A credit union is a member-owned and controlled, financial cooperative that is entirely operated by and for its members. When an individual deposits money into a credit union, he/she becomes a member of the credit union and has partial ownership of that credit union. A credit union consists of individuals with a common affiliation, such as government employees, labor union members or residents of a particular community. Even a large organization or company can form a credit union for its employees, customers and partners. Most often a credit union will offer a full range of financial products and services including savings and lending. A credit union is closely regulated by the National Credit Union Administration and must operate in a very prudent manner like other financial institutions. Quite often, a credit union will be more competitive than a traditional bank or savings and loan institution because its non-profit status lowers its operating costs. |
