Credit union is a cooperative financial institution. The members are the owners and controllers of a credit union. It is operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members.
The World Council of Credit Unions (WOCCU) defines a credit unions as a not-for-profit cooperative institution. In practice however, legal arrangements vary by jurisdiction.
There are many credit unions to further community development or sustainable international development on a local level.
Credit unions are called in different names in different places (e.g. in many African countries they are called "savings and credit cooperative organizations" (SACCOs), "to emphasize savings before credit." In Spanish-speaking countries, they are often called cooperativas de ahorro y crédito, but in Mexico they are typically called a caja popular. French terms for "credit union" include caisse populaire and banque populaire. Afghan credit unions are called "Islamic investment and finance cooperatives" (IIFCs) and comply with Islamic banking practices.)
Credit union is not like bank and other financial institutions. The members who have accounts in the credit union are the owners of the credit union and they elect their board of directors in a democratic voting system regardless of the amount of money invested in the credit union.
A credit union's policies governing interest rates and other matters are set by a volunteer Credit unions offer many of the same financial services as banks with different terminology; e.g. share accounts (savings accounts), share draft accounts (checking accounts), credit cards, other credit facilities (loans) share term certificates (certificates of deposit), and online banking.
Credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health. In the micro-finance context, credit unions provide a broader range of loan and savings products at a much cheaper cost to their members than do most micro-finance institutions".
