CUANM FAQ
FAQs about New Mexico Credit Unions
The Credit Union Association of New Mexico’s mission is to help credit union members. Use this page to find out more about New Mexico credit unions. You can find a credit union, learn about the benefits of credit union membership, find an ATM or branch state- or nation-wide, and much more.
If you have questions or need information you can’t find here, please contact us.
What is a Credit Union (CU)?
A credit union is a member-owned, not-for-profit cooperative financial institution formed for the purpose of encouraging savings by offering a fair return, using those savings to make loans at competitively low interest rates to members, and providing other financial services. Members are united by a common bond of association and democratically operate the credit union under state or federal regulation.
Not-for-profit
Most financial institutions operate to make a profit for stockholders. Credit unions return their profits, after expenses and reserves, to members in the form of dividends on savings, low rates on loans, and new or improved services.
Member-owned
At credit unions, no one person or organization runs or owns the credit union. Each member is an owner. In fact, each member has one vote in electing the unpaid volunteers from among the membership who serve on the board of directors and on other committees.
Safety and soundness
Credit unions are insured up to $250,000 by the National Credit Union Administration (NCUA), an agency of the federal government, and meet high standards of safety and soundness.
Volunteers
Hundreds of thousands of people volunteer their time each year to credit unions on boards of directors and in other capacities. Their efforts exemplify the credit union philosophy of “people helping people” and contribute to credit union success.
Consumer education
Credit unions continually provide their members with valuable financial information. The importance of regular savings for college, retirement, monthly budgeting, and current consumer issues are communicated to members through periodic publications, and ongoing seminars and workshops.
Common bond
A common bond unites credit union members and creates a feeling of obligation within the membership to take responsibility for their financial actions. In fact, members save money together and make low-cost loans to each other for worthy causes at low rates of interest.
Credit unions are generally sponsored by companies, churches, fraternal organizations or other groups with similar interests. Credit unions also exist for members of certain neighborhoods or communities. Many credit unions extend their membership to the families of current members and select employee groups.
There are more than 11,000 credit unions in the United States, serving more than 77 million members. In New Mexico, there are 52 credit unions with more than 629,000 members.
Who can join a credit union?
It’s likely that virtually anyone can find a credit union to join.
Credit union members generally share the occupation (same employment or line of work), residence (live or work in the same city, county or metropolitan area), association (same church, professional, civic or fraternal group, etc.) and family (membership is extended to you if any of your immediate family is a member). Federal and state credit union laws restrict credit unions to serving only the groups specified in their charters. The group or groups served by a credit union are referred to as its “field of membership.”
To see what credit union you can join, check our Credit Union Directory. Click on your community and you will see a list of local credit unions and their fields of membership. Search the list for your workplace, community and other qualifications.
How do CUs differ from banks?
Like banks, credit unions offer a full range of financial services. However, the similarity ends there. Here are the points that make up the credit union difference:
Not-for-profit — Credit unions are not-for-profit financial cooperatives. Credit unions exist to serve their members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to members in the form of lower loan rates, higher interest on deposits, and lower fees.
Taxation — Credit unions do pay taxes — payroll taxes, sales taxes, and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and re-affirmed in 1998 in H.R. 1151, the Credit Union Membership Access Act, which states:
"Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means."
Ownership — Credit unions are economic democracy. Each credit union member has equal ownership and one vote — regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner.
Volunteer boards — Each credit union is governed by a board of directors, elected by and from the credit union’s membership. Board members serve voluntarily.
Membership eligibility — By current federal statute, credit unions cannot serve the general public. People qualify for a credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.
Financial education for members — Credit unions assist members to become better- educated consumers of financial services. Additionally, credit unions, through the Credit Union National Association, are partnering with the National Endowment for Financial Education, a not-for-profit foundation, to expand financial education among high school students. A national study shows that just 10 hours of personal finance education can positively affect students’ spending and savings habits for a lifetime.
