An Employees Credit Union is a not-for-profit financial cooperative that serves their member by giving them lower charges for service, high dividend rates on saving (share) accounts and rational loan rates. They operate for the sole benefit of its members. Since an Employees Credit Union is a financial corporative the members of the Credit Union actually own the credit union. Their reason to run this business is to benefit its member’s financial lives, not to just make money for themselves.

Additionally, credit unions usually provide its members more benefits than a regular bank offers. The credit unions are usually able to give much better rates on car, truck and personal loans. They also offer higher dividends on the savings accounts held in their trust. Since members of credit unions actually own part of the credit union, the benefits are usually better than banks and they credit union tellers will get to know you mover personally there than at a large bank.

Credit Unions is a form of monetary organization formed by a number of individuals for a desired purpose. People belonging to this credit union usually contribute their monetary resources, talents, expertise as well as their properties in order to serve each member through financial assistance.

Generally, credit unions are built not for the sole purpose of earning an income, it is controlled by member individuals, and managed by boards on voluntary basis. As far as banks and other financial institutions is concerned, it's ownership rests with stockholders and its policy making body is the board of directors, which holds the majority shares of stocks.

With regards to interest rates, credit union offer a much lower rate compared to banks due to the fact that it is not liable to pay state, as well as federal taxes.

"President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have been gunning for them pretty much ever since."

Here are the salient points on Credit Union vs Banks:

The differences between a credit union and a bank as substantial. First, the bank is owned by the workers of the bank and the investors to make money for those investors. A credit union is owned by the members of the credit union, so in essence, if you are a member then you own part of the credit union.

A credit union is a non profit business, unlike a bank where the profits are returning to the investors. What this means if you do business with a credit union you will benefit with lower interest rates on loans and higher dividends.

Credit unions are also FDIC insured and in many cases those that belong to a credit union get better personal service than those at a bank since the credit union is smaller so there are less people the staff has to interact with.

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Hello @renaldob! I am a member of a credit union in the local school where I am working as a part time teacher. I am not very knowledgeable about it but based on my experience it helped me a lot in my finances. I was able to loan money with low interest and it was very convenient and and quick to get a loan albeit the loan is not very high but it is more than enough to help me whenever I am short of budget.

A credit union is a financial institution that is cooperative in nature and owned as well as controlled by members and operates to promote the purpose of promoting thrift, having a credit that has reasonable rates and also gives offers other financial services to its members.
There are many credit unions that exist for the development of the community or sustainable international development in the locality. Credit union system that exist all over the world differ in terms of total system assets and average institution asset size. They range from volunteer operations with few members to institutions with several billion dollars in assets and over thousands of members.
Credit union is smaller than banks. For instance, the average U.S. credit union has $93 million in assets compared to U.S. bankthat has over $1/53 billion as of 2007.