The Basics of Credit Unions
A credit union is a member-owned, not-for-profit financial cooperative. Unlike banks, which are owned by shareholders and operated to generate profit, credit unions exist solely to serve their members. Every account holder is also a part-owner with an equal vote in electing the board of directors, regardless of how much money they have on deposit.
How Credit Unions Make Money
Credit unions earn income the same way banks do — by charging interest on loans and fees for certain services. The key difference is what happens to that income. Because credit unions are not-for-profit, they return earnings to members in the form of lower loan rates, higher savings yields, fewer fees, and improved services rather than distributing profits to outside shareholders.
Who Regulates Credit Unions?
The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions and administers the National Credit Union Share Insurance Fund (NCUSIF), which insures member deposits up to $250,000 per member per account category — the same coverage provided by FDIC for banks. State-chartered credit unions are overseen by their state's financial regulatory agency and may also carry federal share insurance through the NCUA.
Types of Credit Unions
- Federal credit unions — chartered by the NCUA, their names must include "Federal Credit Union." They operate under the Federal Credit Union Act.
- State-chartered credit unions — chartered under state law. They may be insured by the NCUA or, in some states, by a state-authorized private insurer.
- Community credit unions — open to anyone who lives, works, or worships in a defined geographic area.
- Occupational credit unions — serve employees of a specific company or industry group.
- Associational credit unions — serve members of a specific organization, church, or association.
How Big Is the Credit Union Industry?
As of Q4 2025, there are approximately 4,374 federally insured credit unions in the United States, collectively holding more than $2.3 trillion in total assets and serving over 130 million members. The industry ranges from tiny credit unions with a few million dollars in assets to giants like Navy Federal Credit Union, which exceeds $175 billion in assets and is the largest credit union in the world.
The Bottom Line
Credit unions offer a compelling alternative to traditional banks, especially for consumers who value lower borrowing costs, better savings rates, and a genuine sense of community ownership. To find a credit union you're eligible to join, use our search tool to browse by name, city, or zip code.
Frequently Asked Questions
Yes. Deposits at federally insured credit unions are protected by the NCUA's Share Insurance Fund up to $250,000 per member per account category — the same coverage as FDIC insurance at banks. No member has ever lost money in an NCUA-insured account.
You must meet the credit union's 'field of membership' requirements, which define who is eligible to join. Many credit unions use a community charter and are open to anyone who lives or works in a specific geographic area. Some have very broad eligibility — for example, certain credit unions allow any US citizen to join by making a small donation to an affiliated nonprofit.
The fundamental difference is ownership structure. Banks are owned by shareholders and operated for profit. Credit unions are owned by their members and operated as not-for-profits. This typically results in credit unions offering lower loan rates, higher savings rates, and fewer fees.
Use our search tool on the home page to search by city, zip code, or name. You can also filter by state to see all credit unions in your area.
Most credit unions offer checking accounts, savings accounts, certificates of deposit (called share certificates), auto loans, mortgages, credit cards, and personal loans. Larger credit unions may also offer business accounts, investment services, and online banking comparable to major banks.
Find Credit Unions Near You
Search our directory of 4,374 federally insured credit unions by name, city, or state.