Definition:
A cooperative non-profit financial institution formed by a non-financial group like a labor union, community association, or veterans group that provides low-cost financial services as well as dividends and profit-sharing to its members. Credit unions are owned and controlled democratically by their members. Since credit unions are non-profit they are often able to provide lower rates on loans and credit and higher rates on savings and investments than commercial or investment banks, but like banks, credit unions still carry insurance to protect consumers against sudden financial collapse.
