Frequently Asked Questions
A credit union is a cooperative, non-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a Board of Directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policies, sets dividend and loan rates, and directs certain operations. The result is that members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not make a profit.
Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investments. A credit union doesn’t operate in that manner. Rather, each credit union member owns one “share” of the organization. The user of credit union services is also an owners, and is even entitle to vote on important issues, such as the election of member representatives to serve on the board of directors.