Which of the following is a feature of a credit union?

A credit union is a member-owned financial cooperative that provides various financial services, including savings accounts and loans, primarily to its members. One of the key features of credit unions is that they are protected by the Financial Services Compensation Scheme (FSCS) in the UK. This means that members' deposits are insured up to £85,000 in the event that the credit union becomes insolvent. This protection gives members confidence in their savings and encourages a sense of community and mutual support among credit union members.

In contrast to the characteristics of credit unions, other options highlight different aspects of financial organizations that do not apply to credit unions. For example, credit unions are not primarily run for profit; rather, they operate on a not-for-profit basis, focusing on serving their members rather than generating profit for shareholders. Similarly, credit unions typically offer competitive interest rates rather than high ones for borrowers, as their objective is to provide affordable access to loans rather than maximize returns. Finally, credit unions are owned and governed by their members, not by shareholders, which differentiates them from traditional banks and other for-profit financial institutions.