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. Private Banking

    Personalized financial and banking services that are traditionally ...
  4. Retail Banking

    Typical mass-market banking in which individual customers use ...
  5. Mutualization

    The process of changing a firm's business structure so the owners ...
  6. Demutualization

    When a mutual company owned by its users/members converts into ...
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. What are some of the well-known no-load funds?

    The capital adequacy ratio promotes stability and efficiency of worldwide financial systems and banks. The capital to risk-weighted ... Read Full Answer >>
  3. How do you calculate payback period using Excel?

    Each financial institution offers similar products for its banking customers, including savings accounts, certificates of ... Read Full Answer >>
  4. What formula can I use to calculate interest on interest?

    Use the compound interest formula to determine the amount of accumulated interest on the principal amount invested or borrowed. ... Read Full Answer >>
  5. What do creditors have to report to credit bureaus?

    Creditors are not required by law to report anything to credit bureaus, although many businesses choose to report on-time ... Read Full Answer >>
  6. 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 >>
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