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Credit unions are unique creatures (well, a unique species) within the financial-services-firm universe. Credit unions are similar to banks in the products and services that they offer (although private banks tend to offer a deeper array).

However, unlike banks, which are run as private businesses seeking profits, credit unions operate as nonprofit entities and are technically owned by their members (customers). If they’re efficiently operated, the best credit unions offer their customers better terms on deposits, including checking and savings accounts (higher interest rates and lower fees) and some loans (lower rates and fees).

Don’t assume that credit unions necessarily or always offer better products and services than traditional banks, because they don’t. The profit motive of private businesses isn’t evil; quite to the contrary, the profit motive spurs businesses to keep getting better at and improving on what they do.

Credit unions have insurance coverage up to $250,000 per customer through the National Credit Union Administration (NCUA), similar to the FDIC protection that banks offer their customers. As when checking out a bank, be sure that any credit union you may deposit money into has NCUA insurance coverage.

The trick to getting access to a credit union is that by law, each individual credit union may offer its services only to a defined membership. Examples of the types of credit union memberships available include

 Alumni

 College and university

 Community

 Employer

 Place of worship

There can be some overlap between these groups. To access a credit union, you also may be able to use your family ties.

To find credit unions in your local area, visit the Credit Union National Association consumer’s website at www.asmarterchoice.org/.