What's a Credit Union?

A credit union is an organization that offers a group of people a place to save their money, borrow money and take care of their finances. These people usually have something in common, like where they work or live. This is called a “common bond.”

Although a credit union is kinda like a bank, there is one big difference: banks are in business to make money for their shareholders, while credit unions are not-for-profit and are owned by its members. Why is this a big deal? When you open an account with the Credit Union, you become a part-owner. That’s right–you own a small part of the Credit Union.

Membership makes a difference
When you become a Credit Union member/owner, you can expect to receive things like higher interest rates on savings, which means your money grows faster.

Members also get lower interest rates on loans. Does this sound too good to be true? Credit unions have been this way since they were first developed in America in 1909. It worked then, and it still works today!



Back To Money Lab Training Center