Krediitühistused

Krediitühistused, also known as credit unions, are member-owned financial cooperatives. Unlike traditional banks that are owned by shareholders, credit unions are owned and controlled by their members, who are also their customers. This ownership structure means that any profits generated by a credit union are typically returned to members in the form of lower loan rates, higher savings rates, and reduced fees.

The primary purpose of a credit union is to serve its members, not to maximize profits for external investors. Membership in a credit union is generally limited to individuals who share a common bond, such as belonging to the same employer, community, or organization. This common bond requirement helps to foster a sense of shared interest and purpose among members.

Credit unions offer a range of financial services similar to those provided by banks, including savings accounts, checking accounts, loans, mortgages, and credit cards. They are regulated and insured, typically by a government agency, ensuring the safety of members' deposits up to a certain limit. The philosophy behind credit unions emphasizes providing affordable financial services and promoting the financial well-being of their members. They often play a significant role in local communities by reinvesting profits back into the community and offering personalized customer service.