Federal Credit Union - FCU

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Federal Reserve Bank

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

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

    An industry trade group founded in 1967 that represents federal ...
  4. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  5. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  6. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
Related Articles
  1. Tired Of Banks? Try A Credit Union
    Retirement

    Tired Of Banks? Try A Credit Union

  2. The Best Way To Borrow
    Retirement

    The Best Way To Borrow

  3. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  4. How To Break Up With Your Bank
    Options & Futures

    How To Break Up With Your Bank

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center