The Credit Union

Credit Unions are not for net income institutions. They are mutual, co-operative societies which are governed by a military volunteer Board of directors elected each twelvemonth from the membership. Irrespective of how much you have got in nest egg you are only entitled to one ballot at the AGM. You must go a full member of a Credit Union in order to salvage with it

How makes a Credit Union differ from traditional financial establishments like banks and edifice societies? The chief difference is that members actually ain the credit union of which they are a member. It is a co-operative institution and as such as it is able to put its ain interest rates. The ability to put its ain rate often consequences in a higher dividend (interest rate) and a lower charge on borrowings. Like all establishments the credit union needs to do a net income in order to pay staff wages, heat energy and light, mortgages, and so forth

To go a member of a credit union you have got to be within a 'common bond' area. A common chemical bond country could be physical e.g. people within a certain edifice or company. It could be geographical e.g. people living within a certain town or distinct area. Many credit unions have got outreach programs into schools.

Some major credit unions are now starting to offer the same services as mainstream financial establishments like check accounts, credit cards. As a not for net income organisation credit unions have got a better tax construction than other establishments in the money markets.