Credit Union

Credit unions are financial cooperatives that are member-owned.

They are controlled and operated by members usually with a vision of serving the community.

This theoretically means that it would be easier to obtain credit from them than from a traditional lender.

But that does not mean that they give away free money.

They offer most of the products and services that banks offer. Albeit with different terminology.

For example:

  • Savings accounts are called share accounts
  • Current checking accounts are called share draft accounts
  • Certificates of deposits are called share term certificates
  • etc

And at times, the rates they charge can be fiercely competitive against banks.

Because of their not-for-profit status, which can be sketchy in definition, they can enjoy tax benefits from the IRS.

While credit unions serve individual consumers, corporate credit unions serve… credit unions.

Make of that what you will.