Credit unions are not-for-profit organizations that are owned by their members. They allow individuals to pool their resources together for both lending and savings benefits.
Operating much like banks and other financial service institutions, credit unions offer a wide array of services, including checking and savings, mortgages, credit cards, loans, insurance and investments. In addition, credit unions offer ATM and online services. Some of the larger credit unions have branches throughout their geographical area. Not all credit unions offer all services.
Credit unions have membership requirements, usually representing a specific geographic area and/or a group of companies whose employees are eligible for membership.
Why might you prefer a credit union over a bank? Since credit unions are non-profit, they can offer highly competitive rates. Often high yield savings accounts offer a better interest rates, and loans can be cheaper than those offered by a traditional bank. However, it is always best to compare offers between banks and credit unions to find the best offer.
Want to save more? Make credit card comparisons, and compare home mortgage rates, loan offers and high yield savings with our other offers.