Credit unions are financial institutions which are owned privately by their members (unlike most banks that are owned by shareholders). Credit unions typically have higher interest rates on savings accounts and lower rates on loans than regular banks.
Membership
Not everyone can join any credit union they please. The federal government restricts members to defined segments of the population, such as:
- Location (live, work, worship, or attend school in a well-defined geographic area)
- Job (employer or occupational group like teachers, doctors, etc.)
- Members of specific non-profit groups
What is the difference between a bank and a credit union?(1 Answer)
A:
Credit unions are not-for-profit financial cooperatives that conduct business for the mutual benefit and general welfare of their member-owners. Banks are for-profit financial corporations who conduct business to ...
Best credit unions in Philadelphia, Pennsylvania?(0 Answers)
A:
No answers yet.
Which banks are best for financing a car? (1 Answer)
A:
Credit unions are excellent places to get a car loan, provided you have a good credit score and stable employment. Credit unions typically charge less in interest rates ...
References
Fast Facts
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Unions serving 172 million retail members controlling $1.1 trillion in assets
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Credit unions date back to 1852
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Some are non-profit organizations
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Others are for-profit, with profits paid out via dividends to the owners
