Credit unions are democratically controlled by their members. The members, themselves, elect a board of directors from among the membership, which is responsible for setting policy. Day to day operations are handled by paid professionals, or in the case of very small sized credit unions, by volunteers. Credit unions do not make a profit for a select group of stockholders. While a credit union needs income to provide services and benefits such as dividends on savings, its primary purpose is to serve members.
Credit unions promote thrift and welcome savers.
They advocate the wise use of credit and will make small loans that other financial institutions would consider too small for processing. The fund is backed by the full faith and credit of the U.S. government. A. A credit union receives its authority to operate by obtaining a federal or state charter. Not everyone may join a credit union. Each credit union serves a specific field of membership as defined by its charter.