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About Credit Unions


what is a credit union?

A credit union is a not-for-profit business. That means after expenses are paid and reserves are set aside, surplus earnings are returned to the members in the forms of higher dividends, lower loan rates, and free or low-cost services. Credit unions are run by a volunteer board of directors.

Credit unions have members, not customers. Each person who deposits money into a credit union inherently becomes a member of that credit union.


what does it mean to be federally insured?

A federally chartered credit union, like Direct Federal, is 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 shares ideas, information, and resources. This network is also comprised of state credit union leagues, a national trade association (CUNA), and a worldwide credit union organization (WOCCU).


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