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Federal Credit Union (FCU)

What is 'Federal Credit Union - FCU'

A credit union chartered and supervised by the National Credit Union Association (NCUA), a federal government agency that functions much like the FDIC. Federal credit unions operate like retail banks with one major exception: every credit union member is also a partial owner of the institution. Credit unions operating under the label "federal" are not directly run by the government or limited to government employees. Rather, they've simply opted to organize themselves under federal credit union regulations instead of state banking laws.

Explaining 'Federal Credit Union - FCU'

Some feel that credit unions may be one of the best-kept secrets of consumer banking. Since these organizations are essentially owned by the people who deposit money with them, credit union members often enjoy higher rates on their savings accounts and lower costs of borrowing than customers at traditional banks. Making credit unions even more attractive is the fact that deposits are protected by the the U.S. Treasury similar to FDIC insurance, as long as the credit union is either federally chartered or a state-chartered credit union that has opted to participate in NCUSIF.


Further Reading


US financial services consolidation: The case of corporate credit unions
link.springer.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

The economic impact of the federal credit union usury ceilingThe economic impact of the federal credit union usury ceiling
onlinelibrary.wiley.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

Do credit unions use their tax advantage to benefit members? Evidence from a cost functionDo credit unions use their tax advantage to benefit members? Evidence from a cost function
www.sciencedirect.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

The Place of Common Bond: Can Credit Unions Make Place for Solidarity Economy?The Place of Common Bond: Can Credit Unions Make Place for Solidarity Economy?
www.tandfonline.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

The corporate credit union crisis: Does it call for reform or re-engineering?The corporate credit union crisis: Does it call for reform or re-engineering?
link.springer.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

Conversions and capital of mutual thrifts: connections, problems, and proposals for credit unionsConversions and capital of mutual thrifts: connections, problems, and proposals for credit unions
www.ebhsoc.org [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …

The effect of the common bond and membership expansion on credit union riskThe effect of the common bond and membership expansion on credit union risk
onlinelibrary.wiley.com [PDF]
… that a significant percentage of these combinations were either mandated (ie, assisted mergers) or encouraged by the National Credit Union Administration (NCUA), as federal regulator and … US FINANCIAL SERVICES CONSOLIDATION 235 … Corporate credit union Year Result …



Q&A About Federal Credit Union (FCU)


What makes up the difference between traditional banks and Federal Credit Unions?

The main difference between traditional banks and Federal Credit Unions is that while both offer checking accounts, savings accounts, mortgages, lines of credit and other services, only Federal Credit Unions are owned by their customers who become partial owners when they join the organization. As an owner you elect board members who oversee management decisions at your local branch or district office which may be located in your neighborhood or town depending on where you live or work in your community . You can also share in any profits generated through interest paid on deposits or fees charged for lending money out if you choose to do so . Traditional banks are privately owned businesses whose primary goal is making money for their shareholders through interest paid on deposits and fees charged for lending money out . They don't pay dividends back to depositors nor do they allow depositors to vote on how their bank should be run . Since

How does a Federal Credit Union differ from other banks?

In addition to being owned by its members, Federal Credit Unions operate like retail banks with one major exception – every member is also a partial owner of the institution. This means that members can vote on important matters such as electing directors and approving loans. Members can even share in profits if they choose to do so. Federal Credit Unions are not directly run by the government or limited to government employees; rather, they've simply opted to organize themselves under federal regulations instead of state banking laws.

Are all credit unions federally chartered?

No, not all of them are federally chartered. Some have opted to organize themselves under state banking laws instead of federal regulations.

What is a credit union?

A credit union is a financial institution that has been chartered and supervised by the National Credit Union Association (NCUA), a federal government agency.

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