A credit union is a cooperative financial institution, owned and controlled by the people who use its services (its members). Credit unions serve groups that share something in common, such as where they work, live, or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. Credit unions, like other financial institutions, are closely regulated.
What makes a credit union different from a bank? Like credit unions, these financial institutions accept deposits and make loans, but unlike credit unions, they are in business to make a profit. Banks, as well as savings and loans, are owned by groups of stockholders whose interests include earning a healthy return on their investments.
Once you deposit money in a credit union, you become a member, (not just a customer) because your deposit is considered your share of the ownership in that credit union.