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. National Credit Union Administration ...

    An agency of the United States federal government that was created ...
  3. Private Banking

    Personalized financial and banking services that are traditionally ...
  4. Financial Cooperative

    A financial institution that is owned and operated by its members. ...
  5. Demutualization

    When a mutual company owned by its users/members converts into ...
  6. Mutualization

    The process of changing a firm's business structure so the owners ...
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. Does shopping for the best interest rate affect my credit score?

    Shopping for interest rates does not necessarily affect a person's credit score. When a borrower submits an application to ... Read Full Answer >>
  3. What are the pros and cons of online checking accounts?

    Online banking offers a convenient alternative to keeping your checking account with a brick-and-mortar bank. With an online ... Read Full Answer >>
  4. How can a creditor improve its Average Collection Period?

    In accounts receivable management, the average collection period refers to the amount of time it takes for a creditor to ... Read Full Answer >>
  5. Why would you keep funds in a money market account and not a savings account?

    Most banks offer both money market accounts and savings accounts for depositors, although money market accounts are less ... Read Full Answer >>
  6. When are you legally required to get a letter of credit?

    You are legally required to obtain a letter of credit to guarantee a successful and risk-free transaction when dealing in ... Read Full Answer >>
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