What Is A Credit Union?

The concept of a financial cooperative or Credit Union is quite simple. Credit Unions are owned and operated by a group of people (or members) who pool their savings and lend to each other. As a member-owned financial cooperative, Premier Federal Credit Union is owned by the membership.  As an owner you have a voice...you're the boss!
Unlike being a customer at another financial institution, Credit Unions return their profits to the membership in the form of consistently better rates, lower fees and by offering products and services that fit members’ needs. After all, unlike a bank, we have no outside shareholders...just member-owners like you. 

Credit unions are the ultimate democratic financial institution—every member has the option to vote for the credit union’s board of directors. The board members are unpaid volunteers, and therefore have the best interest of the membership at heart.  And our paid professional staff reports to the member-elected board of directors, ensuring the best service and options for your financial future.

How Does a Credit Union Work? How is a Credit Union Different From a Bank?


Credit Unions

Banks /  Savings & Loans


Democratic, Member-Owned Cooperative. "Not-for-profit but for service." Business orientated to generate profit for outside shareholders.


Unpaid, volunteer Board of Directors elected by the members. Paid Board of Directors elected by the shareholders.


Consumer and Business services - Savings, Checking, Loans & Credit Cards. Financial Counseling. Consumer and Commercial. Savings, Checking, Loans. Corporate Trust services.

Rates & Fees

Typically higher dividends on savings, lower loan interest rates and fewer fees. Charge more and higher fees than credit unions.


Deposits in all credit unions are insured up to $250,000 by the National CU Share Insurance Fund. Nearly all accounts are insured up to $250,000 by a government agency.
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