What are Credit Unions??

FinanceTube • February 7, 2013 • 5 Comments

Not for the Profit Cooperative

Credit Unions are not for the Profit Cooperative serving groups or members who have something in common such as employment in a company, membership in an association or residence in a particular Geographic area. More than 82 millions of US citizens are members of Credit Unions.

Attractive savings and loan rates

As not for the Profit Cooperative, Credit Unions generally offer more attractive term deposit savings at low or no fees. Credit Unions are democratically controlled institutions based on how people having controlled principles.

Unpaid Volunteers

Credit Unions are having bunch of directors who are selected by the members who are unpaid volunteers and represent the views of the fellow members who use the Credit Unions.

Credit Unions have no outside stock holders so after reserved are satisfied earning are returned to members as dividends on savings were lowers rates or additional services.

Primarily Engage In Consumer Loans

Credit Unions are primarily engage in consumer loans and the deposits are ensured by the National Credit Unions Share Unions Fund. The NCUSIF protects members deposit up to 200, 50,000 Dollars. Federally and State Charted Credit Unions are regulated and they are subject to many laws and regulations at the State and Federal Government.

Credit Unions are exempt from Federal Income tax. Most states have extended this to a State income and most sales taxes. Credit Unions do pay their property and their sales taxes. Union members pay taxes on their Credit Unions Dividends.