Credit union has membership requirements
Credit union is a member-owned financial cooperative which is controlled by its members and operated on the principle of people helping people. Credit union offer the same services as banks, but the profit cycles back to members instead of stockholders
To join a credit union, you have to be a part of that credit union's field of membership. Credit unions have membership requirements based on place where you live, work or worship, or through associations or causes that you’re involved. If you qualified, usually you pay a one-time membership fee and a deposit of up to $25.
At credit unions, the profits are come back to members through educational programs, low fees, better rates on loans and higher rates on savings. At credit unions, one member’s money can become another member’s loan for house, car or business.
One of credit union products are, "share draft accounts” which is checking accounts, “share accounts” which is savings accounts and “par value” which is the minimum opening deposit. If you need a loan for a car or a home, a credit union can be a good option.
Grade: 9
Subject: social studies
Chapter: credit union
Keywords: credit union
