This structure is vastly different from the for-profit sector where stockholders vote according to the number of shares of stock they own. For instance, credit unions usually charge lower interest on credit cards than most other providers, and many credit unions charge no annual card fee. Federal and state credit union laws restrict credit union to serving only the groups specified in their charters. In recent years, a broader interpretation of common bond has enabled credit unions to extend their services to more consumers. T he biggest difference between credit unions and other financial institutions is that the members are the owners.
Credit unions exist solely to serve their member-owners, who are the only depositors.
The benefits of ownership are returned to the member in the form of lower rates, bigger dividends, and personal service. C redit unions offer a wide array of services each designed to meet the particular needs of that credit unions member-owners.