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

Check with your bank Banks, credit unions and corporate HR departments often have discount passes to San Diego attractions. Dawn Gilbertson, azcentral, "San Diego discounts, deals, money-saving tips," 29 June 2018 Checking out rates at a bank and a credit union before heading to a dealership is the best way to compare the interest rates that would be available to you. Susan Tompor, Detroit Free Press, "FCA wants to get into the auto loan business," 1 June 2018 But that service results in the bank or credit union charging the customer an overdraft fee. Paul Gores, Milwaukee Journal Sentinel, "Lawsuit accuses Summit Credit Union of improper overdraft fees," 17 May 2018 The merger is expected to take about a year, and Denali members won't be affected as that process happens, the credit union said in a statement. Annie Zak, Anchorage Daily News, "Denali Federal Credit Union to merge with California credit union," 15 Mar. 2018 Credit-builder loans are available from some credit unions and Self Lender, an online company. Liz Weston, OregonLive.com, "Liz Weston: Do you need a trust if you have a will?," 18 Feb. 2018 Deputies found 37-year-old Jason Maas lying face down in his own blood on Sunday morning in front of a credit union in northwest Houston, according to a news release from the Harris County Sheriff's Office. Matthew Martinez, star-telegram, "He got 'pranked' by his girlfriend's husband — so he stabbed him to death, Texas cops say," 3 July 2018 Deputies found Maas on Sunday morning lying in a pool of blood in front of a northwest Harris County credit union. Samantha Ketterer, Houston Chronicle, "Fatal stabbing might have been over prank with stolen ID," 3 July 2018 What is your take on the solution offered by the credit union? Olivera Perkins, cleveland.com, "Do wage theft laws in Ohio harm or help workers?," 15 Apr. 2018

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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Last Updated

5 Oct 2018

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Time Traveler for credit union

The first known use of credit union was in 1843

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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

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