A credit union is a member-owned financial institution organized to encourage savings and to provide loans with competitively low interest rates to members. South Dakota law does not provide for the establishment of a state-chartered credit union. To organize a credit union in the state, it is necessary to obtain a federal charter.
Credit unions have evolved into sophisticated financial institutions offering members a variety of services. An organization seeking to set up a credit union needs expert assistance. It is often easier to join an existing credit union than to start a new one.