How To Select The Best Credit Union
When it comes to managing your finances, finding the proper financial institution is critical to ensuring you get the greatest deal and one that suits your needs.
Credit unions are gaining popularity as an alternative to for-profit banks. According to figures from the National Credit Union Administration, there will be 135.3 million credit union members by the end of 2022, up from 93.8 million a decade ago.
Whether you’re thinking about joining the millions of people who own credit unions or switching to a new one, here are some things to consider while deciding on the ideal one.
-
Membership requirements
-
Range of products and services
-
Fees and account requirements
-
Dividends
- Customer service and accessibility
1. Membership requirements
When it comes to managing your finances, finding the proper financial institution is critical to ensuring you get the greatest deal and one that suits your needs.
Credit unions are gaining popularity as an alternative to for-profit banks. According to figures from the National Credit Union Administration, there will be 135.3 million credit union members by the end of 2022, up from 93.8 million a decade ago.
Whether you’re thinking about joining the millions of people who own credit unions or switching to a new one, here are some things to consider while deciding on the ideal one.
2. Range of products and services
Credit unions typically offer traditional products such as checking and savings accounts, but many also offer loans, credit cards, mortgages, and investment choices. Furthermore, some may offer a wider selection of account options, such as share certificate terms.
Think about your financial goals and needs. If you foresee needing a loan or mortgage in the future, make sure the credit union offers reasonable rates and acceptable conditions on these products. Similarly, if you want to open a share certificate, be sure the credit union has a certificate term that fits your schedule.
3. Fees and account requirements
Many credit unions charge cheaper fees than typical banks because profits are paid back to members. However, it is still vital to thoroughly analyze pricing schedules.
Common fees to consider are:
- Monthly maintenance fees
- ATM fees (especially if you frequently use ATMs outside the credit union’s network)
- Overdraft fees
- Money transfer fees
You might also consider minimum balance requirements. Some credit unions may require a minimum deposit to start an account or levy penalties, such as a monthly fee if the balance falls below a specific amount. Often, a minimum amount is required to continue membership with the credit union.
4. Dividends
All credit union members are shareholders, and profits are dispersed to members in the form of dividends, or interest rate payments. That implies credit unions can provide competitive savings rates.
It’s critical to compare interest rates on savings accounts, share certificates, and interest-bearing checking accounts. This allows you to evaluate options and maximize the return on your savings.
5. Customer service and accessibility
Credit unions are known for emphasizing individual service and developing relationships with their members. Consider researching credit unions’ customer service hours and reviews.
In terms of accessibility, you should evaluate branch locations and banking choices. If you prefer to do most of your banking transactions online or via mobile apps, ensure sure your credit union provides extensive digital banking alternatives such as online bill paying, mobile check deposit, and easy account management.
Best credit unions
- Best overall: Alliant Credit Union
- Runner-up: PenFed Credit Union
- Best for high APY: Consumers Credit Union (CCU)
- Best for low-interest credit cards: First Tech Federal Credit Union
- Best for military members: Navy Federal Credit Union
1. Alliant Credit Union High-Rate Checking
Alliant Credit Union takes the top place for a variety of reasons: The credit union provides one of the greatest no-fee checking accounts, an industry-leading cash-back credit card, and one of the best mobile banking apps. Other financial products include personal, vehicle, and house loans, savings accounts, CDs, IRAs, and others.
-
Monthly maintenance fee:
$0
-
Minimum deposit to open
$25 when opening online or over the phone
-
Minimum balance
None
-
Annual Percentage Yield (APY)
0.25% with paperless and recurring monthly electronic deposit
-
Free ATM network
80,000+ Alliant network ATMs
-
ATM fee reimbursement
Up to $20 per month
-
Overdraft fee
$0
-
Mobile check deposit
Yes
2. PenFed Platinum Rewards Visa Signature® Card
PenFed Credit Union is a close second on our list since it provides its members with a distinctive rewards credit card, as well as convenient ATM access for depositors. PenFed also provides a variety of credit cards, bank and savings accounts, mortgages, vehicles, and personal, and student loans, among other services.
-
Rewards
5 points for gas purchases at the pump and electrical car charging stations, 3 points for grocery purchases, and 1 point for all other purchases.
-
Welcome bonus
15,000 points when you spend $1,500 in the first 3 months from account opening
-
Annual fee
$0
-
Intro APR
0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*
-
Regular APR
17.99% variable on purchases; 17.99% non-variable on balance transfers
-
Balance transfer fee
3%
-
Foreign transaction fee
None
3. Consumers Credit Union Rewards Checking
Consumers Credit Union (CCU) stands out as one of the greatest credit unions since it offers one of the highest-yielding checking accounts. CCU also provides its members with a variety of bank and savings accounts, mortgages, personal and auto loans, credit cards, and more.
