What Is A Credit Union?
A credit union is a member-owned, not for profit cooperative financial institution formed for the purpose of encouraging savings by offering a fair return, using those savings to make loans at competitively low interest rates to members, and providing other financial services. Members are united by a common bond of association and democratically operate the credit union under state or federal regulation. There are more than 7500 credit unions in the United States with nearly 93 million credit union members nationwide.
Since 1984, credit unions have funded their own federal deposit insurance fund on a pay-as-you-go basis. Like the Federal Deposit Insurance Fund coverage, NCUSIF protects member deposits to $250,000 and is backed by the full faith and credit of the U.S. Government.
For an informational brochure on "How Your Funds are Federally Insured", provided by NCUA, click here.