credit union

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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 ?
Replacement Parts Employees Federal Credit Union of Little Rock has been merged into Arkansas Employees Federal Credit Union, also of Little Rock; and
It is regrettable that many credit union leaders, the trade associations and the NCUA are silent on the blight of payday lending in the federal credit union industry.
The high court handed down its interpretation of ``common bond'' as set forth in the Federal Credit Union Act of 1934.
That's what happened to Lockheed Federal Credit Union in Burbank.
The 1934 Federal Credit Union Act says that members of a credit union must share a ``common bond.
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Added Annette Romm, vice president of marketing for Premier America Federal Credit Union in Chatsworth: ``We will try to get this reversed.
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the leader in innovative, open ATM solutions that optimize banking processes, today announced that Tyndall Federal Credit Union of Panama City, Fla.
Johnson, a former board member of the Western Payments Alliance (WesPay) and the President and CEO of WesCorp Federal Credit Union, was honored on Sunday by the NACHA-The Electronic Payments Association for his contributions to the nation's payments industry.
American Airlines Federal Credit Union, the largest credit union in the state of Texas, was selected by the National Association of Federal Credit Unions (NAFCU) as the 2001 Federal Credit Union of the Year for building stronger online member relationships with LivePerson.
The National Association of Federal Credit Unions represents the interests of federal credit unions before the federal government and the public.

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