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City of Boston
Credit Union
Celebrates 95 Years

Kathy Kurtz Ferrari
Staff Writer
10/21/10
Celebrating its 95th year in business, City of Boston Credit Union has seen many changes over its history.

At one time known unofficially as the policeman’s credit union, the institution is one of the area’s oldest credit unions. Up until just a few years ago, membership was limited to those who worked for the city of Boston.

But over the past decade, credit unions have begun opening memberships to others. City of Boston Credit Union now offers membership to anyone living or working in Norfolk County or Suffolk County, and the credit union is hoping to entice Milton residents with its competitive rates.

According to Karla McCarron, marketing director for the credit union, the change has greatly benefited the membership.

“For us, we felt like we offer such good services and benefits to our members. We wanted to try and reach out broader than just people who work for the city,” said McCarron. “It’s good.”

What is unique about dealing with a credit union is that by opening up a primary share account – a simple savings account – you establish a special relationship.

“We don’t call them customers. We call them members because they each have a share,” said McCarron. “We ask them to maintain a $25 balance in a primary share account. And if they choose to leave us, they get that back. …So that way, every member is equal, no matter what their balance is. And we have annual elections for our board of directors. And the members vote for them.”

It’s a unique way of banking, and members feel they have a real say in what happens with their money, with a sense of ownership, according to McCarron.

“The big difference between us and a bank is that a bank is trying to make money for stockholders, where we try to make money so we can turn it back around and have better rates for the membership,” McCarron said.

Being one of the bigger credit unions, with more than 19,000 members, City of Boston Credit Union can offer some attractive rates. Currently it is offering a 5.99 percent personal loan rate, and an auto loan rate as low as 3.49 percent.

And it offers a new tuition loan, which is available to help families pay for school from elementary to graduate school. The loan has a maximum of $25,000, and has been popular with many members who have chosen to send their children to parochial schools.

A checking account at City of Boston Credit Union has no fees, with no minimum balance required. Online banking is also available.

The institution doesn’t sell its loans, with all loans staying right at the credit union, something most banks don’t do.

“We offer full-blown financial services. The only thing we don’t offer is credit card services,” said McCarron, adding that the credit union does offer debit cards. “We actually don’t believe in credit cards, because our personal loan rates are so good, so if somebody needs funds, it’s probably a better way for them to go.”

Another perk to banking at City of Boston Credit Union, said McCarron, is that it tries to work with those seeking loans.

“Every Monday, the credit committee meets, which is made up of a group of actual board members who are volunteer elected,” McCarron said. Any member of the credit union can serve on the board of directors.

“They review questionable loans. It gives people the opportunity to explain their story. …I think it’s a step that a lot of other institutions might not make,” she added.

Stopping to chat in the Dorchester branch, located at 1010 Morrissey Blvd., on a recent afternoon was board member Gene McCarthy, of Boston, who joined as a member in 1970. He has served on the board of directors since the mid-1980s. What attracted him to the credit union was that the good rates helped him pay tuition for his children when they were younger.

“It gives me a feeling of being a part of it,” McCarthy said of his longevity on the board.

City of Boston Credit Union has three branch offices. In addition to the Dorchester location, there are offices at City Hall in downtown Boston, and at 77 Spring St. in West Roxbury. The credit union has 10 ATMs located around the Boston area.

Visit www.cityofbostoncu.com for more information.