What is a “Credit Union”?
A credit union is a group of people who have joined together for the purpose of saving their money in a common fund from which loans are made to the credit union members…..’People Helping People.’
Credit Unions are significantly different from other financial institutions in that members are also owners. Each member / owner establishes their ‘share’ within the credit union when they open their savings (share) account. Members / owners of the credit union participate in the credit union’s direction by electing the board of directors.
What happens to the earnings of a Credit Union?
Credit Unions are different in that earnings are distributed back to the members in terms of:
- Dividends to Members
- Lower Loan Rates
- Increased Services to Members