Credit Union: only for the "select" ones?

[space-time]

why do credit unions limit membership only to certain groups, usually based on employer? for example, this credit union has these requirements:

"You may open a share/savings account at the Credit Union if you are employed by any of our Select Employer Groups (SEGs)."

and of course, my employer is not listed there...

[Carm]

One theory is that they get a kickback from the employers. Another is that certain groups are "more" responsible.
EDIT:
**********************
From this site:http://www.members1st.org/SelectEmployerGroups.aspx

wrote: "How Your Business Benefits from Credit Union membership

Members 1st Federal Credit Union is here to work for you as your silent business partner, providing you with the right mix of products and services to help you manage your business finances.

When you become a Select Employer Group, you’ll enjoy a unique relationship with us including full use of our products and services as well as value-added benefits such as free on-site membership sign-ups at your benefit fairs and employee events. We’ll also provide speakers for lunch and learn programs, seminar and other educational opportunities. And, when you become a Select Employer Group, you can add credit union membership to your benefits package – a great enhancement for your employees that won’t cost you anything. We’ll even provide all the promotional materials including payroll stuffers, posters and articles.

To use our business services and become a Select Employer Group, your company or organization simply needs to provide us with a Letter of Intent indicating your interest in becoming a Select Employer Group. This is not a contract. It’s a behind the scenes administrative detail we need from you in order to open your account. Call us today and we'll walk you through this quick and easy process so you can begin to enjoy all that Members 1st has to offer.

Joe

[Mini 9]

because we are not communists?

[decay]

I joined this one, which has VERY simple requirements:

https://www.peoplefirstcu.org/

"If you live, work, worship, or go to school in Lehigh or Northampton Counties, or are an immediate family member of anyone who qualifies for membership, then you can take advantage of all that we have to offer."

[graylocks]

i just joined the Delta Community Credit Union this week and the guy talked a bit about the history of credit union. CUs used to be heavily regulated and could only be open to whatever group formed them. after all, in theory every member of a credit union is also an owner. sometimes in the 90s the regulations loosened as to what could define a 'group.' the credit union i joined used to be for Delta Airlines employees. they applied and were granted permission to widen their pool so now it includes Delta employees, employees from other airline related industries and residents of 11 counties in Georgia. every time they want to go into another county they have to apply to the state and the county. so their rules are not so much their choice but how the credit union charters began.

[Mac1337]

decay wrote:
I joined this one, which has VERY simple requirements:

https://www.peoplefirstcu.org/

"If you live, work, worship, or go to school in Lehigh or Northampton Counties, or are an immediate family member of anyone who qualifies for membership, then you can take advantage of all that we have to offer."

I am in Montco and we have American Heritage CU and they have an identical requirement. Basically, if you live here you can join. And I did.

ps

getting down to 0 this weekend

[anonymouse1]

It's a legal requirement. That's part of why credit unions are "allowed" to exist.