The full form of CU in banking typically stands for Credit Union.
A credit union is a member-owned, not-for-profit financial cooperative. These institutions provide many of the same financial services as banks, such as savings accounts, loans, and credit cards. However, unlike banks, credit unions are owned and controlled by their members, meaning that the members who have accounts at the credit union are also its owners. This structure often results in lower fees, better interest rates on savings, and more personalized service compared to traditional banks.
Key Characteristics of Credit Unions:
- Member-Owned: Credit unions are owned and operated by their members.
- Not-for-Profit: Any profits earned by a credit union are returned to the members in the form of lower fees, higher savings rates, and improved services.
- Focus on Community: Credit unions often have a strong focus on serving their local communities and supporting their members' financial well-being.
- Democratic Control: Members have a say in how the credit union is run, typically through electing a board of directors from the membership.
Services Offered by Credit Unions:
Credit unions typically offer a wide range of financial services, including:
- Savings Accounts
- Checking Accounts
- Loans (auto, personal, mortgage)
- Credit Cards
- Financial Education
- Online and Mobile Banking
In summary, when you see "CU" in the context of banking, it almost always refers to a Credit Union, a financial institution owned and operated by its members.
