What Is A Credit Union?
Unlike other financial institutions, a credit union is owned by its members. Credit union members share a common bond, such as employment or a place of residence. They combine their savings to create a pool of funds from which any member can borrow. After the credit union’s operating expenses are covered, the interest earned on loans and investments is returned to members in the form of higher savings rates, lower loan rates, and additional low cost products and services.
Credit unions also differ from banks in that they are democratically controlled. Members meet once a year to elect a volunteer board of directors from the membership. Every member in good standing has the right to vote for this board.