State Charter Conversion - Rave Financial (2025)

What’s the difference between a federal and a state charter?Expand

A Federally chartered CU is one that is governed at the national level by The National Credit Union Association (NCUA for short). They make and administer the policies of operating a credit union. The NCUA is also the agency that insures our members’ deposits. This is the same concept as how the FDIC governs and insures banks.

With a State Charter, the credit union is governed by the state with assistance from the NCUA. State Chartered credit unions are still insured by the NCUA, but more of the decisions affecting the credit union are made by someone here in the great state of Texas. Additionally, the Credit Union Department of Texas provides resources and is an advocate for credit unions strictly here in the state. They want to see Texas-based credit unions grow and expand so we can reach more communities to help improve people’s financial health.

How is this better for members?Expand

Our passion is to serve and improve the financial health of individuals and businesses in the communities we serve. We want everyone to have the chance to be financially healthy. We believe in the spirit of “people helping people” and opening up our charter to State, it will open up the doors for us to reach more communities and more people.

Will my accounts still be insured?Expand

Yes, there will be no change to how your money is protected. Your deposits will still be federally insured based on current guidelines provided by the NCUA, up to $250,000.

Will there be changes to our member account numbers, account IDs, or the credit union’s routing number?Expand

We are not changing your account numbers, routing number, login usernames, or anything else tied to your account. Everything will remain the same.

Will the credit union’s website change?Expand

It will not. State Charter does not impact our website other than letting more people know they can be a part of this great financial institution.

Will this change the culture?Expand

No. We love our members and want what is best for them because they're like family. Our culture is what helped us get to this point and is integral to how we continue to grow and serve our communities.

What does this mean for the safety and soundness of the credit union?Expand

Our credit union has been safe and sound for the past 86 years, by converting our charter, it will continue to be. However, a state charter does allow us to work more closely with the State of Texas regulating body to find ways to improve and protect our members' best interests.

What is the geographic area you will be able to serve?Expand

Initially, we will continue to focus on our existing markets, however, we will plan to move further west to accommodate those in the greater Houston Metro and beyond.

How is the credit union going to be any different than a bank?Expand

We are still a non-profit, financial institution, whose customers (members) are the owners. We do not answer to stockholders, our volunteer board represents our members and everything we do is for the overall betterment of our members.

Do any volunteers, board members, or staff benefit monetarily from this change?Expand

No, this will not impact our volunteer’s status or the salary structure of our employees.

I live outside of Texas. Can I still remain a credit union member?Expand

Absolutely! The state charter will have no impact on how you do business with us other than our ability to continue to offer new ways for you to bank with us more conveniently.

Do members get a say in this change?Expand

Yes. Members will have an opportunity to vote on May 5th at 2 pm at our Calder Branch, or you can pick up a ballot at any of our other branches beginning April 1st, 2022, and mail your vote to our independent auditor. Ballots must be received by the auditor, by the May 5th, 2 pm meeting deadline to be accepted.

How do I vote?Expand

A ballot was included in your March statement that was mailed at the beginning of April; however, you can also pick up a ballot at any branch. All ballots must be mailed to our independent auditor at Wathen, DeShong & Juncker, LLP, 4140 Gladys Ave, Suite 101, Beaumont, Texas 77706. Ballots must be received prior to the vote on May 5th at 2 pm.

What if I lost my ballot?Expand

If you have lost or misplaced your ballot, you can visit any of our branches to pick up a new ballot.

Can I vote more than once?Expand

No, you may only vote once. Any additional ballots received will be destroyed and not count.

Do I have to vote?Expand

No, you do not have to vote, however, we encourage you to exercise your right as a member.

When will we know the results?Expand

That will depend on the auditor and the number of ballots they receive but we hope to share the results with our membership as soon as we can.

