Catholic Federal Credit Union

Robert Adams, CEO of Catholic Federal Credit Union in Saginaw, Mich., quickly responded to NAFCU’s request for CU Difference stories by highlighting the many different programs that set CFCU apart from banks. “I think it’s important for all credit union CEOs and employees to know the difference between themselves and other financial institutions,” says Adams.

The programs at CFCU are offered to a large field of membership that includes over 21,000 members from 11 different Michigan counties. Programs offered include student scholarships, donations to community programs, informational programs geared toward age 50+ membership, youth financial literacy and many others.

Some of the programs offering a more prominent difference between credit unions and banks are listed below:

Monsignor Forbes Scholarship. Every year the Catholic FCU Board of Directors set aside a percentage of the credit union profits to be used for educational scholarships. The Monsignor Forbes Scholarship was originated in 1982 and has since contributed over $425,000 to almost 800 students. The Scholarship Committee reviews each application submitted by college-level students and looks for the financial need, educational/occupational goals, grade point average and other required information. For the 2004 scholarship year the Committee awarded $76,750 to 151 students.

Community Relations Committee.  The committee has been in existence since 1990 and has donated over $130,000. This Committee is made up of volunteer members that belong to Catholic Federal Credit Union who research Saginaw/Bay City/Midland area groups such as The Under Ground Railroad, The City Rescue Mission, Habitat for Humanity, Bay County Women’s Center and many others that request funding. These organizations must provide IRS documentation showing that they have been declared a 501 (c)(3) tax-exempt, non-profit organization. In 2003 the Community Relations Committee donated $20,000 to area organizations and plans on donating another $25,000 for the year 2004.

Today and Tomorrow (TAT).  TAT is a free program for credit union members ages 50 or more. Since the late 1970s, TAT has provided helpful consumer information, financial services and leisure opportunities. By offering these services and benefits today, CFCU and TAT hope to make their members’ tomorrow's better.  Included in these free services are free phone transfers, low-cost money orders, free seminars and two free luncheons throughout the year where 400-500 members attend.

Bee Saver’s Kids Club. CFCU developed the Bee and Honey Bee Accounts for children up to 12 years of age to teach them about the importance of saving money. By opening one of these accounts, parents will be giving their children a hands-on money management experience that will stick with them into adulthood. The minimum balance is $5 and each child receives a “bee” card to record each deposit he or she makes. After 10 deposits, the Bee Club member will receive a “bee” t-shirt or a choice of something else from the Bee Club items.

Nouvel Catholic Central School Branch. CFCU, in conjunction with the school administration at Nouvel Catholic Central High School, opened a school branch in 2003. Once a week, CFCU member representatives visit the high school so students, faculty and staff can make deposits, transfers, withdrawals, etc. CFCU also provides information on all products and services to fit the financial needs of high school and college students.

Loan services. CFCU offers members small monetary loans ($100, $500, $1000 or any number in between). The member can pay on their loan as often as they wish – daily, weekly, monthly. There is no penalty for paying a loan off early.

Overdraft line of credit. CFCU has overdraft lines of credit available for its members. An application must be completed and approved, but the lines of credit are available for as little as $100 or as much as $5,000. The member will only pay interest on the money that is owed.

Free notary services. CFCU does not charge its members for notary services. The credit union has over 25 trained notary publics available throughout four branches. The credit union also offers free signature guarantees. 

Free checking accounts. CFCU does not require members to have a minimum balance to keep their checking account open. Debit cards, convenient ATM locations and online banking are available to access members’ share accounts.

Adams says that in his almost 39 years with CFCU that the main difference between credit unions and banks is philosophical -- credit unions are trying to help their members. “A good chunk of our income goes to scholarship programs. You won’t find that at a bank,” says Adams.