How a credit union makes money if they don’t invest out your money like banks do.
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If you deposit $16 in a bank, they can loan out $100
If you deposit $16 in a credit union they can loan out $16
However they are usually like a amazon partner store. the checks you write to pay your bills that are through Happy Valley CU are processed BIG MEGA BANK with your CU just getting a cut of the action. Big bank gets to loan out more money on the deposits and that means your CU can ‘borrow’ more to loan to its members to buy a house/car.
when I was a kid, banks had rows of desks with clerks taking the checks from merchant deposits to debiting/crediting and putting that check you wrote into a file drawer for your monthly statement, now its all electronic. a local credit union can’t do that. typically your deposit slips have a different routing number from your checks…that’s how you know.
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