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What is a Credit Union?

A credit union is a group of people who save together and lend to each other at a fair and reasonable rate of interest. Credit unions offer members the chance to have control over their own finances by making their own savings work for them. Regular savings form a common pool of money, which in turn provides many benefits for members.

A credit union is an organisation of people - for people. It exists only to serve its members - not to profit from their needs. Credit unions are non-sectarian and non-political, and continue our tradition of co-operative self help.

In Ireland over 3.0 million members have recognised the value of credit unions and have savings approaching €12.6 billion. There are over 9,200 active volunteers involved in the movement, and over 3,500 people are employed.

It has been shown throughout history that by working together people can achieve far more through co-operation than by individual effort. The success of the credit union movements worldwide is a clear illustration of this. Credit unions have served their members well in Ireland, and as long as there are active members, they will continue to do so.

 
How is a Credit Union different from Banks and other financial institutions?
 
Credit Union Banks
Credit Unions are true co-operatives, fully owned by the members. Banks are public companies owned by shareholders.
Credit Unions exist only to assist its members. Banks exist to make profits for its shareholders.
Credit Union’s surplus is returned to its members who are its owners. Bank profits are returned to its shareholders (the majority of which are generally institutional investors) and not exclusively to its customers.
Members appoint the Board of Directors. The Board and the largest shareholders of the bank appoint directors.
Credit Unions only deal with members who must live or work within a certain area. Banks deal with the general public.
Board members provide their services voluntarily. Board members are paid for their services.
Each member has an equal say in the running of their Credit Union regardless of the balance of their account. Shareholders and more particularly, institutional investors, effectively control a bank.
Members pay €1 fee to join their credit union and do not pay transaction or other fees. Banks charge a large range of transaction and other fees.
Credit Union decisions are not motivated by profits or made at the expence of the community which they serve Bank decisions are purely profit motivated with little regard for the community.