A credit union is a financial institution that is owned and controlled by its members. It is a type of consumer cooperative. The members of a credit union are those who have accounts with the credit union and use its services. Only a member can deposit or borrow money from a credit union.
Credit union membership in the United States is restricted to groups that share a common bond or field of membership. A common bond is typically a place of employment, residence within a limited geographical region, or an association. Credit unions are non-profit entities in the sense that all earnings are paid out to is members in increased interest on deposits or reduced interest rates on loans.
Credit unions often serve low income communities which are largely ignored and poorly served by banks. The most prevalent forms of discrimination by banks include inaccessible credit and excessively high interest rates and fees.
The National Federation of Community Development Credit Unions provides support for credit unions that revitalize low income and minority communities. Additional services and programs are available to credit union that are part of the Federation. We are currently an organizing group member of the Nation Federation of Community Development Credit Unions.
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