A credit union is a financial cooperative that is owned and controlled by its members. Credit unions offer a variety of financial products and services, such as checking and savings accounts, loans, and credit cards, to their members. Credit unions are typically organized around a common bond, such as membership in a particular organization, employment at a specific company, or living in a particular community.
Credit unions are typically not-for-profit organizations, which means they do not aim to generate profits for shareholders. Instead, credit unions return profits to their members in the form of lower fees, higher interest rates on deposits, and lower interest rates on loans. Credit unions are regulated by state and federal agencies and are insured by the National Credit Union Administration (NCUA).
Credit unions may offer a number of advantages over traditional banks, such as lower fees, higher interest rates on deposits, and lower interest rates on loans. Credit unions may also have a more personalized approach to banking, as they are often smaller and more focused on serving their members. If you are interested in joining a credit union, you can search for one that serves your community or meets your specific eligibility requirements.