A federal credit union is a financial cooperative chartered by the federal government and owned by its members. Federal credit unions offer members a safe place to save and borrow at reasonable rates.
Surplus income is returned to members in the form of dividends.
Originating in Europe, credit unions began organizing in America in the early 1900s to promote thrift among their members. Credit unions then and now serve many left unserved by traditional banking incitations and provide an alternative to oppressive loan-rate charges. Today's credit unions remain unique financial institutions with a philosophy to operate not for profit but for service. Annual polls show that credit unions lead the financial community year after year in providing top-quality personal service to millions of Americans. Credit union members provide one another with consumer and, in many cases, home mortgage loans from their pooled savings.