A more thorough explanation:

A credit union is a type of financial institution that is owned and controlled by its members. It provides loans and savings services to its members. Unlike banks, credit unions are controlled by the account holders (members) of the union, and the union may have standards for who can join the credit union. Members who meet certain requirements can vote on the leadership of the union.

Credit unions are non-profit organizations, which means they do not aim to make a profit. Instead, they aim to provide services to their members at a lower cost than traditional banks. Because credit unions are non-profits and limit surplus services, members receive lower interest rates for loans and higher returns on savings accounts than at a regular banking institution. Accounts at credit unions receive the same FDIC insurance coverage as qualifying banks do.

For example, let's say you want to take out a loan to buy a car. You could go to a bank or a credit union. If you go to a credit union, you will likely get a lower interest rate on your loan than you would at a bank. This is because credit unions are non-profit organizations and aim to provide services to their members at a lower cost than traditional banks.

Another example is if you want to open a savings account. If you open a savings account at a credit union, you will likely earn a higher interest rate on your savings than you would at a bank. This is because credit unions are non-profit organizations and aim to provide services to their members at a lower cost than traditional banks.

These examples illustrate how credit unions work to benefit their members by providing lower interest rates on loans and higher returns on savings accounts.