Credit union members provide one another with consumer and, in many cases, home mortgage loans from their pooled savings. This benefit, and many others, help members achieve financial stability. Each federal credit union's charter specifies who is eligible to join. Membership is limited to groups or people with a common bond of employment, association, or residence specified in its charter. Eligible people must submit a membership application and purchase one share to join.
Deposits are safe.
Savings are also protected by a number of provisions in the Federal Credit Union Act and the Standard Bylaws. All persons handling or having custody of credit union funds must be bonded. The affairs of the credit union and the records of the treasurer are audited by the supervisory committee. The Federal Credit Union Act and the Bylaws provide for setting aside reserves for uncollectible loans. Credit unions may invest surplus funds only in specified investments.