What is a Credit Union?

Usually formed around a common bond, such as place of employment, a credit union’s main purpose is to give its cooperative member-owners a place to save or borrow.

Member-owned credit unions are not for profit; they exist only to serve their membership. As a result, credit unions are usually able to pay higher dividends on savings – while charging lower interest rates on loans.

A credit union works by allowing members to deposit money into a variety of savings and investment accounts – and then lending that money to other members who pay the money back with interest. After operating expenses and reserve requirements are met, the remaining loan income is returned to all members in the form of dividends and other financial services.

Today, more than 12,000 member-owned, cooperative credit unions serve over 70 million people in the United States, and are consistently rated higher in customer satisfaction than any other type of financial institution.

Many credit unions, including San Francisco Federal Credit Union, belong to the Shared Branch network. With Shared Branching, credit unions from all over the country share facilities to give members thousands of convenient locations to perform transactions just as if they were in their home credit union. Learn more in the video below:

To learn how you can join the credit union today, please click here, or contact us at (415) 775-5377, option 4 or contacts@sanfranciscofcu.com.