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A credit union is a type of financial cooperative that provides traditional banking services. Credit unions, ranging in size from small, volunteer-only, to large enterprises with thousands of members across the country, can be created by large corporations, organizations and other organizations for their employees and members. For example, Federal…
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A credit union is a type of financial cooperative that provides traditional banking services. Credit unions, ranging in size from small, volunteer-only, to large enterprises with thousands of members across the country, can be created by large corporations, organizations and other organizations for their employees and members.
For example, Federal Credit Union is created and owned by its members and managed by them. Thus, it is a non-profit enterprise that enjoys the status of tax exempt.
The ability to operate with a narrow margin allows credit unions to pay higher interest rates on deposits, as well as charge lower fees for other services such as current accounts and ATM withdrawals. In short, a credit union can save its members money on loans, accounts, and savings products.
