How do credit unions generate revenue?

Credit unions generate revenue through various means. Primarily, they earn income from the interest on loans provided to their members. Additionally, they collect fees for services such as account maintenance, overdrafts, and ATM usage. Investments in securities and other financial instruments also contribute to their revenue. Unlike traditional banks, credit unions are member-owned and operate as non-profits, which means they often reinvest their earnings to offer better rates and services to their members. To understand how credit unions generate revenue, it's essential to look at their primary income sources. They primarily earn from the interest on loans given to members. Besides, they charge fees for various services, including account maintenance, overdrafts, and ATM usage. Investments in securities and other financial instruments also play a significant role in their revenue generation. Unlike traditional banks, credit unions are member-owned and operate on a non-profit basis, often reinvesting their earnings to provide better rates and services to their members.