What Is a Credit Union?
Credit unions are financial institutions formed by an organized group of people with a common bond. (Think TEACHERS, TRADESMEN) Members of credit unions pool their assets to provide loans and other financial services to each other. This is much safer than banks – take your money out of your no-interest bearing accounts and put it into a Credit Union.
Credit unions differ from other banks in several ways:
| Credit Unions | Other Financial Institutions |
| Not-for-profit cooperatives | Owned by outside stockholders |
| Owned by members | Owned by outside stockholders |
| Operated by mostly volunteer boards | Controlled by paid boards |
These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees.
The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions. They also insure savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.
This section of the CUNA website includes additional information about the history of credit unions, where to locate credit unions near you, and how you might be eligible to join.
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