Social purpose — “People Helping People.” Credit unions exist to help people, not make a profit. A credit union’s goal is to serve all of its members well, including those of modest means — every member counts. Members are fiercely loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and employees to get involved in community charitable activities and worthwhile causes.
Why are credit unions tax-exempt?
Credit unions were granted their tax exemption because of their not-for-profit, cooperative structure and the benefits of cooperative service to society, because they are democratically organized generally managed by volunteer board of directors, and because their specified mission is to meet the credit and savings needs of their members, especially persons of modest means.
Early in the history of credit unions, the U.S. Attorney General declared state-chartered credit unions exempt from federal income taxes because they were “organized and operated for mutual purposes [in which an organization’s members share in the profits and expenses] and without profits.”
Later on, in the 1930s, legislators passed a law to exempt federally chartered credit unions from federal income tax for the same reason. Congress reaffirmed credit unions’ tax status as recently as 1998 in the Credit Union Membership Access Act.
Credit union services
Because each credit union is autonomous, the financial products and services offered vary. For example, while all of New Mexico’s credit unions offer savings accounts and consumer loans, many also offer a full spectrum of financial products and services such as dividend-bearing checking accounts, payroll deduction, direct deposit, automated teller machines (ATMs), credit cards, individual retirement accounts (IRAs), share certificates (similar to Certificates of Deposit, or CDs), money orders, traveler’s checks, home mortgage loans and much more. And best of all, credit unions are safe and sound. Deposits are federally insured up to $250,000 by the National Credit Union Administration, a U.S. government agency.
Credit union member benefits
Credit unions exist solely for the purpose of meeting the financial needs of their member-owners. To that end, credit unions not only provide outstanding personal service, but members often earn higher returns on their savings while paying lower rates for loans. Each year, credit unions consistently outshine banks in the area of consumer/member satisfaction.
Credit unions are based on a one-member, one-vote structure, thus giving members the power to direct credit union policy in an effort to meet member needs. This structure is vastly different from the for-profit sector, where stockholders vote according to the number of shares of stock they own. Their not-for-profit status enables credit unions to return more of their earnings to their members in the form of competitive loan and savings rates. For instance, credit unions usually charge lower interest on credit cards than most other providers, and many credit unions charge no annual card fee.
Credit Unions in the Community
An important part of credit unions’ philosophy and culture is to share their resources with the community. As a result, credit unions initiate or join with others to support community outreach programs in neighborhoods throughout the state, country and internationally.
Credit unions help underserved communities
Credit unions help provide services to low-income areas, often where no other financial institutions exist. This is important in a state like New Mexico where there are many small communities many miles from major cities.
The Credit Union Association of New Mexico and affiliated credit unions support a variety of projects to enhance low income community programs, to promote consumer financial independence and to improve financial literacy.
Credit unions throughout New Mexico yearly collect thousands of dollars and donations of canned and nonperishable food for local food pantries, volunteer at local organizations such as orphanages and schools, and hold fund-raisers for various community causes that help residents in need throughout the year. These activities are the way credit unions practice their mission of “people helping people.”
Partnering With UNM Children’s Hospital
Credit unions throughout the state are also actively involved with numerous local and national charitable organizations. One of the more significant initiatives associated with New Mexico credit unions is the Credit Union Association of New Mexico’s annual Silver Star Gala and Golf Classic that benefit UNM Children’s Hospital.
The state’s 52 credit unions have joined together in a pledge to help fund the construction and equipment of the a new pediatric emergency wing of the hospital and proceeds from the annual CUANM Silver Star Gala, Golf Classic and bowling go toward this five-year pledge. Individual credit unions also raise funds in other ways, such as by offering rebates on credit and debit card transactions and selling cookbooks and stuffed animals.
Dora Maxwell Award (The social responsibility recognition program for credit unions)
Credit unions participate in a wide variety of community outreach activities. They might include fund-raising for charity, making classroom presentations, sponsoring community activities, or loaning employees for a few hours a week to work in hospitals, retirement homes or shelters. Credit unions make a difference in your community. CUANM and credit union leagues and associations throughout the country honor these achievements through the Dora Maxwell award program.
