A federal credit union is a non-profit, cooperative financial institution owned and operated by its members. Organized to serve and democratically controlled credit unions provide their members with a safe place to save and borrow at reasonable rates. Members pool their funds to make loans to one-another. The volunteer board of each credit union is elected by its members. Not for profit, not for charity, but for service is a credit union motto.

Credit unions are not new. Originating in Europe, credit union history began in the United States when the first credit union was formed in Manchester, New Hampshire, in 1909. Today, over 9,000 credit unions with over $500 billion in assets serve more than 83 million people in the United States. More and more people join credit unions every year and they are pleased with the service. Credit unions have rated No. 1 in customer satisfaction at financial institutions for 10 years according to the American Banker Newspaper's annual customer satisfaction survey.

To join a credit union, you must be eligible for membership. Each institution decides who it will serve. Most credit unions are organized to serve people in a particular community, group or groups of employees, or members of an organization or association. If you are a relative of a credit union member, you are also eligible to join.

Low-income designated credit unions are a unique form of credit union. They serve primarily low-income members in distressed and financially underserved areas. In the past few years, NCUA has emphasized the benefits these institutions provide to the many people who are often unserved by traditional banking institutions. NCUA also manages a Revolving Loan Fund and provides technical assistance grants to low-income designated credit unions.

Corporate credit unions are another form of credit union. While they don't serve people, they play a vital role in the system by acting as a credit union for credit unions. The 32 federally insured corporate credit unions across the country provide investment, liquidity, and payment services for their member credit unions.