-
Annual Percentage Yield (APY)
Up to 5.00% APY on balances up to $10,000 (0.20% APY on up to $25,000 and 0.10% APY thereafter); 0.01% APY if don’t meet requirements
-
Minimum deposit to open
$5
-
Minimum balance
None
-
Monthly fee
None
-
Free ATM network
Yes, over 30,000 ATMs
-
ATM fee reimbursement
Unlimited reimbursement for any ATM fees
-
Overdraft fee
Fees may apply; overdraft protection is available
-
Mobile check deposit
Yes
4. Choice Rewards World Mastercard®
First Tech Federal Credit Union has some of the best low-interest credit cards available for when you know you won’t be able to pay off your entire bill at the end of the month. The credit union also provides a variety of checking and savings accounts, IRAs, mortgages, personal, auto, and student refinance loans, among other services.
-
Rewards
Earn 2X points on groceries, gas, electronics, medical, household goods, and telecommunications, and 1X points on all other purchases
-
Welcome bonus
Earn 20,000 points when you spend $3,000 in the first 60 days from account opening
-
Annual fee
$0
-
Intro APR
None
-
Regular APR
13.50% – 18.00% variable
-
Balance transfer fee
None
-
Foreign transaction fee
None
-
Credit needed
N/A
5. Visa Signature® Flagship Rewards Credit Card from Navy Federal Credit Union
Navy Federal Credit Union provides its military members with a top travel rewards credit card. The credit union also offers a variety of additional credit cards, bank and savings accounts, personal, auto, and student loans, mortgages, and more.
-
Rewards
Earn 3X points on travel and 2X points on everything else. Receive statement credits (up to $100) for Global Entry or TSA PreCheck
-
Welcome bonus
Earn 30,000 bonus points when you spend $3,000 within 90 days of opening your account. You’ll also get a free year of Amazon Prime (a $139 value)
-
Annual fee
$0 the first year; $49 thereafter
-
Intro APR
None
-
Regular APR
15.24% to 18.00% variable
-
Balance transfer fee
None
-
Foreign transaction fee
None
-
Credit needed
N/A
How to join Alliant Credit Union
The simplest method to become an Alliant Credit Union member is to support Alliant’s partner charity, Foster Care to Success (FC2S). When you apply to join the credit union, Alliant will even reimburse your one-time $5 membership cost to FC2S.
Membership is also open for the following:
- Alliant links with employee and retiree organizations, as well as family members of current members.
- Individuals who reside or work in a qualifying community in Illinois
Locations
Alliant is an online-only credit union headquartered in Chicago, Illinois. While Alliant has no physical facilities, it provides users with access to a network of over 80,000 surcharge-free ATMs.
Notable perks
Account holders with Alliant Credit Union High-Rate Checking can get reimbursed for up to $20 per month in out-of-network ATM costs, saving them up to $240 per year. Otherwise, you’ll have access to over 80,000 fee-free ATMs in the network. Cardholders of the no-annual-fee Alliant Cashback Visa® Signature Credit Card can earn up to 2.5% cash back on their first $10,000 in qualifying eligible purchases (1.5% for transactions above $10,000).
The Alliant app enables customers to deposit checks, make payments, manage accounts, and set financial goals while on the go.
How to join PenFed Credit Union
To become a member of PenFed Credit Union, simply open a PenFed savings/share account with a $5 deposit and maintain a $5 account balance.
Locations
PenFed is headquartered in McLean, Virginia, and operates 48 branches in 15 states.
Notable perks
The PenFed Platinum Rewards Visa Signature® Card, which has no annual fee, ranks first on CNBC Select’s list of the best gas rewards credit cards because it offers the greatest rewards rate at gas stations, with 5X points for dollar spent on petrol purchases at the pump. Drivers of electric vehicles receive the same return at EV charging stations. Cardholders can now earn unlimited 3X points on grocery purchases.
How to join CCU
Applying for a CCU membership involves two steps: First, pay a $5 non-refundable charge to CCU’s sponsor, the Consumers Cooperative Association. Second, deposit and maintain a minimum of $5 in your Membership Share/Savings Account.
Locations
CCU is headquartered in Gurnee, Illinois, and has 11 branches throughout the state. CCU is also a member of the Credit Union Service Centers network, which offers access to over 5,000 shared branches and 30,000 co-op ATMs, predominantly in the United States.
Notable perks
With the Consumers Credit Union Rewards Checking Account, you can earn 5.00% APY on balances up to $10,000 if you match the following criteria:
- Receive bank statements electronically.
- Make a minimum of 12 debit card purchases per month
- Set up direct deposits, mobile check deposits, or ACH credits worth $500 or more monthly.
- Spend $1,000 or more on CCU Visa Credit Card purchases each month (no minimum number of transactions).
This checking account also has no monthly maintenance costs, no minimum balance requirements, unlimited reimbursement for all ATM fees, access to over 30,000 ATMs and over 5,000 shared branches, and the option to receive payment two days early via early direct deposit.
How to join First Tech Federal Credit Union
The simplest way to become a member of First Tech Federal Credit Union is to join either the Computer History Museum (CHM) or the Financial Fitness Association. First Tech pays the first year’s membership fee for the CHM or FFA, and you can terminate your membership after opening an account without affecting your First Tech membership.
Membership is also open for the following:
- Employees (or family members of employees) of a partner enterprise or for the State of Oregon.
