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 ?
He noted that the credit union movement grew out of the Great Depression, when bank closures left many Americans without access to reasonably priced financial services.
Everyone who joins a credit union becomes a "shareholder", acquiring a share for opening up an account.
In addition to The Complete Credit Union Solution data processing platform, SECU is also implementing Open Solutions' integrated solutions including Interactive Management Center (IMC), cView[TM] (CRM/business intelligence), Channel Management Center (an interface between disparate systems), premium overdraft protection and telephony solutions.
Merlo said the decision to change from a federally chartered to a state- chartered credit union has paid off with an $18 million increase in deposits.
The Incident Response Plan was designed to assist institutional compliance with the guidelines provided in 12 CFR 748 (Appendix B)* as outlined by the National Credit Union Administration.
These are not mom-and-pop operations but financial conglomerates that bear no resemblance to the niche institutions that Congress envisioned when it created the federal credit union charter in the 1930s,'' the American Bankers Association said in a statement.
The credit union also plans on rewarding members for the majority of its products and services that they already use, in addition to new enrollments.
based American Bankers Association - charge that community, as originally intended in the Federal Credit Union Act of 1934, means a ``small area, neighborhood and rural district,'' said John Stafford, spokesman for the CBA.
Integration with major credit union core systems, including Summit, Symitar and ULTRADATA, Users, and XP;
Bankers contend that such ability, which was granted by the National Credit Union Administration, violates the Federal Credit Union Act of 1934, which they say allows only people with one ``common bond'' to constitute the membership of a credit union.
Peres continues, "We carefully reviewed banking system options and believe Open Solutions' commitment to Canadian credit unions, coupled with the advanced technologies and services it offers, will enable our credit union to improve its operational efficiencies while supporting our mission of providing quality financial solutions and unsurpassed service to members of our community.
Over the past decade, Valley Credit Union has experienced an extremely healthy financial profile, posting at the end of the recession-plagued 1992 a capital-to-asset ratio of 8 percent, assets cresting $115 million and a remarkable loan-to-deposit ratio of 96 percent.

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