Where Does My Credit Union Money Go?

Here’s what happens to the money in your credit union.

Member 1 allows the credit union to “borrow” money by depositing money in savings accounts (also referred to as purchasing shares).

The money is kept safe at the credit union through secure record-keeping and insurance.

The credit union provides a low-interest auto loan to Member 2 using the money shared by Member 1.

Member 3 learns through financial education programs the credit union made available through the money shared by Member 1 as well the interest that Member 2 pays on their auto loan.

Member 2 and Member 3 also “lend” money to the CU, which makes the low-interest home loan possible for Member 4.

All four members get convenient access to the CU’s online and mobile banking and ATM, which is paid for by the loans of Member 2 and Member 4.

As a not-for-profit cooperative, the profits are returned to credit union members–money right back into their pockets!