Credit unions are not like other financial institutions, and there is a real difference in this distinction.

People who have loans, savings or checking accounts at credit unions will be the first to tell you that credit unions are not the same as the big national and international banks that are all over the landscape. You’ll hear about better rates and friendly service. These folks will also talk about the type of accessibility and accountability at an institution that is owned by people who live in New Hampshire.

What you may not hear about is the deep fundamental differences in the structure and design of credit unions that produce the many benefits that credit unions bring to individual consumers. “So what? What do I care about structure if I’m getting the best deal?” There is a simple answer to that question. When good consumer value is a matter of the core philosophy of an organization as opposed to a promotional come-on, it means that you can count on that value being there today, tomorrow and for years to come.

So what makes credit unions different and how does that impact consumers and the communities that they live in? Let’s start with a quick look at the definition of a credit union. The most commonly used definition of a credit union is “a not-for-profit, democratically controlled financial cooperative.” By taking apart the individual components of that definition, we can learn a lot about credit unions and their benefits.

Not for profit

The credit unions’ not-for-profit status distinguishes the credit union as a business that exists to do something other than make a profit for stockholders. The purpose of credit unions is to provide high-quality, low-cost financial services. As opposed to the purpose of for-profit institutions is to generate profit. If they provide good products and services while doing so, it’s an added benefit.

Because credit unions are not-for-profit, revenue - ordinarily handed to third-party owners as corporate profit - instead is returned to members by improving product, price, and service. Given the Wall Street-driven financial meltdown and bank bailouts, this aspect of the credit union difference is particularly appealing.

Democratic control

Perhaps the least understood component of the difference is the idea of democratic control. While it’s powerful and important, the notion that a consumer has the opportunity to have his or her voice heard at a financial institution is outside the experience of most consumers. Democratic control ensures that the credit union will be run for the benefit of all its members.

Democratic control makes the credit union a part of the community it serves rather than another profit opportunity for third-party investors and traders. Credit union members, who determine the future of the credit union, have no better use for its capital than to continue the credit union’s mission of service to the community.

Stockholders who own the bank, however, are always looking for ways to make the bank more profitable, including merging or selling out of a market. In an era when a small number of insiders make decisions for the huge national and international financial conglomerates that affect so many, the credit union model has great natural appeal.

Financial cooperative

The last of the three core components of the definition is the idea of the credit union as a financial cooperative. This part of the credit union identity is worth taking an extra look during 2012, which has been named the “International Year of the Cooperative” by the United Nations.

A cooperative business is established to benefit all its members/owners. This notion has been with the credit union movement since its inception.

Credit unions are the most successful and widespread cooperative businesses in the U.S. This form of ownership provides a useful and essential check on the conglomerates exercising increasing control over retail commerce. Businesses run by and for the people who use them, set pricing and service benchmarks benefit all consumers.

New Hampshire is served by a number of outstanding credit unions. If you are not a member of a credit union, visit online at www.gocu.org to find a credit union near you and explore the benefits that they can provide for you and your family.

Rob Kimmett is senior vice president of marketing for the New Hampshire Credit Union League.