Different Types of Credit Unions

Credit union works for the member’s profit. Credit union is a member owned financial service which helps its members in saving their money. It offers various financial services to its members. There are various benefits of becoming a member of credit union as compare to national and other local banks.

Types of Credit Unions

There are mainly four types of available credit union. It is important to know the difference between them so as to find the best credit union.

State Chartered Credit Union

State chartered credit union is operated in the respective states and it is managed by the private members or volunteers. State chartered credit unions provide many types of account services like members accounts, including share draft accounts, share certificates, share accounts and money market accounts. State employee credit union is an example of State chartered credit unions.

Federal Credit Unions

Federal credit unions are not for profit credit union, also preferred and regulated by the federal government under the Federal Credit Union Act. Federal credit unions are national credit unions with several limits for its membership. It requires a member to be at least 18 years old. Its members manage loans, their investments and credit. Some Federal credit unions can be joined online which only requires the member to be a citizen of U.S with its permanent address.

Corporate Credit Unions

Corporate credit unions provide all types of financial services and financial marketing solutions to their individual consumers. Corporate credit union is also known as Central credit union which provides investment facilities and loans to its members. Corporate credit unions offer a range of payment solutions, international services, electronic payment of bills, reporting services, investment advice and security safekeeping program. Corporate credit unions are administered and chartered by National Credit Union Administration (NCUA).  

Natural-person or Employer Credit Unions

Natural-person credit unions provide financial services to individual people, specific company, professions or industry as like police officers, firemen, teachers, government workers and other similar groups across the country.




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