What is a Credit Union?

The credit union cooperative concept originated in Germany during the mid-1800s. A group of farmers, tired of high prices and outrageous interest rates, combined their money to buy supplies and establish a common pool for members to borrow from at lower interest rates.

Today’s Credit Unions are similar.

A credit union is a cooperative, non-profit financial institution formed under special statutory provisions and operates for the benefit of its’ members. A credit union is called a non-profit cooperative because members share in the interest that is earned on loans and investments. Unlike traditional banks, which are owned by shareholders and operate for profit. As a member, you share in your credit union’s success. Deposits provide money for members who need loans and other financial services at competitive rates. Credit Unions look out for their members’ interests and provide a level of service that is not generally available at other financial institutions.

Members usually earn higher dividends on savings and pay lower interest rates on loans. Credit unions typically offer a range of services similar to those of banks, including savings accounts, checking accounts, loans (such as mortgages, auto loans, and personal loans), credit cards, and online banking. Credit unions are regulated and insured, similar to banks, typically by government agencies such as the National Credit Union Administration (NCUA).

To date, credit unions serve over 200 million members worldwide. A credit union is owned mutually by its members, who save together and make loans to one another from the accumulated funds. The objective of the credit union is to help members manage their money by offering a place to save, by encouraging the intelligent use of credit, and by making available other financial services.

How Does It Work?

Each member’s savings are “shares” in the Credit Union. Shares earn interest called “dividends.” Individual share accounts are pooled and the money is distributed to members as loans. Some money is invested in areas permitted by the NCUA. From interest earned on loans and investments, the Credit Union pays its expenses and sets aside a reserve. The remaining income, called “available earnings,” pays the dividends on savings at a rate that is often higher than what other financial institutions offer.

Although Credit Unions have changed over the years to meet the demands of their members, our long-standing philosophy of people helping people has remained the same.

Who Runs The Credit Union?

The Credit Union is controlled by a Board of Directors. Board members are unpaid volunteers elected from the membership. Other members are appointed by the Board to the Supervisory Committee.

It is the board’s responsibility to set policy and give direction to the Credit Union. The Supervisory Committee audits the books and verifies individual accounts to ensure that board policy is carried out.

The Credit Union is administered by a paid staff which conducts the daily business of the operation.

The Credit Union Difference


*APR as low as, ask for details. All rates are dependent on your credit rating.