Federal Credit Union Information

Federal Credit Unions were created in 1934 when President Roosevelt signed the Federal Credit Union Act. Every so often the Federal Credity Union Act is amended to keep the Act relevant and up-to-date.

A Federal Credit Union is a cooperative financial institution that is charted by the federal government and owned by its members. Federal Credit Unions provide its members a safe place to save and borrow money at reasonable interest rates. Credit Union members receive surplus income in the form of dividends.

Federal Credit Unions are chartered, supervised, and insured by the National Credit Union Administration (NCUA). The NCUA is an agency of the United States federal government. Similar to deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC), the NCUA provides share insurance for Federal Credit Unions. The security this provides to credit union members is invaluable because no member has lost any money from a federally insured credit union.

Federal credit unions always encourage their members to save money on a regular basis to help build financial security for themselves and their families. Members of federal credit unions provide each other with loans and home mortgages from their pooled savings.

In addition to savings and loans, federal credit unions offer many different financial services to credit union members. Many federal credit unions offer credit cards, debit cards, share drafts, and retirement accounts. Some federal credit unions have even expanded their services to provide real estate, business loans, and guaranteed student loans. Many federal credit unions are now providing members Internet access for financial transactions.

Every federal credit union has a that details eligibility for membership. Credit union membership is typically limited to groups of people that have similar employment, residence, or associations specified by the charter.

If you are eligible to join a credit union, you will need to fill out an application and purchase one share to join. Each credit union determines the value of one share, but in most cases it is $5 to $10. By purchasing at least one share in the credit union, you actually become an owner and you can vote in the election of officers.

When members deposit money into a federal credit union, their savings are insured to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF) and backed by the U.S. Government. Credit union savings are also protected by bylaws and Provisions in the Federal Credit Union Act.