What Is a Credit Union

What is a Credit Union?

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.

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