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Credit unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other.
Credit unions differ from other banks in several ways:
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Credit Unions
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Other Financial Institutions
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Not-for-profit cooperatives
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Owned by outside stockholders
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Owned by members
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Owned by outside stockholders
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Operated by volunteer boards
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Controlled by paid boards
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These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower loan rates, higher savings rates and fewer service fees.
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