Credit Union FAQs

Credit unions are full-service financial institutions that can help you realize all your financial goals. Members have access to the same products, services, and benefits that are offered by other financial institutions. Where credit unions differ is that they are not-for-profit financial cooperatives owned by and operated for the benefit of the members they serve.  Credit unions serve their members, not Wall Street investors.

Credit unions are cooperatives, or an organized group of people with some common bond. Examples of a common bond may be your employer, the community in which you live, a faith-based organization, school, or military, just to name a few. Credit unions generally operate under government charter and supervision and members elect a board of directors to manage the credit union to ensure that their best interests are represented.

Learn more about how credit unions were started here.

Banks and credit unions are similar in many ways. Both accept deposits, offer loans and other financial services, and are secure places to keep funds. But there are significant differences between the two.  We break it down for you, here.

Credit unions are here for you – today and for your future. Individual accounts are insured up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. Credit unions have the latest security to keep your funds safe and available.

Yes. You can access your money wherever you are, through mobile banking and ATM networks worldwide. Credit unions have what you need so you can get cash, pay your bills, and transfer funds quickly and conveniently.

Credit unions’ People Helping People philosophy puts members first. They don’t answer to outside shareholders and instead give earnings back to their members through benefits like higher returns on savings, lower loan rates, added services, and fewer fees. Credit Unions provide $13.3 billion in total financial benefits directly back to consumers across the country.


The National Credit Union Administration publishes the most recent interest rates. Keep in mind that rates near you will vary by institution, and they fluctuate often.


Credit unions also support their local communities through work such as offering financial education, serving underserved populations, volunteering, and contributing to community initiatives.

Yes. There is a credit union for everyone. You can qualify to join a credit union based on things such as where you live, work, worship, or go to school, and membership in a club or association. Each credit union has its own “field of membership” (a specifically defined group of people they serve). You just need to find one for you.

Learn more about field of membership and how you can become a member here.

Not-for-Profit

Credit unions return earnings to members in the form of higher interest rates on savings products, lower interest rates on loans and credit cards, and added services. Some credit unions even distribute dividends to members.

Member-Owned and Operated

A credit union’s board of directors is elected by the members, and each member has an equal vote.

Better Service

Members are the owners, so credit unions place a heavy emphasis on excellent customer service, financial education, and community involvement. See what Consumer Reports has to say about credit union customer service.

Accessible

Credit unions offer mobile banking and large, robust ATM and branch networks that make it easy for members to access their money anytime, anywhere.

Credit unions are member-owned and not-for-profit. While they do not pay federal income taxes because of their organizational structure, they do pay many local, state, and federal taxes.


In addition to this, several independent researchers have found that credit unions have a moderating influence on bank pricing raising bank deposit interest rates and lowering bank loan rates. Based on this research, the Credit Union National Association (CUNA) estimates that bank customers saved $5.2 billion in 2020 from more favorable bank pricing arising from the presence of credit unions in their local markets. Since 2007, those non-member financial benefits have totaled approximately $39.4 billion.


Collectively, credit unions pay more than $20 billion in taxes annually.

Credit unions are required by law to have a "field of membership." This field of membership is a specific group of people the credit union serves. Examples of field of membership include:

• Geographic Area
• Employer
• Church
• School
• Community
• Employee group
• Military and government agencies
• Club or Association
  

This requirement creates what is known as a common bond among members.  Learn more about field of membership and how you can become a member here.

Credit unions offer superior customer service, better rates and lower fees.  Credit unions can do this because they are not-for-profit financial institutions where the members are their shareholders.  All profits are distributed to members through better interests rates and lower fees.  Credit unions are people first organizations that focus on the community they serve.  For more details on why you should choose a credit union, click here.

Credit unions are comprised of people helping people – they have an interest in supporting and advancing their communities. They work hard to improve members’ savings; help them invest in their homes, businesses, and education; and secure a stronger financial future.

Check out the impact credit unions make in your state here.

 

Credit unions collaborate and work together for the greater good of their communities and the credit union movement.  Because of this, credit unions offer shared branching for their members.  Shared branching is a national network of credit unions from across the country that share their facilities to give all of their members thousands of convenient locations to perform financial transcations.  There are more than 5,600 shared branches across 50 states and you'll have access to over 30,000 Surcharge-Free ATMs across the U.S