Whether you want to open a savings account or get a mortgage, most people think of traditional banks before other options. However, there are other institutions where you can put your money or get a loan. With this information, you should be able to choose one of the best credit unions in the country for opening an account or getting a loan.
What are Credit Unions?
Banks are for-profit financial institutions whose owners are usually large corporations or small groups of people. However, credit unions are financial co-operatives run by its members. People who work at certain companies, who affiliate with some religions, are in the military, or live in a particular area can join credit unions that accept people who live, work or worship with certain organizations.
For instance, if you are in the Navy or a veteran of the Navy, then you may be eligible to join Navy Federal Credit Union. Many states have credit unions with state employees as members, and some universities also have credit unions for current and former students, teachers, and others associated with the school.
Advantages of Credit Unions
If you are trying to decide between getting an account or loan from a bank or another financial institution, there are several reasons to consider joining a credit union.
Offer Better Interest Rates
Whether you want to save or borrow money, most credit unions offer better interest rates to their customers. The rates for saving money is usually higher than a bank’s, with some credit unions offering interests rates that are higher depending on how much is in the account.
For instance, someone with $10,000 in a savings account may receive more interest on it than someone with $1,500 in savings. Also, the interest rates on loans are usually lower than the banks because they are not trying to make a profit from their members.
Lower Fees than Banks
Many bank customers want to switch to another institution because of their frustration over bank fees. To make a profit, banks charge fees on taking money out at ATMs, for buying checks when you need more for an account, and they may charge a fee for dropping under a certain amount of money in your checking or savings account.
Credit unions usually don’t charge ATM fees if you use one they own, they may not charge monthly service fees on accounts, and they typically don’t charge transfer fees. Also, credit unions will often work with their members regarding overdraft fees and returning checks if they are having financial problems.
Better Chances Getting Loans
The requirements for getting a mortgage or personal loan with a bank can be difficult to meet as you need stellar credit. If there were financial problems in your past and you were late on some payments, you may not qualify for a loan with most major banks.
Fortunately, since they have fewer credit union members, loan officers can work with them individually to find the best loan product for their needs. Although some credit unions have an online loan process, applying in person allows you to discuss a not so stellar credit rating with a loan officer to help get approval for a mortgage, car or personal loan.
Guarantees on Accounts
Although credit unions do not fall under the jurisdiction of the Federal Deposit Insurance Corporation (FDIC), most of them are members of the National Credit Union Association (NCUA). If, for some reason a credit union fails, depositors have a guarantee that they can get back up to $250,000.
If you decide to join a credit union, check to see if they are members of this association, NCUA. If not and they go under, you would not receive any money back that you had in checking or savings accounts with them.
Members Get a Say
When you’re a member of a credit union, you get a say in their policies. When considering a policy change, the credit union will put it up for a vote, and all members get to vote on it. It is a democratic process in which each member gets one vote, so if all members approve of the policy, it will be implemented. If not, then it does not pass and will not move forward.
Top Seven Credit Unions in America
To join a credit union, you can become part of one in the area where you live, or you can go through an employer, church, university, union, homeowners’ association, or university if you have a connection with the organization. Through some research, we found seven of the best credit unions in America and gave each of them a rating.
How We Chose Our Ratings
While researching credit unions, we read their policies, interest rates, services to their members, and read what members wrote about them in testimonials and reviews. Using all the information available to us, we gave each a rating between one and five stars, with five being the best rating. By reading these reviews, you should be able to pick a credit union that best suits your needs.
Meritrust is a credit union with locations in some central counties in Kansas, including:
- Sedgwick
- Harvey
- Butler
- Sumner
- Cowley
- Riley
- Douglas
People who live, work and worship in the 17 countries in which they serve, current and retired employees of Boeing or Spirit AeroSystems, members and employees of the Boeing employee association and employees of Meritrust can join the credit union by opening and maintaining an account with at least 25 dollars.
The credit union offers:
- Checking
- Savings
- IRAs
- CDs
- Credit Cards
- Business Checking and Savings
- Business Insurance Services
- Merchant Services
- Business Loans
They also offer insurance services for mortgages, vehicles, renters and flood insurance. All accounts have the protection of the NCUA. Members can get the apps for mobile banking at the Google Play Store or on iTunes for iOS devices.
SAFE is a credit union for anyone who lives, works, or is a church member in the greater Sacramento, California area. This region covers individuals and business in the counties of:
- Sacramento
- Placer
- Yolo
- El Dorado
- San Joaquin
- Solano
- Contra Costa
- Yuba
- Sutter
- Butte
- Alameda
- Nevada
- Amador
They offer:
- Checking
- Savings
- CDs
- Vehicle loans
- Mortgages
- Credit and Debit Cards
- Merchant Services
They also offer several other accounts and services for both individuals and businesses, like mobile and online banking. There are about 15 SAFE branches and several ATMs scattered throughout the region. They are also members of the NCUA, so customers’ money has protection in case of a financial crisis.
