credit union

A not-for-profit financial institution formed by employees of a company, a labor union, a professional association, or some other group and operated as a cooperative. Account holders are members, rather than customers. Credit unions may offer a full range of financial services including loans and checking and savings accounts. They typically pay higher interest rates on deposits and charge lower rates on loans than commercial banks. Federally chartered credit unions are regulated and insured by the National Credit Union Administration, which charters and supervises federal credit unions. Depositor’s accounts are protected up to $100,000 through the National Credit Union Share Insurance Fund (NCUSIF). There are more than 80 million credit-union account holders in the United States.