Louise Herring Award (For philosophy in action)
Credit unions do an extraordinary job of incorporating a “people helping people” philosophy into day-to-day operations that sets them apart from other financial service providers. The Louise Herring Award Program for Philosophy in Action recognizes these credit unions for a job well done.
Eligible activities include provisions for the small saver or borrower; programs for youth, seniors or other groups that are often economically disadvantaged; programs that do an extraordinary job of encouraging thrift and provide a source of unbiased money management and consumer information; evidence of an exceptional degree of service.
Alphonse Desjardins Award
The Desjardins Award is named in honor of Alphonse Desjardins, the founder of the North American credit union movement. It considers all activities supporting the personal finance education of young members and nonmembers, including, but not limited to, face-to-face teaching, publicity, lobbying for curriculum requirements and teacher & volunteer training.
Providing educational opportunities in the classroom
Credit unions around the state work to improve the nation’s well-being by teaching the next generation of adults how to achieve financial security by managing money and credit wisely throughout the year.
During International Credit Union Week in October and National Credit Union Youth Week in April, as well as throughout the rest of the year, credit union volunteers go into classrooms throughout New Mexico to teach the money managers of the future about wise spending and saving habits.
Promoting Global Democracy
Credit unions are making an impact on the international level as well. Fifteen percent of every dues dollar paid by credit unions to their national association is devoted to international credit union development. This effort has already resulted in credit unions serving more than 112 million members in 93 nations across the globe. By bringing the benefits of alternative financial services to millions of people around the world, credit unions are helping international communities learn to attain self-sufficiency and economic freedom. Discover the work of the World Council of Credit Unions.
The Credit Union Association of New Mexico signed an international partnership agreement with Alianza, a Credit Union trade association in Mexico, to work toward promoting mutual growth and an exchange of knowledge. The cooperative alliance is a way credit unions practice their mission of “people helping people.” In addition, New Mexico credit union professionals have traveled to other countries to observe economy-building projects spearheaded by credit unions and lend their counsel, advice and support.
Offering Scholarships
People helping people secure the future of New Mexico today.
The New Mexico Credit Union Education Foundation offers and provides college scholarships to New Mexico students attending colleges, universities and technical-vocational schools throughout the state.
The New Mexico Credit Union Education Foundation is a unique scholarship program formed through special legislation that allows credit unions to use abandoned funds for educational or charitable purposes. Since it was established in 1992, the New Mexico Credit Union Education Foundation has presented hundreds of scholarships to students attending accredited vocational or technical school, college or university in New Mexico.
The New Mexico Credit Union Education Foundation is a unique scholarship program formed through special legislation that allows credit unions to use abandoned funds for educational or charitable purposes. Since it was established in 1992, the New Mexico Credit Union Education Foundation has presented hundreds of scholarships totaling almost a half million dollars to students attending accredited vocational or technical school, college or university in New Mexico.
The scholarship application process begins in November. The deadline for applications is in late February or early March.
Find out more about the NMCU Education Foundation Annual Scholarship
Learn about eligibility requirements and download an application.
You may also call or visit your credit union for an application.
The New Mexico Credit Union Education Foundation does not discriminate on the basis of age, race, creed, national origin or gender.
Shared Branching
Use other credit unions in other places
Through a cooperative effort between credit unions nationwide you can conduct business at shared credit union facilities. When you’re on the road, you can walk into any CU Service Center location and conduct business just like you do at your hometown credit union.
Shared Branching
Finding a New Mexico credit union
Locating an ATM
About CUANM
CUANM helps credit unions better serve their members…
The Credit Union Association of New Mexico is a trade organization that helps credit unions throughout the state address member needs through services, products, education and advocacy. First established in 1958, CUANM has been helping New Mexico credit unions help their members for more than 50 years.
Find out more about CUANM’s mission and services.
For more information on CUANM, its mission, products and services please contact Mary Beth King, CUANM communications coordinator: Email:
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| Phone: (505) 298-9899 or (800) 366-6628, ext. 2230.
