Credit unions are cooperatives that offer financial services to members who typically share a common bond, such as living in the same geographic area or belonging to the same organization. Credit unions are not-for-profit organizations that reinvest their earnings to benefit their members.
Credit unions generally offer lower interest rates on loans and higher interest rates on savings for their members. Unlike most commercial banks, credit unions are owned by their members, and the members elect a board of directors to oversee the credit union’s activities. Credit unions have an obligation to their members to keep costs low and to serve members’ best interests.
What Services Do Credit Unions Offer?
The services available vary from credit union to credit union, but they may include savings and checking accounts and short-term and long-term loans. Credit unions also often offer certificates of deposits, home equity lines of credit, mortgages, and car loans. Many offer additional services such as online banking, debit cards, and mobile banking.
Who Can Join a Credit Union?
Credit unions generally have eligibility requirements, so you’ll need to research individual credit unions to determine if you’re eligible. Common eligibility requirements include residency in a particular geographic area, working or living in the same area, being affiliated with a particular church or organization, or being related to or employed by a credit union member or sponsor.
Credit unions are an important part of the financial services industry, offering competitive rates and personalized attention to their members. If you’re looking for financial services with a community-oriented approach, a credit union might be the right choice for you.