Connexus Credit Union has over 300,000 members in the US that include employees and their families of several companies like:
- Cincinnati Bell
- Convergys
- Liberty Mutual Insurance
- Honeywell
- TSI, Inc.
Also, residents of Cincinnati, Minneapolis and the surrounding suburbs, and in and around Wausau, WI can also join the credit union. Connexus offers members financial services like:
- Checking
- Individual and Business Credit Cards
- Student Loans
- Mortgages
- Vehicle Loans
- Lines of Credit
- Investment Services
- Insurance Services
- Online Banking
Connexus also has apps for digital banking that customers can download from their website for iOS and Android devices. The credit union is also federally insured by the NCUA.
It makes sense that one of the largest employers in the US has a credit union. Those eligible to join General Electric Federal Credit Union are employees of General Electric in the Cincinnati area, along with employees of area hospitals, attendees of particular churches, and people who live, work, go to school or worship in certain counties in Ohio, Kentucky, and Indiana.
The list for those eligible to join is on the website’s main page. They only need to open and maintain an account with at least $5 in it. Member services include:
- Checking
- Savings
- IRAs
- CDs
- Credit Cards
- Home Loans
- Vehicle Loans
- Business Accounts
- Investment, Insurance and Retirement Accounts
- Online and Mobile Banking
Their website also includes an information center that keeps members up-to-date about goings-on with the credit union and helps them find local branches or fee-free ATMs. They are also members of the NCUA, so members’ accounts are federally insured.
People who are employees of the Massachusetts Institute of Technology (MIT) and other organizations in Cambridge are eligible to join this credit union. Contract employees of many area companies and the immediate family, siblings and grandchildren or grandparents of eligible members can join as well.
Students and Alumni of MIT can also join the MIT Federal Credit Union. All the employees mentioned above need to do is make a $5 deposit in some savings or checking account and students and alumni can apply to join the credit union for free.
Along with savings and checking, MITFCU offers:
- Mortgages
- Student Loans
- Credit Cards
- Vehicle Loans
- Personal Loans and Lines of Credit
They also have financial planning, retirement, and insurance services as well. This the link to their app for Android devices and Apple devices. MITFCU is a member of NCUA.
This credit union’s primary location is in Hauppauge, New York, but you don’t need to be a teacher to have an account at Teachers Federal Credit Union. Any person or business in Suffolk or Nassau counties on Long Island can open accounts with them.
They offer many of the same services of a bank to their personal and commercial customers, including:
- Checking
- Savings
- Certificates of Deposit (CDs)
- Individual Retirement Accounts (IRAs)
- Health Savings Accounts
- Credit and Debit cards
- Mortgages
- Home Equity and other lines of credit.
- Youth Savings
- Vehicle loans
- Student loans
- Business loans
They also have online and mobile banking for those who don’t live near their 30 branches. They are a member of the NCUA.
To become a member of Navy Federal Credit Union, you don’t need to be an active duty member or veteran of the Navy. You could also be an active duty member or veteran of the Marine Corps, Air Force, Army, or Coast Guard.
You can also be a civilian employee of the Department of Defense, another United States Government employee or contractor assigned to a DoD installation. DoD retirees and annuitants of military or DoD members are also eligible for membership.
Navy Federal Credit Union, NFCU, is a full-service institution providing its members with:
- Checking
- Savings
- Individual Retirement Accounts
- Mortgages
- Vehicle loans
- Personal loans
- Business loans
- Credit cards
- Student loans
- Online and Mobile Banking
This institution has grown from seven members in 1933 to over eight million members. It has 319 branches and owns 629 ATMs worldwide, but they also allow members access to 30,000 ATMs around the world as a part of a cooperative effort with other institutions.
They offer members free checking accounts with no minimum balances, free checks, free online banking, and some of them provide rebates on any ATM fees you had to pay during the month. Here are the links to their mobile banking apps for iPhone, Android, iPad, and Kindle devices. They are a member of the NCUA.
Buyer’s Guide to Credit Unions
Now that you’ve seen seven of the best credit unions in the US, you will have an idea of the services they offer their members and what makes people eligible to become a member of a credit union. If you want to join a credit union, you can search for one in your area by going to a credit union locator online.
Most credit unions offer the same financial services that banks do, and you may get additional benefits from a local credit union, such as discounts from businesses, for being a member. After finding a credit union in your area that you’re eligible to join, you may need to open an account and maintain a certain amount in it to keep your membership.
Often the opening deposits are nominal, such as $5 or $10, and you may find accounts that you can open for as low as $1. Weigh the advantages of belonging to a credit union versus a bank carefully and look for ones you’re eligible for in and around where you live or work.