A credit union is a cooperative, not-for-profit financial institution owned entirely by its members and operated for the benefit of all who belong. The difference between a bank and credit union is that a credit union's earnings are passed onto members in the form of lower rates, higher savings rates, fewer fees and added or improved services.

Originally organized to promote thrift and provide credit to its members, today's credit union provides members with a safe, convenient place to save and borrow at reasonable rates. Credit unions provide a full spectrum of financial services - just like other financial institutions.

The idea of a cooperative financial institution is not new. The first credit union was formed in Manchester, New Hampshire, in 1909. Today, over 10,000 credit unions with over $480 billion in assets serve more than 79 million people in the United States, with more and more people joining credit unions every year.

Membership in credit unions is not open to the general public. Instead, it is limited to persons sharing a common bond of occupation, community, or association. Most credit unions are organized to serve people in a particular community, group or groups of employees, members of an organization or association (such as a Chamber of Commerce or Home Owner's Association) and residents of a defined area (such as a town or a neighborhood).

Many credit unions have a "once a member, always a member" policy, and most also permit members of the immediate family of a member to join.