credit union

An organization formed by employees of a company or institution to make personal loans at low interest rates to all employees of that company or institution.

Credit Union

Member-owned financial co-operative. These institutions are created and operated by its members and profits are shared amongst the owners.

Investopedia Commentary

As soon as you deposit funds into a credit union account, you become a partial owner and participate in the union's profitability. Credit unions are formed by large corporations and organizations for their employees and members.

See also: Bank, Merchant Bank, Private Banking, Retail Bank, Thrift Bank

credit union

A nonprofit cooperative financial institution that provides credit to its members. Credit unions often pay slightly higher rates of interest on passbook-type savings accounts and charge lower rates on consumer loans.