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What is a Credit Union?

Everyone needs a place to stash their cash. But some people want their money to do more than just sit there, gathering virtual dust. Credit unions, by definition, are nonprofit financial cooperatives that provide a community approach to finance, along with checking and savings accounts, credit cards, home, auto, small business and education loans.

A credit union provides services to a group of individuals who are united by a common bond: where they work, live, go to school or worship. Members are not just customers of the credit union – they own it.

Credit unions pool the deposits of their members to fund low-interest loans, reducing or eliminating reliance on outside capital. A member saving for retirement provides the funds for another member’s car loan. One member preparing for her first home purchase virtually provides tuition for another’s son to attend his first semester of college.

Any profits generated by the credit union are distributed and used to the benefit of all members — with higher savings rates, lower interest rates on loans and reduced fees on credit cards. Often dividends are paid annually.

“Money can’t buy happiness,” or at least that’s how the old saying goes. Yet, when you become a credit union member, your money funds happiness – all while collecting dividends…completely dust-free.

Thank you for being part of City CU!