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 ?
color) Wescom Credit Union, based in Pasadena, opened its 26th branch Monday inside an Albertsons supermarket in Calabasas.
Credit unions with assets greater than $10 million, which choose to have an audit, must have that audit performed by a CPA or an appropriately licensed public accountant.
Indeed, Gallup Polls show that shareholders are more satisfied with the services they receive at a credit union than bank customers are with their institutions.
Additionally, the SECU leadership team collaborated with employees from Bethpage, Bellco and First Tech credit unions to learn first-hand about their specific implementation experiences and to form important synergies.
Today, the credit union has five branches serving customers from 150 local businesses.
Fiserv now provides core processing services to more than one-third of all credit unions with $1 billion or more in assets.
Bankers contend the federal regulator gave credit unions too much leeway in their community charters, hurting banks.
Media interface - Identity Theft 911 will work with the credit union to create a point-by-point action plan to respond to media inquiries in order to provide effective communications from the moment a breach occurs.
SOURCE: California Bankers Association; National Credit Union Administration; Bauer Financial Reports, Coral Gables, Fla.
The bottom line is that the credit union can design a unique program to offer any rewards it wishes," said Tankeloff.
But PMFCU switched to a community designation in January after the credit union started losing members due to government downsizing.
Teres Solutions SAIL software family is used by some of the nation's most successful credit unions and financial institutions to automate their indirect and direct lending processes.

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