- People who live or work in Lane County, Oregon
- Families or household members of an active First Tech member
Locations
First Tech is headquartered in San Jose, California, and operates 39 offices in eight states and Puerto Rico. First Tech, like CCU, is a member of the Credit Union Service Centers network, which offers access to over 5,000 shared branches and 30,000 co-op ATMs, predominantly in the United States.
Notable perks
The Platinum Mastercard® from First Tech Federal Credit Union has a relatively low regular APR (12.24% to 18.00% variable) when compared to other credit cards.
The Choice Rewards World Mastercard® from First Tech Federal Credit Union is another excellent low-interest credit card for those who value rewards. The no-annual-fee card has a reasonable APR (13.50% to 18.00% variable). Cardholders will earn 2X points on gas, food, household goods, and other purchases, and there is presently a welcome incentive in place of 20,000 bonus points for spending at least $3,000 within the first 60 days.
How to join Navy Federal Credit Union
A military affiliation is required to join the Navy Federal Credit Union.
Eligibility alternatives include:
- Active duty members from the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard, and Space Force
- Members of the Delayed Entry Program (DEP) include DoD officer candidates and ROTC participants.
Veteran, retiree, and annuitant - DoD personnel include reservists, civilians, retirees, and annuitants, as well as US government employees and contractors working on DoD installations.
- Family and household members of the groups mentioned above
Locations
Navy Federal has 341 branches in 31 states and is headquartered in Vienna, Virginia.
Notable perks
The Visa Signature® Flagship Rewards Credit Card allows users to earn 3X points for every $1 spent on travel and 2X points on everything else. The card also provides statement credits (up to $100) for Global Entry or TSA PreCheck®, no foreign transaction fees, a free year of Amazon Prime, a one-time annual fee waiver (after that, $49 per year), and a welcome bonus: earn 30,000 bonus points — a $300 value — when you spend $3,000 within 90 days of account opening.
Credit unions vs. banks
Here are some of the benefits of using a credit union rather than a bank, as well as what credit union members may be losing out on that a bank can provide.
| Credit unions | Banks |
|---|---|
| Member ownership: Credit unions are member-owned, which means you have a say in decision-making and can participate in governance. | Large branch and ATM networks: National banks have far larger branch and ATM networks than credit unions do. |
| Personalized service: Members often have tight ties with their credit unions, and they can obtain individualized advice and solutions that are tailored to their specific circumstances | o and membership requirements: Though you may need to make a minimum deposit to open a bank account, banks do not have set requirements for clients to join. |
| Competitive rates: Many credit unions may pay bigger dividends than regular banks. | Technology and innovation: While credit unions are making technical advances, they may not provide the same level of digital banking innovation as larger institutions. |
| Community focus: Credit unions are frequently deeply embedded in their communities, sponsoring local activities and providing assistance through scholarships and programs. |
Is it better to join a bank or a credit union?
When it comes to banks versus credit unions, one is not “better” than the other; rather, it’s more of a personal preference based on what you’re looking for and your specific banking needs — credit unions may occasionally offer lower rates and fees on certain products than a large, national bank, but they have less access. Both financial institutions offer goods such as checking and savings accounts, mortgages, auto and personal loans, and consulting services.
Is there a downside to joining a credit union?
The major disadvantage of credit unions is that you must become a member to open an account, and eligibility does not necessarily apply to everyone. To qualify, you may need to live in a specific state, work for a specific corporation, or be affiliated with certain groups.
What are the three largest credit unions?
According to Deposit Accounts, the three largest credit unions today in terms of assets are the Navy Federal Credit Union, State Employees’ Credit Union, and PenFed Credit Union.
What’s the easiest credit union to get into?
The easiest credit union to join is one that accepts anyone who donates a nominal fee to a cooperating group. Some credit unions, including those on this list, will even pay the charge on your behalf.
What are the pros of credit unions?
The benefits of credit unions include reduced fees and more competitive interest rates than large banks, depending on the financial product you choose. Credit unions are not-for-profit institutions that serve a specific community, so they can distribute profits to their members.
How does a credit union make money?
A credit union, like a bank, makes money by charging interest and fees.
Why do people prefer credit unions over banks?
People may prefer credit unions to banks because they receive individualized service as members of an organization.
Is my money safer in a credit union than in a bank?
A credit union provides the same level of security for your money as a bank. Funds in a bank or credit union are guaranteed by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) for up to $250,000 per account owner. So, if either fails, you will receive a return of up to $250,000.
Credit unions vs. banks
Here are some of the benefits of using a credit union rather than a bank, as well as what credit union members may be losing out on that a bank can provide.
In Conclusion
Choosing the proper credit union entails carefully analyzing elements that will affect your ability to bank effectively and have the most enjoyable experience. Credit unions provide several benefits, such as member ownership, customized service, and reasonable rates. Compare these variables to your financial needs and aspirations, and ensure that you are eligible to join the credit union of your choosing.
The post How To Select The Best Credit Union appeared first on ThemoneyMail.
This post first appeared on The Money Mail - A Blog About Mark And Lucy, Talking About Money And Life, please read the originial post: here
