As a financial institution, credit unions offer many of the same products
and services just like banks but banks have more branch offices than credit
unions. Credit unions have insurance through the National Credit Union
Administration, which is a government agency similar to the FDIC. It also offers
better rates and have fewer fees than other financial institutions. What makes
it unique is that it can only serve people who fit in their “Field of
Membership” which is way different from the bank which you can become a
customer of any bank. It offers people the opportunity to pool their resources
(deposits) to provide products and services (loans, transactional accounts)
because of being a financial cooperative. The people at the credit union who have
accounts are the owners of the financial institution. There are no outside
investors, like you find with banks. All generated incomes are put back into
the institution in the form of new products & services, better rates, fewer
and lower fees and bonus dividends since credit unions are not-for-profit.
