What is a credit union?
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. At a credit union, though, you’re not just a customer but a “member”. Credit unions are owned and controlled by the members who use their services.
Initially, many credit unions in the U.S. were formed around a common bond such as occupation, association or a well-defined neighborhood, community or rural district. The cooperative structure of credit unions creates a mutual relationship between the credit union and members with the common goal of promoting the financial well-being of the members. Profits are returned back to the members in the form of enhanced products and services, lower loan rates, reduced fees and higher savings rates. One member’s deposits become another member’s loans.