Credit unions are not-for-profit financial co-operatives. The main purpose of a credit union is to give members, who are also owners, better value in executing their financial activities. People form credit unions around a common bond, like community or employer. As a not-for-profit financial co-operative, Credit Unions earn net income to maintain a sufficient net worth for safety and soundness – not to pay dividends to a select group of shareholders. As such, Credit unions typically pay higher dividends on savings, lower interest rates on loans and lower fees for services.
Our free Switch Kit eBook makes switching to Stanford Federal Credit Union easy!