State Charter Conversion - Rave Financial (2025)

FAQs

Who owns Rave Financial? ›

We are still a non-profit, financial institution, whose customers (members) are the owners. We do not answer to stockholders, our volunteer board represents our members and everything we do is for the overall betterment of our members.

Is Rave Financial still a credit union? ›

The more we lift each other up, the further we all go. As Rave Financial, we will remain a credit union that is honored to serve its current members, and we look forward to welcoming more Texans who can benefit from what we offer.

What does state chartered credit union mean? ›

A state chartered credit union has a charter granted by a state. These credit unions follow state regulations. A federally charted credit union has a charter from the federal government granting it the ability to operate.

Why did Mobil credit union change their name? ›

The CU said the move is being made in response to misunderstandings around its field of membership. The credit union was founded in 1935 as Magnolia Employees Beaumont Texas FCU to serve the Magnolia Beaumont Refinery, before changing its name to Mobiloil Credit Union.

Who is the CEO of rave? ›

CEO. Todd Piett joined Rave in 2005 and today runs the global organization that has its technology deployed at thousands of colleges, universities, businesses and communities.

How big is Rave Financial assets? ›

Rave Financial is now a community charter and currently has more than 75,000 members and assets exceeding $1 Billion.

Does Rave Financial have Zelle? ›

Keeping your money and information safe is a top priority for Rave Financial. When you use Zelle® within our mobile app or online banking, your information is protected with the same technology we use to keep your bank account safe.

Who owns banks vs credit unions? ›

A bank is owned by shareholders. A credit union is owned…by its members! This means a bank must turn higher profits to satisfy the shareholder demand for income. They tend to have higher and more fees, and they also charge more interest on loans as a result.

Do credit unions run your credit? ›

A bank or credit union may make a soft inquiry on your credit when you open a new checking account to check for a history of fraud. These soft checks do not affect your credit score. However, in some cases, a bank may perform a hard credit check, which does affect your credit score.

Are state Chartered credit unions insured by NCUA? ›

All federal credit unions and the vast majority of state-chartered credit unions are covered by NCUSIF insurance protection. Credit unions that are insured by NCUSIF must prominently display the official NCUA insurance sign.

What is the difference between a federal bank charter and a state bank charter? ›

National banks are chartered and regulated under federal laws and are supervised by a central agency. State banks are chartered and regulated under state laws and are supervised by a state agency.

Are credit unions safer than banks during a recession? ›

Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money. Both credit unions and banks have deposit insurance and are generally safe places for your money.

What are the three largest credit unions? ›

Largest Credit Unions in the U.S.
Rank by Asset SizeCredit Union NameTotal Assets
1.Navy Federal Credit Union$168.4 billion
2.State Employees' Credit Union$50.68 billion
3.Pentagon Federal Credit Union$35.36 billion
4.Boeing Employees' Credit Union$29.17 billion
6 more rows
May 14, 2024

What is the oldest credit union? ›

1909. April 6, 1909 – St. Mary's Cooperative Credit Association, the first U.S. credit union, opens in Manchester, New Hampshire, with assistance from Alphonse Desjardins.

Are credit unions in the same trouble as banks? ›

No. Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union.

Who bought Rave? ›

Rave Mobile Safety was acquired by Motorola Solutions in 2022.

Who owns Rave TV? ›

Rave TV is a dynamic television channel featuring a diverse range of programming, owned by the renowned Agatha Amata, “Inside Out with Agatha,” holds the distinction of being one of the longest-running talk show on television in Nigeria.

Who owns Rave culture? ›

FOUNDED IN 2018 BY WILLEM VAN HANEGEM AND WARD VAN DER HARST OF W&W, RAVE CULTURE IS A BRAND THAT RESHAPES THE DANCE MUSIC EXPERIENCE FOR BOTH NEWCOMERS AND VETERANS ALIKE.

Who owns Rants and raves Moscow? ›

Neil Marzolf - Owner Rants & Raves Brewery LLC - RANTS & RAVES BREWERY LLC | LinkedIn.

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