Southwest Financial Federal Credit Union was formed in November 1962 as Kro-Dal (Kroger Dallas) Employees Federal Credit Union. We opened for business in the early months of 1963 and operated out of a small Kroger office. Only Kroger employees and their families could join the credit union at that time. During the first few months of operation, SWFFCU had 200 members, 11 loans, $3,000 in assets, only savings and loan products, and a net income of $50 per month.

Times have changed! Today SWFFCU has over $50 million in assets, over 10,000 members, two full-service locations based out of The Woodlands and Dallas, thousands of shared service centers across the U.S., dozens of products and services, 24-hour conveniences, and over 20 full-time employees. In addition, SWFFCU offers the credit union benefit to dozens of employers, employees and their families.

What is a federal credit union?

A federal credit union is a cooperative, not-for-profit financial institution organized to promote savings and provide credit to its members, who are also customers. All federal credit union members are provided with a safe, convenient place to save and borrow their money at competitive rates.

The key differences between a bank and a credit union is that the banks are owned by shareholders and are for-profit, which leads to higher fees and rates on loans, since excess profits are returned to shareholders. Compare this with a credit union, which returns any excess profits to members in the form of dividends. Another added bonus is that credit unions provide innovative products, lower loan rates, higher savings rates and lower service fees.

A federal credit union is member-owned and controlled through the election of a board of directors drawn from the membership. Board members serve on a volunteer basis.

Membership in a federal credit union is not open to the general public. Instead, it is limited to persons sharing within a Select Employer Group (SEG).