What's a Credit Union?

A Credit union is a not-for-profit co-operative financial institution that is owned and controlled by its members, through the election of a volunteer board of directors elected from the membership itself. A credit union differs from a traditional financial institution in that the members who have accounts in the credit union are the credit union's owners. Credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health. Credit unions typically pay higher dividends (interest) rates on shares (deposits) and charge lower interest rates on loans than banks.