Learn More About Credit Unions

A credit union is a not-for-profit financial cooperative owned by its members, who are connected by a shared bond such as where they work, live, or belong to an organization. Credit unions provide many of the same services as banks—including savings and checking accounts, mortgages, and personal loans—but focus on serving their members rather than generating profits.

Credit unions operate as not-for-profit financial cooperatives, while banks follow a for-profit business model. Banks are owned by shareholders and focus on generating profits for those investors. In contrast, credit unions are owned by their members—those who use their services—and earnings are returned to members through better rates on loans and savings, as well as lower fees. Each credit union member has an equal vote in electing the board of directors, and only members can serve on the board, reinforcing the cooperative structure.

Credit unions are regulated, but not by the same agency that oversees banks. Federally chartered credit unions are supervised by the National Credit Union Administration (NCUA), their dedicated federal regulator. State-chartered credit unions are overseen by their state’s regulatory agency. If “Federal” is part of a credit union’s name, it indicates they operate under a federal charter.

Yes. Deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund (NCUSIF), which covers up to $250,000 per depositor. This coverage offers the same level of protection as the insurance provided to banks, ensuring your money is safe.

Credit unions are built around a common bond, such as where someone lives, works, or belongs to an organization—but eligibility is often broader than people think. Many credit unions are open to family members of existing members, or to anyone who lives in a certain geographic area. While not everyone can join every credit union, most people can find one they’re eligible to join.

Membership in a credit union is typically for life. If eligibility was based on your job and you leave that employer, you can still remain a member—as long as your account stays in good standing. Once you join, you don’t have to leave the credit union, even if your circumstances change.

Yes. Many credit unions participate in shared networks, giving members access to nearly 30,000 surcharge-free ATMs nationwide. This cooperation among credit unions makes it easy to manage accounts, even when traveling or living far from a local branch.

Joining a credit union is affordable—many require as little as $5 to open an account, and others may ask for $25. Interest-bearing accounts might have minimum balance requirements, but these are typically lower than those at banks. Many credit unions also offer checking accounts with no fees and no minimum balance.

Yes. Most credit unions offer online and mobile banking tools, including mobile apps, remote check deposit, bill pay, and account alerts.

Credit unions offer a full range of financial services, including savings and checking accounts, credit cards, auto and home loans, mobile banking, and financial education resources—often with lower fees and better rates than banks.