What is a Credit Union?

A credit union is a not-for-profit financial cooperative owned and operated by its members to promote thrift or savings. Unlike other financial institutions credit unions are not open to the general public. Credit union membership is open to people who share a common bond through employment, an association, or a geographic community. Many credit unions also allow immediate family members of eligible individuals to join.

The philosophy of the credit union movement is "not for profit, not for charity, but for service." This philosophy dictates the organizational structure of a credit union and how it differs from that of other financial institutions. A credit union belongs to its members. When you open your account, you become an owner of your credit union.

The Board of Directors, which is responsible for setting the policies of the credit union, is elected from the membership. As a member of a credit union you can nominate someone for the board or run for office yourself. You may also choose to volunteer to serve on various credit union committees such as the Credit Committee, Finance Committee, or Supervisory Committee. In selecting the directors each member receives one vote, regardless of the amount of money the member has with the credit union.

Credit unions exist to help their member-owners and not to enrich shareholders, thus, credit unions return their profits to the members in the form of higher dividends on share accounts, lower loan rates, and discounted fees for financial services.