What is a Credit Union?

A credit union is a member-owned, cooperative financial institution owned and operated by its members. These members -- who are united by a common bond of employment, association, or community -- democratically operate the credit union under provincial regulation. There are more than 11,000 credit unions in Canada and the United States, serving more than 77 million members.

What are the Benefits of Credit Union Membership?

Membership is the most distinctive feature of the credit union system. Credit unions exist to serve the financial needs of their member-owners. Members enjoy such shareholder privileges as: seeking election to the credit union's board of directors; sharing in the distribution of credit union earnings; and having input in the credit union direction locally. Through their credit union delegate, each member also has a say in provincial and national matters.

Credit union members can take advantage of the full range of products and services available. Having shareholder members allows credit unions to tailor products and services to meet the requirements of their specific membership. Credit union members also benefit from the existence of provincial deposit insurance/guarantee corporations. These entities protect the deposits of credit union members .

Who Can Join a Credit Union?

Credit union members generally share a common bond such as geographic location, same employer or line of work, or by association (through church, ethnic, or organization). Provincial credit union regulations restrict credit union to serving only the groups specified in their charters .

What Types of Services Do Credit Unions Offer?

Because each credit union is autonomous ( free to act independently), the financial products and services offered vary. Like other major financial institutions, most credit unions are full-service institutions that offer individuals and businesses: savings and chequing accounts, investments, loans, lines of credit and mortgages, debit cards, credit cards, mutual funds, wealth management services, trust and insurance services¹ .

¹ Trust services are provided through Concentra Trust and insurance services are offered through Credit Union Insurance Services (CUIS).

How Do Credit Unions Differ From Banks And Other Types of Financial Institutions?

The biggest difference between credit unions and other financial institutions is that the members are the owners. Credit unions enjoy the unique advantage of being highly receptive to the special needs of their members. As owners, members share in the distribution of credit union earnings, enjoy warm personalized service from highly trained staff and receive excellent interest rates. Being locally based and locally owned, credit unions play a major role in fostering community well-being by: investing in community projects, sponsoring various community activities and events, initiating public financial education programs and promoting community economic development.