Click
here to view Heartland Credit Union's field of membership.
Benefits of Credit Union Membership
Credit union membership offers numerous benefits. Available services range from savings and checking accounts to home equity and vehicle loans to IRAs. Many offer electronic services such as Internet banking, bill pay and telephone banking. Study after study has revealed that on average, credit unions provide the best financial offerings with fewer fees lower rates on loans and higher rates on savings. And credit unions continually score higher than the other financial institutions in consumer satisfaction surveys.
Credit unions strive to deliver the best service possible to their most important asset - their members.
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