Corporate credit union

Okay, so let’s pretend you have a piggy bank that you put all your allowance money into. You want your money to be safe and grow over time.

A corporate credit union is like a giant piggy bank for other piggy banks (or regular banks). It’s a special type of credit union that provides financial services to smaller credit unions, which are like the piggy banks. These smaller credit unions pool their money together in the corporate credit union to keep it safe and grow over time.

So why would a smaller credit union want to use a corporate credit union instead of just keeping all their money in their own piggy bank? Well, corporate credit unions can offer more services, like loans and investments, to help the smaller credit unions make more money. Plus, if something bad happens to one of the smaller credit unions, they still have their money in the corporate credit union to fall back on.

Think of it like a family. If someone in the family needs help, they can turn to their parents or other family members for support. The corporate credit union is like the parents (or big siblings) of the smaller credit unions, helping them out when they need it and making sure their money is safe and secure.