A credit union is a member-owned, not-for-profit cooperative. Credit unions offer the same financial products and services that banks provide, but the business model is different. A bank must generate profits for investors or stockholders. A credit union generates income from products and services in order to pay for operating the credit union and providing services to members. This cooperative structure is why credit unions typically charge lower rates on loans, pay higher dividends on deposit accounts, and provide more free and low-cost services than banks. Most credit unions, including Community Credit Union, have a Board of Directors comprised of unpaid volunteer members.
How do credit unions differ from banks? Print
Modified on: Wed, Nov 6, 2019 at 4:15 AM
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