A credit union is like a smaller, more community focused, not-for-profit version of a bank. Just like at any bank, you can open an account, deposit money, and take out a loan.
When you open an account at a credit union though, you’re considered a member, as opposed to a customer. And while banks are typically owned by investors and serve customers, credit unions are both owned by and serve their members! Because of that distinction, profits generated by credit unions are distributed back to its members, including you, in the form of more personalized service, higher interest rates on savings accounts, and lower interest rates on loans and mortgages.
Your local credit union can take care of all of your banking needs, typically without any of the fees you run into at banks. If you’re even a little bit unhappy with your bank, I highly suggest you look into becoming a member of your local credit union.
What do you think of credit unions? Are you a member of one? Let me know in the comments.