What is a credit union?

A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit. ... more

A. A credit union is a not-for-profit organization that is owned by its members. The prime function of the credit union is to serve its members. Credit unions focus on the needs of all their members, instead of a limited number of shareholders. All members of the credit union have equal voting rights, regardless of the amount on deposit. ... more

A1: A federal credit union is a nonprofit, cooperative financial institution owned and run by its members. Organized to serve, democratically controlled credit unions provide their members with a safe place to save and borrow at reasonable rates. Members pool their funds to make loans to one another. The volunteer board that runs each credit union is elected by the members. Not for profit, not for charity, but for service is a credit union motto. ... more

A credit union is a member-owned cooperative financial institution that is not-for-profit. Since credit unions exist solely to serve their member-owners, they are able to offer competitive rates on your saving investments and loans. Each year members have the ability to select candidates for the Board of Directors among their peers, to represent them in setting the credit union's policies. ... more

• A. A credit union is a nonprofit cooperative financial institution organized and operated for the mutual benefit of its members. The members are the owners of the institution. The membership of a credit union is limited to groups having a common bond of occupation or association or to groups within a well-defined neighborhood, community, or rural district. A person cannot become a member of a credit union unless he or shee belongs to a group that is within a credit union's field of membership. The field of membership is specified in a credit union's charter or articles of incorporation. Because credit unions are nonprofit cooperatives, they are exempt from from payment of federal and state income taxes. ... more

Credit unions are not-for-profit financial co-operatives. The first credit union was established in Western Europe, and the main purpose of a credit union is to give members, who are also owners, a place to save and borrow money. People form credit unions around a common bond, like employment, to help each other out. The money members have in their credit union accounts is lent to other members who pay interest on those loans. The credit union then takes the funds generated by that interest to pay the operating expenses of the credit union. After paying operating expenses, any leftover money is returned to members in the form of dividends and other financial services. Best of all, because credit unions are not-for-profit, they’re able to pay high dividends on savings and charge low interest rates on loans. ... more

• Background Credit Unions were created in 1933 as an alternative financial option to traditional banks. Developed on the principle of "people helping people", credit unions offer all of the same products and services as traditional banks while never compromising their dedication to customer service and cultivating member loyalty. • Why Choose a CU A bank's leadership is comprised of their largest shareholders. Credit unions are owned by their customers/members. Credit unions exist solely to serve their customers/members who are part owners in the credit union and benefits are usually returned to them in the form of lower loan rates and higher deposit rates. Many credit unions in the San Diego area are full-service financial institutions providing one-stop services to meet all of the members financial needs. • Leadership Another difference between credit unions and banks is volunteers. The boards of directors of credit unions are volunteers, as are the supervisory committee members tha ... more

A credit union is a cooperative, not-for-profit financial institution organized to promote savings and provide loans to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policies, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit. ... more

A credit union is a cooperative 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 work, live or worship. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and get loans at reasonable rates. Credit unions, like other financial institutions, are closely regulated. And they operate in a very prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), 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 $100,000, the same as a bank. ... more

A Credit Union is a member owned non-profit financial cooperative. The first credit union was formed in 1850 in Germany. In this first Credit Union members deposited their savings with the credit society to provide working capital with dividends paid on these “share” accounts. Loans were extended for “productive purposes” based on the character of the borrower. The concept of Credit unions quickly spread throughout Europe, then to North America in 1900. ... more