Because the ability to borrow from banks was greatly restricted, farmers pooled together their funds to lend to each other. Members put their money into a variety of savings and investment accounts. This money is then lent to members who pay interest. After operating expenses and reserve requirements are met, the remaining loan income is returned to the members as dividends and other financial services. As a result, credit unions are able to pay high dividends on savings and charge low interest rates on loans.
Credit unions are cooperatives.
Members who share a common bond join together in a cooperative form to encourage savings and to make loans to each other. After ensuring reserves, credit unions distribute surplus funds to members as dividends, reduced interest on loans and improved services. Elected by the members, unpaid volunteers who serve on board of directors, credit committees and supervisory committees are the backbone of the credit union movement. Crane Federal Credit Union was chartered in 1955. We are member owned, governed by a member elected volunteer board, not for profit and tax exempt.