This structure is in contrast to for-profit, public companies where stockholders vote according to the number of shares of stock they own. Their nonprofit status enables credit unions to operate at a lower cost than many for-profit institutions and helps them to offer competitive loan and savings rates. For instance, credit unions usually charge lower interest on credit cards than most other providers, and many credit unions charge no annual card fee. In credit unions, the members are the owners. Regardless of their size or their field of membership, credit unions are different than for-profit financial institutions.
Credit unions exist solely to serve their member-owners, who are the only depositors.
Banks and other financial institutions exist to make money for their stockholders, not for their depositors. How Credit Unions Operate Members put their money into a common fund made up of individual accounts. Members elect officials from amongst themselves to manage the fund. Each member has one vote Members can obtain loans from the fund and are charged interest for use of the money. The interest accrued pays the cost of running the credit union.