About Direct

What is a Credit Union?

Credit unions are not-for-profit. This means that after expenses are paid and reserves are set aside, surplus earnings are returned to members in the forms of higher dividends, lower loan rates and free or low-cost services.

Credit unions have members, not customers.  Each person who deposits money in a credit union becomes a member of the credit union. Credit unions are run by a volunteer board of directors.

Federally chartered credit unions, like Direct Federal, are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is managed by the National Credit Union Administration, an agency of the federal government. As a federal deposit insurance fund, the NCUSIF is backed by the full faith and credit of the U.S. government. The NCUSIF is the only deposit insurance fund that operates on a pay-as-you-go system, which prevents the accumulation of annual losses. The NCUSIF has never had to use taxpayers' money.

Credit unions are part of a worldwide support network that includes credit unions, state credit union leagues, a national trade association (CUNA) and a worldwide credit union organization (WOCCU). They share ideas, information, and resources.