Credit Union

A credit union refers to a not-for-profit cooperative financial institution which is owned and controlled by its members. An election of a volunteer board of directors is conducted from the membership itself. The member of a credit union can only deposit money with the credit union. They are only eligible for borrowing money from it. Many people confuse a credit union with traditional financial institution such as banks, savings and loan etc. As for as credit union is concerned, the members of it are reckoned as the owners of the credit union.

It is a co-operative institution with many policies governing interest rates and other matters that work for the benefits of its members as a whole. Credit unions are well known for providing helping hand to members at the time of crisis and improve their financial position. Many credit unions offer higher interest rates on shares. They also charge only lower interest rates for loans when compared to banks.

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