What is a Credit Union?
How is a credit union different than a bank? Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services. But as member-owned and cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates.
YOU ARE MORE THAN A MEMBER,
YOU ARE PART OWNER.
Credit unions are owned and controlled by the people, or members, who use their services.
Your vote counts. A volunteer board of directors is elected by members to manage a credit union.
Credit unions operate to promote the well-being of their members.
Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates and lower loan rates.
Members of a credit union share a common bond, also known as the credit union’s “field of membership.”
You may be able to join based on your:
Many credit unions serve anyone that lives, works, worships or attends school in a particular geographic area.
Members often have shared interests and appreciate participating in an institution designed to help other members.
Credit unions may provide:
- financial education and outreach to consumers;
- in-school credit union branches; and
- small business needs.
The cooperative structure of credit unions creates a cycle of mutual assistance towards the common goal of the financial well-being of members.
One member’s savings becomes another member’s loan.