Based on the 19th Century agricultural co-operatives of Europe, credit unions began in 1935, and are based on the idea of the pooling of resources of those with a common purpose. They are financial organizations, offering similar services to banks, such as savings and checking accounts and loans.

They are owned and governed by the members on a one-member one-vote principle. The original idea was for a non-profit organization but there are now for-profit examples as well. To borrow money from a credit union and to deposit money with a credit union requires membership.

Credit unions can be joined by those who share some sort common bond with the members of the union as defined by the particular union themselves. This may be a place of work or a church, for example. People related to members may also be eligible.

Credit unions can be beneficial in the returns that they offer both in terms of interest payments and quarterly dividends and also in terms of offering lower interest rates on borrowing than banks.

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