Forms & FAQs

What is the purpose of a credit union?

The primary purpose in furthering their goal of service is to encourage members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.

Are savings deposits insured?

Yes, the amount on deposit is fully insured up to the legal limitations. The first $100,000 is insured by the National Credit Union Share Insurance Fund (NCUSIF). The basic insured amount for each member is $100,000. In addition to being federally insured, any amount on deposit exceeding $100,000 is insured in full up to the legal limitations (single accounts to $600,000 plus interest and joint accounts to $1,200,000 plus interest) by the Massachusetts Share Insurance Corporation (MSIC). IRA deposits are insured separately under NCUSIF up to $250,000. Any IRA exceeding $250,000 is insured for an unlimited amount by the MSIC. NCUSIF is administered by the National Credit Union Administration (NCUA)

Who can join a credit union?

A credit union exists to serve a specific group of people, such as a group of employees or the members of a professional or religious group. This is called a "field of membership." The field of membership may include where they live, where they work, or their membership in a social or economic group.

What’s a Credit Union?

A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.