credit union

(redirected from Credit unions)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Credit union

A not-for-profit institution that is operated as a cooperative and offers financial services such as low-interest loans to its members.

Credit Union

A non-profit cooperative organization that offers many of the same services as a bank. Specifically, credit unions offer checking accounts, savings accounts, and some loans. Most of the time, credit unions were founded by and/or cater to a particular profession, church, or community. Many credit unions serve rural or poor areas. Because they are non-profits, they often offer better interest rates than retail banks; however, they usually have fewer services.

credit union

A nonprofit cooperative financial institution that provides credit to its members. Credit unions often pay slightly higher rates of interest on passbook-type savings accounts and charge lower rates on consumer loans.

Credit union.

Credit unions are financial cooperatives set up by employee and community associations, labor unions, church groups, and other organizations. They provide affordable financial services to members of the sponsoring organization.

In some cases, they're created in rural or economically disadvantaged areas, where commercial banks may be scarce or prohibitively expensive.

Because they are not-for-profit, credit unions tend to charge lower fees and interest rates on loans than commercial banks while paying higher interest rates on savings and investment accounts.

The services offered at large credit unions can be as comprehensive as those at large banks. At smaller credit unions, however, services and hours may be more limited, and a few deposits may not be insured.

Assets in most credit unions are insured by the National Credit Union Share Insurance Fund on the same terms that deposits in national and state banks are insured by the Federal Deposit Insurance Corporation (FDIC).

credit union

A nonprofit organization in which qualified persons may make deposits and obtain loans. Formerly, membership was strictly defined so as to limit it to persons in a particular industry or trade organization, but those rules are now largely obsolete. Bankers believe that credit unions enjoy an unfair advantage in the marketplace by virtue of paying no income taxes as a result of their nonprofit status.The lack of any income tax expenses allows the credit unions to offer somewhat higher rates on deposits and somewhat lower rates on loans.

References in periodicals archive ?
Before garnering mainstream popularity, credit unions had a reputation of serving underprivileged communities.
The majority of those credit unions already have independent audits done by a licensed public accountant or a CPA, he added.
It helps credit unions streamline both front and back office processes and creates a centralized view of members, employees and business partners.
The change in charter could also mean less regulation for Premier since ``state laws governing credit unions tend to be more liberal than federal law,'' she said.
Fiserv now provides core processing services to more than one-third of all credit unions with $1 billion or more in assets.
Unlike banks, credit unions do not pay federal incomes taxes and many don't pay state income taxes.
Federally regulated credit unions are required to maintain written policies and procedures, all subject to audit, which outline their response to a security breach or database compromise.
The banking industry, which claimed that credit unions enjoy an unfair competitive advantage because of their tax-exempt status, said it was just trying to level the playing field and that credit unions have overstepped their bounds.
This is a great product for credit unions to thank their loyal members while providing prospects with yet another incentive to join.
But Ron McDaniel, president of PMFCU, the largest Ventura County-based financial institution with $130 million in assets and 32,000 members, said bankers just want to run credit unions out of business.
Recently signed customers include Dade County Federal Credit Union, Del Norte Credit Union, Mission Federal Credit Union, Mobiloil Federal Credit Union, Neighborhood Credit Union, Ventura County Credit Union, Veridian Credit Union, NASA Federal Credit Union, Credit Union ONE, SEFCU, Silver Oak Leasing, Inc.

Full browser ?