Credit Union
A member-owned financial cooperative that provides banking services to its members.
Because members are the owners, credit unions often carry lower fees and lower loan rates. A credit union lends out the very deposits its savers place with it.
Often Confused With
- Commercial Bank
- A commercial bank is owned by shareholders; a credit union is a cooperative owned by its members.
Taught In
See Also
3.1.C.2 · 3.2.A.3