Credit Union

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DEFINITION of 'Credit Union'

Member-owned financial co-operative. These institutions are created and operated by its members and profits are shared amongst the owners.

INVESTOPEDIA EXPLAINS 'Credit Union'

As soon as you deposit funds into a credit union account, you become a partial owner and participate in the union's profitability. Credit unions are formed by large corporations and organizations for their employees and members.

RELATED TERMS
  1. Federal Credit Union - FCU

    A credit union chartered and supervised by the National Credit ...
  2. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  3. Retail Lender

    A lender who lends money to individuals rather than institutions. ...
  4. Share Draft

    A type of draft used in credit unions as a way to access funds ...
  5. Financial Cooperative

    A financial institution that is owned and operated by its members. ...
  6. Retail Banking

    Typical mass-market banking in which individual customers use ...
RELATED FAQS
  1. What is the difference between a state and a federally chartered credit union?

    The world of credit unions is divided into two categories: state chartered and federally chartered. Though they share many ... Read Full Answer >>
  2. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  3. What net interest margin is typical for a bank?

    In the United States, the average net interest margin for banks was 3.03% in the first quarter of 2015. However, this was ... Read Full Answer >>
  4. What are the main benchmarks that track the banking sector?

    The appropriate benchmarks for tracking banking sector performance depend on the type of banking. For instance, commercial-only ... Read Full Answer >>
  5. What are the major categories of financial institutions and what are their primary ...

    In today's financial services marketplace, a financial institution exists to provide a wide variety of deposit, lending and ... Read Full Answer >>
  6. How can I tell if a security is considered investment grade?

    It is possible to tell if a security is considered to be investment grade by looking at that security's ratings with either ... Read Full Answer >>
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