What is a credit union and are all credit unions associated with one another?
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A credit union is a financial institution that is owned by its members, members of a credit union are basically customers but their is a pretty important distinction, Often members vote annually to determine who is on the board of said credit union. Also in most cases you pledge say $5 that is your membership deposit that you cannot spend unless you leave.
Typically the credit union gets credit from its members in the form of deposits and loans the funds out to members only. Often they offer better interest rates both ways (lower to borrow and higher returns) as they technically want what is best for both sides of the transaction and have two reasons to lower overhead.
Banks are usually owned privately and lowering costs are solely a matter of competition and not shareholder preference.
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