A financial cooperative provides banking services exclusively to a specific group: current and retired employees of the postal service, along with their families. This type of institution typically offers a full range of services, including checking and savings accounts, loans, and mortgages, often with more favorable rates and terms than commercial banks. Members are both owners and customers, sharing in the profits and directing the credit union’s operations through a democratically elected board.
These member-owned institutions offer a significant advantage by returning profits to members in the form of better interest rates and lower fees. Historically, such organizations arose from the need to provide accessible financial services to specific communities often underserved by traditional banking. This fostered a sense of shared ownership and responsibility, leading to strong community bonds and personalized service. This model empowers members financially while fostering a culture of mutual support.
