History

The credit union idea originated over 130 years ago in Bavaria, Germany. A mayor of a small town was so appalled by the poverty of farmers and workers in his region, that he organized a cooperative savings institution to permit them to pool their money and make loans to each other.

His idea became popular and in 1900, the first credit union was organized in Canada. In 1909, the first U.S. credit union opened in Manchester, New Hampshire. The idea soon spread throughout the nation, and with the passage of the 1934 Federal Credit Union Act, credit unions could be organized anywhere in the U.S. Despite the Great Depression, credit union growth was strong.

What is a Credit Union?
A credit union is a not-for-profit financial cooperative organized by people who share a common bond. It is owned and operated by its members who pool their financial assets to provide themselves funds for loans and a wide variety of financial services. The essential difference is that credit union services are offered to members at rates that are frequently more favorable and competitive than other financial institutions.

Credit unions exist to serve their members and they are owned and directed by their members. The key difference between credit unions and other financial institutions can be found in the credit union motto: Not for profit, not for charity, but for service.

Why choose a Credit Union over a Bank?
Unlike a traditional bank, credit unions are not for profit, democratic institutions. While the mission of the credit union is to provide services to its members, the mission of the bank is to make a profit for their stockholders. Credit unions often charge no fees or lower fees for services, don’t require high minimum deposits, and make loans to members that other institutions may not make. Banks on the other hand usually charge high fees for services, require higher minimum balances, and charge higher rates for loans.