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A '''credit union''' is a cooperative financial institution, operated similar to a traditional bank.  They operate on a "not-for-profit" basis (and it is common for the credit union, at the end of a successful year, to declare a special "dividend", similar to an additional interest payment, on deposits).

A '''credit union''' is a cooperative financial institution, operated similarly to a traditional bank.  They operate on a "not-for-profit" basis (and it is common for the credit union, at the end of a successful year, to declare a special "dividend", similar to an additional interest payment, on deposits).

Unlike banks, which are owned either as publicly-traded companies or as private investments, credit unions are owned its members, and the members elect the major officers of the credit union.

Unlike banks, which are owned either as publicly-traded companies or as private investments, credit unions are owned its members, and the members elect the major officers of the credit union.

Credit unions operate worldwide.

Credit unions operate worldwide.

In the United States credit unions may be governed at the Federal level or at the state level (except Wyoming does not govern credit unions).  Deposits are guaranteed (in the same amount as banks) by the National Credit Union Administration or by American Share Insurance (a private company).

In the United States, credit unions may be governed at the Federal level or at the state level (except Wyoming does not govern credit unions).  Deposits are guaranteed (in the same amount as banks) by the National Credit Union Administration or by American Share Insurance (a private company).

Compared to traditional banks, credit unions had a much lower failure rate during the Great Recession, and typically have a higher rate of customer satisfaction.

Compared to traditional banks, credit unions had a much lower failure rate during the Great Recession, and typically have a higher rate of customer satisfaction.

Some credit unions are extremely large: two very large ones (serving active and former military and civilian Department of Defense personnel) are '''Navy Federal Credit Union''' (the largest in the United States) and '''Pentagon Federal Credit Union''' (commonly known as '''PenFed''', the third largest).  '''San Diego County Credit Union''' is large enough to sponsor a holiday college football game, while '''Texas Dow Employees Credit Union''' holds naming rights to the University of Houston's football stadium.

Some credit unions are extremely large: two very large ones (serving active and former military and civilian Department of Defense personnel) are Navy Federal Credit Union (the largest in the United States) and Pentagon Federal Credit Union (commonly known as "PenFed," the third largest).  San Diego County Credit Union is large enough to sponsor a holiday college football game, while Texas Dow Employees Credit Union holds naming rights to the University of Houston's football stadium.

[[Category:Finance]]

[[Category:Finance]]