Federal Credit Union - FCU


DEFINITION of 'Federal Credit Union - FCU'

A credit union chartered and supervised by the National Credit Union Association (NCUA), a federal government agency that functions much like the FDIC. Federal credit unions operate like retail banks with one major exception: every credit union member is also a partial owner of the institution. Credit unions operating under the label "federal" are not directly run by the government or limited to government employees. Rather, they've simply opted to organize themselves under federal credit union regulations instead of state banking laws.

BREAKING DOWN 'Federal Credit Union - FCU'

Some feel that credit unions may be one of the best-kept secrets of consumer banking. Since these organizations are essentially owned by the people who deposit money with them, credit union members often enjoy higher rates on their savings accounts and lower costs of borrowing than customers at traditional banks. Making credit unions even more attractive is the fact that deposits are protected by the the U.S. Treasury similar to FDIC insurance, as long as the credit union is either federally chartered or a state-chartered credit union that has opted to participate in NCUSIF.

  1. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  2. Monetary Policy

    Monetary policy is the actions of a central bank, currency board ...
  3. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  4. State Bank

    A financial institution that has been chartered by a state to ...
  5. National Association Of Federal ...

    An industry trade group founded in 1967 that represents federal ...
  6. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
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