credit union

noun

Definition of credit union

: a cooperative association that makes small loans to its members at low interest rates and offers other banking services (such as savings and checking accounts)

Examples of credit union in a Sentence

Recent Examples on the Web Some banks and credit unions make an effort to earn your business, and some don’t. oregonlive, "5 basic features you should expect from your bank," 7 Jan. 2020 That doesn’t account for fees consumers’ banks or credit unions might charge them on the back end for using out-of-network equipment. Joe Rubino, The Denver Post, "King Soopers and Kroger’s new 50-cent fee for cash back is a small charge that could really add up," 10 Dec. 2019 However, in the highly fragmented mortgage industry, where consumers can visit some 30,000 bank branches and credit unions for a home loan, Quicken commanded a market share of just 5.7% in the third quarter, according to Inside Mortgage Finance. Jc Reindl, Detroit Free Press, "Detroit-based mortgage giant Quicken Loans on pace to set home loan record," 11 Dec. 2019 Businesses instead turn to credit unions or are unbanked — paying employees and the IRS in cash, said Heather Smyth, marketing director with Würk. Mallory Moench, SFChronicle.com, "California pot dispensary fights IRS tax case as costs mount for industry," 8 Dec. 2019 Construction reportedly took seven months, with the credit union open for business in November 1999. René A. Guzman, ExpressNews.com, "The secrets of the Alamo replica in Northwest San Antonio," 16 Nov. 2019 The resident contacted the credit union and closed the account. chicagotribune.com, "Pharmacy thwarts attempt to get fake controlled substance prescription filled by caller who posed as a doctor: Glenview police," 15 Nov. 2019 State law requires that its funds be held in one of these 46 banks and credit unions. oregonlive, "Oregon Lottery sends $1.2 million in state funds to the Bank of George, a key partner in state’s new sports betting game," 30 Oct. 2019 Most banks and credit unions are closed, check with your local branch. Leada Gore | Lgore@al.com, al, "Columbus Day 2019: What’s open, what’s closed? Will mail run today? Are banks open?," 14 Oct. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'credit union.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of credit union

1843, in the meaning defined above

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Time Traveler for credit union

Time Traveler

The first known use of credit union was in 1843

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Statistics for credit union

Last Updated

12 Jan 2020

Cite this Entry

“Credit union.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/credit%20union. Accessed 21 January 2020.

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More Definitions for credit union

credit union

noun

Financial Definition of credit union

What It Is

A credit union is a financial institution that is owned and controlled by its members rather than shareholders. The members of the credit union pool their deposits and provide loans and other financial services to each other.

How It Works

The services offered by a credit union include a wide range of financial services, such as savings accounts, checking accounts, credit cards, certificates of deposit and online financial services.

A credit union’s fees, interest rates and levels of service are highly responsive to the needs of its members. Generally, they offer lower interest rates on loans and higher interest rates on savings accounts and certificates of deposit.

Credit unions may be formed among any group of members who have a common interest -- usually community groups or employees of a particular organization. The board members of the credit unions are usually volunteers. Credit unions are generally not-for-profit, so often profits are shared by members.

Why It Matters

Credit unions offer most of the same services as banks, but differ in that individual members are owners and there are generally less assets under management. Because credit unions are usually considerably smaller than banks, they are able to offer more personalized advisory services to their members and they may offer lower cost banking service.

Federal and most state-chartered credit unions in the United States are able to insure their members’ savings accounts through the National Credit Union Administration, a federal organization with the full faith and credit of the U.S. government.

Source: Investing Answers

credit union

noun

English Language Learners Definition of credit union

: an organization that gives small loans to its members at low interest rates and that offers savings and checking accounts

credit union

noun

Legal Definition of credit union

: a cooperative association that makes small loans to its members at low interest rates and offers other banking services (as savings and checking accounts)

More from Merriam-Webster on credit union

Britannica.com: Encyclopedia article about credit union

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