What's a Credit Union?

The Credit Union Difference

We call it the “credit union difference,” but what makes a credit union different from a bank or savings & loan? Like credit unions, these financial institutions accept deposits and make loans--but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments. Credit Unions are not-for-profit cooperatives owned by the members.

Credit Unions' Financial Health

Like other financial institutions, credit unions are closely regulated and required to operate in a prudent manner. The strength of America’s credit union system is reflected in our national insurance fund, which is administered by the National Credit Union Administration (NCUA), an agency of the federal government. The National Credit Union Share Insurance Fund (NCUSIF) insures deposits of credit union members at more than 11,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $250,000, with higher coverage amounts available on retirement accounts or depending on whether more than one person owns the fund in an account. Credit unions have never required a single taxpayer dollar to remain viable, unlike other financial services industries. In fact, credit unions have been lauded for providing practical solutions for America's personal finance woes.

Credit Union Governance

Credit unions are egalitarian. Every member has one vote, regardless of how much money or how many services they use. Unlike other financial institutions, credit unions are operated by a volunteer board of directors elected from the membership. If you’re interested in getting involved in your credit union’s governance, contact your credit union. Credit unions are often looking for interested volunteers to serve on various committees as well as the credit union’s board of directors.