Definitions for "Credit Unions"
Credit unions are not new - they've been around since the mid-1800s. A credit union is a group of people who save together and lend to each other at a reasonable rate of interest. A commonly used credit union motto is "Not for profit, not for charity, but for service." The Financial Services Authority (FSA) regulates all credit unions in the UK.
Depository institutions whose depositors are called "members" and belong to a particular organization such as a business or government division. Credit unions make loans only to their members for financing homes or personal goods and services.
Financial cooperative organizations of individuals with a common affiliation (such as employment, labor union membership, or place of residence). Credit unions accept deposits of members, pay interest (dividends) on them out of earnings, and provide consumer installment credit to members.
A popular source of non bank finance. Interest rates can be lower than the banks and they operate at a community level. Benefits are greater customers service however there smaller branch numbers can hamper.