A credit union is a member-owned, not-for-profit financial cooperative formed to serve its members by providing affordable and safe financial services such as savings accounts, loans, and other banking products. Members of a credit union share a common bond, such as living in the same area, working for the same employer, or belonging to the same organization. Key characteristics of a credit union include:

• Ownership and control by its members, who each have an equal vote regardless of the amount they save or invest.
• Operation for the benefit of members rather than to make a profit. Any surplus income is returned to members in the form of dividends, lower fees, or better loan rates.
• Funds from members' savings are pooled to provide loans to other members.
• A democratic structure where members elect a volunteer board of directors to oversee the credit union.
• Membership often extends to families of members and can be based on a common community, workplace, or association.

Credit unions aim to help members succeed financially by offering competitive rates, better customer service, and financial education. Deposits are usually insured up to a certain limit, similar to banks. Overall, credit unions operate to meet the financial needs of their members while fostering community and mutual assistance, differing from traditional banks which operate as profit-driven corporations. In summary, a credit union is a cooperative financial institution owned and democratically controlled by its members, providing financial services with the goal of serving members rather than making profit.