Throughout life’s journey, St. Thomas Federal Credit Union is here to help you reach your financial goals. Money 101 is our ongoing education series—built for the people of the Virgin Islands—to show practical ways to get the most out of your money so you can get the most out of life.
In the Virgin Islands, we’re used to seeing big banks. For many of us, “going to the bank” is just what you do when you get your paycheck or need a loan. But there is a different way to manage your money, one that has been part of our community for years, yet remains one of the Virgin Islands’ best-kept financial secrets: the Credit Union.
If you’ve ever wondered what the real difference is between St. Thomas Federal Credit Union (STTFCU) and a traditional bank, the answer isn’t just about where you keep your money. It’s about who actually owns the keys to the building.
Here are some of the fundamental differences between a credit union and a bank, and why keeping your money at a credit union may be more beneficial in the long run:
At a Credit Union, You’re Much More Than a Customer
The big difference between credit unions and banks starts with a simple question: Who does this institution work for?
Banks are for-profit businesses. Their primary goal is to maximize profits for their outside shareholders. In that model, you are simply a customer and a source of revenue.
Credit Unions like STTFCU are not-for-profit, member-owned cooperatives. In other words, credit unions weren’t established all the way back in the 1850s to make a profit for strangers. Credit unions were formed to help workers pool resources and to provide neighbors with affordable and safe financial services.
When you open an account at STTFCU, you aren’t just a “customer.” You become a member-owner, and our “shareholders” are the very people who walk through our doors every day.
Better Rates and Lower Fees Through Reinvestment
Because credit unions don’t have to pay out dividends to outside investors, we do something different with our profit: We give it back to you.
We call this reinvestment, and this is how credit unions like STTFCU are able to offer:
- Higher returns on your savings
- Lower rates on loans (like our Carnival loans with rates as low as 8%)
- Lower fees across the board
Think of a credit union as a financial circle where the money stays within the membership to help everyone rise together.
Modern Tech with a Local Heart
There is a common myth that you have to choose a big bank to get modern technology. At STTFCU, we believe you should have the best of both worlds. We offer everything you need to manage your money on your own terms, including:
- A user-friendly mobile app and online banking
- Person-to-person payments and online loan tools
- Extended phone service to ensure you can reach a real person when you need help
At a credit union, you get the technology and convenience of a global bank with dedicated service from a neighbor who actually knows you.
Your Money is 100% Safe at a Credit Union
Some people worry that credit unions somehow aren’t as “official” as banks. Rest assured, your money is just as safe at a credit union as it is anywhere else. While banks are insured by the FDIC, credit unions are insured by the NCUA (National Credit Union Administration). Both provide the exact same level of federal protection: your deposits are insured up to $250,000.
We Invest in St. Thomas, Not Wall Street
A bank’s success is measured by its stock price. Our success is measured by the strength of our home. STTFCU is deeply woven into the fabric of the islands. Whether we are celebrating Senior Day in the lobby or jumping for Carnival, we are here because this is our home, too.
Our commitment to the community is real and tangible. We take pride in programs like:
- The STTFCU Scholarship Program: This fantastic program supports graduating seniors from the community who are heading to college or a career technical school. And, we’re currently accepting applications to help our young scholars achieve their dreams!
- Community Give Back Grants: We recently awarded $20,000 in grants to local nonprofits making a real difference, including Love City Strong VI (disaster resilience), Patient Access VI (healthcare access) and the St. Thomas Baseball Explorers (youth sports).
Join the Family
When you choose a credit union, you are choosing to keep your money local. You’re also choosing better rates, lower fees and a financial partner that sees you as an owner, not just a transaction.
Are you ready to experience the credit union difference? Stop by the branch and let’s talk about how we can help you manage your emergencies, grow your savings and build a brighter future for your family and our islands.
Stay tuned to this website for more helpful Money 101 articles that will help you achieve your financial goals.