The Credit Union Difference
A credit union is a not-for-profit financial institution owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they live, work, or go to church. These groups make up a credit union's field of membership. Credit unions exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. Like other financial institutions, credit unions are closely regulated. And they operate in a very prudent manner.
The National Credit Union Share Insurance Fund administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $250,000.
What makes a credit union different from a bank or savings & loan? Credit unions, like banks, accept deposits and make loans - but unlike banks, credit unions are in business to help people and communities. Members of credit unions pool their assets to provide loans and other financial services to each other. Net income of hte credit union is used to build Capital or is returned to the member in the form of dividends product and service development and other community services such as adult financial education resources.
Credit unions differ from banks in several ways:
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Credit Unions
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Other Financial Institutions
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Not-for-profit cooperatives
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Owned by outside stockholders
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Owned by members
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Owned by outside stockholders
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Operated by mostly volunteer boards
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Controlled by paid boards
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Regulatory Affairs
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