Credit Union
Quick Definition
A member-owned cooperative financial institution offering banking services.
Full Explanation
Credit unions are member-owned cooperative financial institutions that provide similar services to banks but are governed by their members rather than shareholders. In Canada, credit unions are provincially regulated and include major institutions like Desjardins (QC), Vancity (BC), and First West Credit Union (BC). Because profits benefit members, credit unions often offer lower loan rates, higher savings rates, and lower fees than chartered banks. Provincial deposit insurance corporations protect member deposits. Credit unions are an excellent option for Canadians seeking competitive rates and personalized service.
Related Terms
CDIC (Canada Deposit Insurance Corporation)
Federal insurance protecting bank deposits up to $100,000 per depositor category.
High-Interest Savings Account (HISA)
A savings account offering above-average interest rates, often at online banks.
Mortgage
A secured loan used to purchase real estate, with the property as collateral.
Personal Loan
An unsecured or secured loan for personal use, repaid in fixed monthly installments.
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