What are Credit Unions?
Credit unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other.
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 |
Controlled by paid boards |
| Operated by mostly volunteer 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.