What is a credit union?
A credit union is a cooperative financial institution that is owned and controlled by the people who use its services. These people are members. Credit Unions serve people who share something in common, such as where they work, live or go to church. Credit unions are not-for-profit and exist to provide a safe, convenient place for members to save money and to 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, administered by the National Credit Union Administration, an agency of the U.S. Federal government, insures deposits of Credit Union members at Federal and state-chartered Credit Unions nationwide. Member deposits are insured up to $250,000.
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.
A credit union is a financial cooperative. It is a not-for-profit organization that is owned by its members. All members of a credit union have equal voting rights, regardless of their deposit balance. Credit unions focus on their members and return profits to the members in the form of higher savings rates, lower loan rates, and better services.
A credit union is a cooperative, not-for-profit financial institution, owned by its members and organized to promote thrift and provide credit to members. It is managed by a volunteer board of directors, elected by the membership. The board hires a management team to operate the credit union. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution that exists to benefit them.
