In deposit terminology, the term Credit Union refers to a non profit financial institution owned and operated by its members. A Credit Union is typically run as a cooperative and offers a number of banking services such as deposit account and loans.
For example, a Credit Union usually consists of the members of a large group of people with an important element in common. This group might consist of employees of a large company, members of a religious organization or workers from a labor union. Once a person makes a deposit into the Credit Union, they then become members and part owners in the co-op. Credit Unions offer many of the same services that commercial banks and other financial institutions offer. In many cases they also pay higher interest rates on deposits, while offering loans at a lower interest rate than many commercial banks.