What is a Credit Union?
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 were first started in the United States after the great depression to help americans get back on their feet with the philosophy of people helping people, and still use this same philosophy today. Credit Unions are member-owned and live by the credit union motto of "not for profit, not for charity, but for service."
Credit unions differ from other banks in several ways:
- Not-for-profit cooperatives
- Owned by members
- Operated by mostly volunteer boards
- Return profits to members in the form of lower loan rates, higher savings rates, lower fees, and new products and services
OTHER FINANCIAL INSTITUTIONS
- Owned by outside stockholders
- Controlled by paid boards
- Return profits to stockholders
Learn more by visiting the Credit Union National Association's website, www.asmarterchoice.org.
NCUA INSURED FUNDS
The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions. They also insure savings in federal and most state-chartered credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the full faith and credit of the United States government.
Use the Share Insurance Estimator to find out how the share insurance rules apply to your account(s) at Eagle.Go to main navigation