Often people wonder what is a credit union, and how are they different from a bank? Here we have put together a quick list of what credit unions are all about, to help you understand the credit union difference.
- Serving the members. A Credit Union is a member owned and controlled, not-for-profit financial institution. A member is an owner of the credit union they belong to, unlike banks, who have a select number of share holders who are calling the shots. Once you open an account at a credit union, you are a member!
- Paying members the highest possible rate on their deposits. Because a credit union is a not-for-profit financial cooperative, they do not have to provide a return to a select group of share holders, which means they can give their earnings back to the membership with higher deposit rates, lower fees, and lower loan rates.
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