What is the difference between credit unions and other financial institutions?
A. Credit unions are local, not-for-profit financial cooperatives that are owned by their members. Credit unions are governed by a volunteer Board of Directors. All members have a voice in how the credit union operates. Other financial institutions tend to merge, change names, or even go out of business. They are profit-based and stockholder owned. They tend to charge higher loan rates and are more likely to charge fees and require high minimum balances. They are often owned and operated by out-of-state or foreign investors.
