A credit union is a group of people, connected by a 'common bond' based on the area they live or study in, the occupation they work in, or the employer they work for, who save together and lend to each other at a fair and reasonable rate of interest.

Credit unions exist only to serve members - not to profit from their needs. Surplus income generated is returned to the members by way of a dividend and/or is directed to improved or additional services for members. Members' savings are used to fund loans to other credit-worthy members of the credit union. So, the money in a credit union always remains in the local community or 'common bond' that the credit union serves.