Credit union

Definition

A credit union is a member-owned financial cooperative that provides traditional banking services like savings accounts, loans, and other financial products to its members. Unlike banks, credit unions return profits to their members in the form of lower fees and better interest rates.

Related terms

Savings Account: A bank account that earns interest over time, offering a safe place for individuals to store their money.

Loan: A sum of money borrowed from a financial institution or individual that is expected to be paid back with interest.

Interest Rates:

The percentage charged on borrowed money or paid on savings accounts, essentially the cost of borrowing money or the reward for saving