What’s A Credit Union

A federal credit union is a nonprofit, cooperative financial institution owned and run by its members. Organized to serve, democratically controlled credit unions provide their members with a safe place to save and borrow at reasonable rates.  members pool their funds to make loans to one-another.  The volunteer board that runs each credit union is elected by the members.  Not for profit, not for charity, but for service is a credit union motto.

Credit unions are not new.  Originating in Europe, credit union history began in this country when the first credit union was formed in Manchester, New Hampshire, in 1909.   More and more people join credit unions every year and they are pleased with the service.

To join a credit union, you must be eligible for membershipEach institution decides who it will serve.  Most credit unions are organized to serve people in a particular community, group or groups of employees, or members of an organization or association.

President Roosevelt signed the Federal Credit Union Act in 1934, forming a national system to charter and supervise federal credit unions. 

In 1970, the National Credit Union Administration (NCUA) became an independent federal agency and the National Credit Union Share Insurance Fund was formed to insure members’ deposits.