Credit Unions are not for profit institutions. They are mutual, co-operative societies which are governed by a volunteer Board of directors elected each year from the membership. Irrespective of how much you have in savings you are only entitled to one vote at the AGM. You must become a full member of a Credit Union in order to save with it

How does a Credit Union differ from traditional financial institutions like banks and building societies? The main difference is that members actually own the credit union of which they are a member. It is a co-operative institution and as such it is able to set its own interest rates. The ability to set its own rate often results in a higher dividend (interest rate) and a lower charge on borrowings. Like all institutions the credit union needs to make a profit in order to pay staff wages, heat and light, mortgages, and so forth

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

Some major credit unions are now starting to offer the same services as mainstream financial institutions like cheque accounts, credit cards. As a not for profit organization credit unions have a better tax structure than other institutions in the money markets.

Kevin Hart

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