In essence they are mutual organizations operated entirely by and for their members. While for-profit insitutions must make profits for their shareholders, in a credit union any earnings in excess of operational costs are returned to the members in the form of increased interest on savings, decreased rates on loans or other new and improved services. Board members volunteer and are not compensated.
Credit unions offer an important consumer alternative to the for-profit system.
More than 2.1 million Washingtonians belong to credit unions through associations with their employers, communities, churches or occupations. Types of Credit Unions Credit unions vary greatly in size, structure and services. Small credit unions may offer basic savings and loans, larger credit unions may offer checking, credit cards, ATM cards, IRAs, certificates of deposit, and may have several branch locations. Associational credit unions serve members of a particular association or group. Community credit unions serve residents of a particular area or community.