What is the meaning of Credit union?

Credit unions are financial cooperatives set up by employee and community associations, labor unions, church groups, and other organizations. They are created to provide affordable financial services to members of the sponsoring organization, or, in some cases, to rural or economically disadvantaged areas, where commercial banks may be scarce or prohibitively expensive. Because they are not-for-profit, credit unions tend to charge lower fees and lower interest rates on loans than commercial banks while paying higher interest rates on savings and investment accounts. The services offered at large credit unions can be as comprehensive as those at large banks. At smaller credit unions, however, services and hours may be more limited, and at a few deposits may not be insured. Credit unions enjoy a reputation for superior customer service, which may be part of the reason why more than 76, 000, 000 people across the nation are members.