Credit unions are financial cooperatives that provide traditional banking services to their members.
Credit unions have fewer options than traditional banks, but they offer customers access to better rates and more ATMs because they are not traded on an exchange and they only need to earn enough money to continue with day-to-day operations.
However, credit unions have significantly fewer offices than most banks, which can be a disadvantage for customers who like personal service.
Credit unions are exempt from paying corporate income tax on their income.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.
A bank run occurs when large groups of depositors withdraw their money from banks at the same time, out of fear that the institution will become insolvent.