What is a Credit Union?

A credit union is similar to a bank, however, the only difference between a credit union and a bank is that credit unions are established solely for the benefits of their members and not for profit-making. Hence, credit unions are non-profit marking financial institution that provides traditional banking services. Credit unions can be formed by both large and small corporations. The size of credit unions also varies. We have the small credit union which comprises only of volunteers and the large credit unions with thousands of participants. The participants that make up the credit union are usually responsible for the creation and management of the union. Hence, decisions on how to run and manage the credit union is a collective one. Since credit unions are not created to make a profit, they benefit from the United States task exempt rule.Credit union management follows a simple rule. The participants of the union contribute their money into the union – technically, they are buy...

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