New York City Government Employees get benefitted from a lot of schemes offered to them by the City. One of those many favorable schemes is associated with the Municipal Credit Union. There are several ways how a New York City Employee may get benefitted from Municipal Credit Union. You have a look at all these important points to know more about Municipal Credit Union, what kind of services the Municipal Credit Union provides, the difference between a bank, and its operation process.
- What is the Municipal Credit Union?
In short, Municipal Credit Union is also a financial institution just like a bank, yet however, it is different from a bank. The non-profit based organization called Municipal Credit Union offers City employees several facilities starting from opening accounts to lending loans.
- Offers Provided by Municipal Credit Union:
There are several benefits that a New York City Employee can avail from being associated with the Municipal Credit Union. Some such offers are-
- Checking and savings account means a New York City Employee may easily open a checking or savings account at the Municipal Credit Union.
- Visa cards- Municipal Credit Union offers its members the facility of visa cards.
- Mortgages- a New York City Employee may keep a mortgage in Municipal Credit Union for financial reasons.
- Loans- the Municipal Credit Union gives loans to the City Employees as well.
- ATM access- New York City employees can benefit from the ATM service facilities from the Municipal Credit Union.
- Money marketing accounts- one may open a Money Marketing Account with the Municipal Credit Union as well.
- Individual retirement accounts: the Municipal Credit Union offers the City employees open individual retirement accounts.
- What is the difference between the Municipal Credit Union and a bank?
Clearly, after reading about the Municipal Credit Union’s facilities available to the New York City employees, one may think that the Municipal Credit Union is yet another bank. However, that is not true. Even though the Municipal Credit Union operations are somewhat similar to a bank, there are many differences between these two financial bodies. Let’s have a look at the difference between a bank and a Municipal Credit Union to gain a better understanding of the matter-
- The banks, by nature, are financial bodies that operate to make a profit. So, the main motif of a bank is to make a profit. On the other hand, the Municipal Credit Union is a non-profit financial organization.
- Banks usually provide their services to the general public. So, the area of operation is pretty big here. On the other hand, the Municipal Credit Union is a member-owned financial body. Not all the people could get facilities by MCU.
- The relation between a bank and its members is strictly profit-based. That means the bank won’t share any profit with the account holders. On the other hand, MCU operates to cover the expenses. After the expenses get covered, MCU passes the additional profit to the members. It makes the cost of products lesser and offers better rates to the members.
- The process of operation of MCU:
After joining MCU, a City employee may deposit their entire salary directly to the MCU account via an electronic medium, or they may make initiation of part payments as well. In this process, a partial amount of the salary will get transferred to the MCU account. The process of paying back loans is similar, as well.
- The reason why unexplained debit occurs on the account after the payroll deduction process with Municipal Credit Union:
In the case of payroll deductions, an employee may notice an unexplained debt on the statement on an occasional basis. There can be several reasons for that-
- If the agency makes a refund of the pay.
- If an employee takes a leave of absence
- If the employee gets transferred to another agency.
- If someone gets terminated
- In case payment gets reissued for an incorrect payment
So, even if an employee does not make a payment, payroll deductions may get credited to the MCU account. These payments get back to the OPA after payday. In such a situation, the credit amounts related to the pay and deductions get reversed, making the payment non-existing in the first place.
- Points to be noted:
There are certain things an employee should know about these unexplained debits-
- The employee must contact the MCU customer service representative immediately.
- If the City did the debit, it might have happened because of the agency’s refund request.
- In that case, the employee should get in touch with the agency Payroll Office and not the OPA.
So, these are some of the vital things one should know about the Municipal Credit Union.