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What is a Credit Union?
Credit unions are not-for-profit financial co-operatives. The first credit union was established in Western Europe, and the main purpose of a credit union is to give members, who are also owners, a place to save and borrow money.
People form credit unions around a common bond, like employment, to help each other out. The money members have in their credit union accounts is lent to other members who pay interest on those loans. The credit union then takes the funds generated by that interest to pay the operating expenses of the credit union.
After paying operating expenses, any leftover money is returned to members in the form of dividends and other financial services. Best of all, because credit unions are not-for-profit, they're able to pay high dividends on savings and charge low interest rates on loans.
