What Is a Credit Union?
A credit union is a not-for-profit cooperative financial institution, owned and controlled by its members. Credit unions typically serve groups of people who have something in common—where they work or live, for example. Credit unions serve more than 120 million members around the United States.
The National Credit Union Administration (NCUA) is an agency of the federal government that insures deposits of credit union members. Deposits are insured up to $250,000.
What Makes a Credit Union Different?
Credit unions accept deposits, make loans, and provide the same services as other financial institutions. However, credit unions exist to serve their member-owners, and benefits are returned in lower fees and competitive loan and deposit rates.
Credit unions are the only democratically controlled financial institutions in the U.S. who exist only to serve their members. Members elect a volunteer board of qualified individuals to oversee the credit union and the managing president reports to this board.