Credit Unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other.

These factors allow credit unions to pay dividends to their members (not to shareholders) and offer them lower loan rates, higher savings rates and fewer service fees. The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions. They also insure savings in federal and most state-charted credit unions across the country through the National Credit Union Share Insurance Fund (NCUSIF). A federal fund backed by the full faith and credit of the United States government.

All of the above information was quoted by America's Credit Unions from www.creditunion.coop