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| These people are
members. Credit unions serve groups that share something in common,
such as where they work, live, or go to church. Credit unions exist to
provide a safe, convenient place for members to save money and to get
loans at reasonable rates. |
Credit unions offer the same products and services as banks. The only
difference between a bank and a credit union is that a bank is a publicly
held company where share holders can invest in the bank and expect to get
a return on their investment. A credit union’s shareholders are its
members. The benefits credit union shareholders enjoy are low interest
rate loans, high interest rates offered on deposits and investments and
fewer or no fees.
Credit unions, like other financial institutions, are closely regulated.
The National Credit Union Administration (NCUA) is the federal agency that
regulates credit unions. The NCUA insures deposits of credit union members
at more than 9,000 federal and state-chartered credit unions nationwide.
Deposits are insured up to $100,000. |
