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What is a credit union?

A credit union is a not-for-profit cooperative financial institution, owned by the people who use its services. Members of a credit union are its customers. Credit unions exist to provide a safe, convenient place for members to save money and borrow funds at reasonable rates. Increasingly, consumer publications are recognizing the value credit unions provide consumers. Consumer Reports (March 2007) stated, "Those in the know have always understood that credit unions offer the best banking deals around.”

What makes a credit union different from a bank? Like credit unions, banks accept deposits and make loans; unlike credit unions, banks are in business to make a profit. Banks are owned by stockholders whose interests include earning a return on their investments. Credit Unions are owned by members who elect a volunteer board of directors to help keep decision-making focused on the needs of its members. Because of their not-for-profit consumer cooperative structure, Wisconsin’s state chartered credit unions are exempt from federal and state income taxes, but pay property tax, payroll tax, and sales tax.

Credit unions, like other financial institutions, are closely regulated. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. Deposits are insured up to $100,000 per member ($250,000 for IRA accounts).