Why You Can Trust Us

Investopedia was founded in 1999 and has been helping r♛eaders find the best credit unions since 2021. Investopedia’s research and editorial teams conducted independent, unbiased research into the credit union industry to offer a variety of recommendations for people in different circumstances. Investopedia conducted research into 13 credit unions, evaluating each one across 31 dimensions. Over 400 data points were collected, covering availability, account types, fees, APYs, and more.

What Is a Credit Union?

A 澳洲幸运5开奖号码历史查询:credit union is a not-for-profit organization that offers financial products and services like savings accounts, CDs, 澳洲幸运5开奖号码历史查询:credit cards, and loans. When you join, you become a member and a partial owner of that credit union. This means you’re able to vote on crܫedit union policies and to elect the volunteer board of directors. 

Since credit unions aren’t for-profit institutions, the profits they earn are returned to customers by offering lower interest rates on loans and higher 澳洲幸运5开奖号码历史查询:annual percentage yields (APYs) on checking and savings accounts.

Typically, credit unions serve a particular population of people, whether that’s a certain geographic regio✱n or members of a certain group. Generally, you must 𓂃be a member to use a credit union’s services and products. 

Plus, if you join a federally insured credit union, your deposits are insured up to $250,000 per person for each account ownership category. The insurance is provided by the 澳洲幸运5开奖号码历൲史查询:N꧟ational Credit Union Administration (NCUA) which operates the National Credit Union Share Insurance Fund.

To ensure that a credit union is insured, check that they have an N🔴CUA logo on their website or in their physica🌜l location. You can also look up the information .

What’s the Difference Between🥀 Credit 🎀Unions and Banks?

Unlike credit unions, banks are typically for-profit companies that distribute profits to shareholders. Because of this, they may offer lower rates on savings products and charge higher ra꧟tes on loans than credit unions.💜 

In contrast, credit unions are not-for-profit organizations, so they’re exempt from paying certain taꦕxes. Therefore, they may offer better deals on products and services. 

Yet since credit unions are meant to serve only a portion of the popu♊lation, they may be smaller, offering fewer types of products and services and providing more limited online and mobile banking technology than large commercial banks.

Furthermore, large banks may offer more brick-and-mortar locations and ATMs thaꦚn credit unions, which may be helpful for people who prefer visiting physical locations or who want easy access to cash.

Lastly, both credit unions and banks are insured. Credit unions are insured by the NCUA while banks are insured by the 澳洲幸运5开奖号💟码历史查询:Federal Deposit Insurance🌌 Corporation (FDIC), which insures each depositor up to $250,000 per ownership category.

Pros and Cons of Credit Unions

Pros Explained

• Higher yields on deposits: Credit unions may offer higher APYs on their savings accounts, CDs, and 澳洲幸运5开奖号码历史查询:checking accounts than banks due to their not-for-profit structure.
• Lower rates on loans: Similarly, credit unions may charge lower interest rates on mortgages, auto loans, home equity loans, and more.
• Members are owners, too: Since credit union members are also considered owners, they have the opportunity to vote on credit union policies and leadership.

Cons Explained

• Need to be a member to use products and services: Credit unions usually have specific membership criteria—while some may only ask for a fee or donation, others might require you to live or work in a particular area to be eligible.
• Limited range of products: Depending on how large the credit union is, they may provide only a few types of accounts or loans.
• Fewer physical locations and ATMs: Unlike large national banks, credit unions may have a smaller physical presence and may only offer brick-and-mortar locations locally or regionally. Additionally, they may have smaller ATM networks, making it harder to access cash without paying an ATM fee.
  

How Do You Join a Credit Union?

1. Do your research: Before you 澳洲幸运5开奖号码历史查询:join a credit union, consider what types of products or services you would want. Do you need a 澳洲幸运5开奖号码历史查询:high-yield savings account for your 澳洲幸运5开奖号码历史查询:emergency fund or are you looking to refinance your home? You’ll also want to weigh other factors that are important to you, like having access to a mobile banking app or being able to visit a physical location. After you’ve narrowed it down, look for credit unions that you’d be eligible to join and that offer those products.
2. Apply: Whenever you’re ready to apply, make sure you have your Social Security number, a form of valid ID, and possibly a document for proof of residency. Some credit unions may also require a minimum opening deposit for savings accounts, so make sure to have cash on hand for the initial deposit.
3. Read any account disclosures and information: Before you choose a particular product, thoroughly review the product details. For example, do you need to maintain a minimum balance in your savings account to earn a certain APY? Are there 澳洲幸运5开奖号码历史查询:overdraft fees on the checking account you'll use for daily expenses? Understanding what you're signing up for can prevent confusion later on.
   

How We Find the Best Credit Unions

Investopedia’s full-time research and editorial teams conducted independent, comprehensive res♌earch into credit unions in January 2025. 13 credit uni🌱ons were chosen for in-depth research, with 31 criteria collected for each credit union. Nearly 200 data points were used to score and rank credit unions to determine the best picks above. 

Information was 𒆙collected from company websites and customer service representatives. Any data points not used for scoring purposes were collected for background, such as information about ATM networks and account promotiဣons. Investopedia’s full-time compliance team maintains the information on this page to ensure the content remains accurate and the best picks remain relevant.

The criteria were broken down into the following categories, with individual🧔 weights based on their relative importance for the aveꩵrage credit union customer:

• Account Terms: 43%
• Customer Satisfaction: 20%
• Credit Union Availability: 15%
• Account Availability:12%
• Account Fees: 10%