Best credit unions of May 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 5:20 a.m. UTC March 20, 2024
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Credit unions can be an attractive alternative to traditional banks, thanks to potentially lower fees and higher interest rates on checking and savings products. These nonprofit institutions, though, require you to become a member to open an account, and some membership requirements can be stringent.
Account details and annual percentage yields (APYs) are accurate as of February 20, 2024.
Best credit unions
- Boeing Employees’ Credit Union.
- Connexus Credit Union.
- Digital Federal Credit Union.
- PSECU.
- La Capitol Federal Credit Union.
- Apple Federal Credit Union.
- Consumers Credit Union.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 35 credit unions reviewed.
- 4 levels of fact checking.
- 35+ data points analyzed.
Best for high yields on low balances
Boeing Employees’ Credit Union
Best for high yield checking
Connexus Credit Union
Best for young savers
Digital Federal Credit Union
Best for high CD yields
PSECU
Best for high yields on medium balances
La Capitol Federal Credit Union
Best for high short-term CD yields
Apple Federal Credit Union
Best for good yields on high balances
Consumers Credit Union
Compare the winners
| Credit Union | Fees | Products | APY for High-yield savings |
|---|---|---|---|
BECU
| Outgoing wire transfers, NSF fees, stop payment
| Checking, Savings, CDs, IRAs, MMAs, Credit Cards, Auto Loans, Home Loans, Personal Loans
| 6.17% APY on balances up to $500, then 0.50% APY on greater balances
|
Connexus Credit Union
| Inactivity fee, overdraft fee, stop payment, excessive withdrawal
| Checking, Share Certificates, Savings, HSAs, MMAs, IRAs, Auto Loans, Home Loans, Student Loans
| 0.25%
|
Digital Federal Credit Union
| Outgoing wires, stop payment, overdraft, replacement card
| Checking, Savings, MMAs, Certificates, IRAs, Auto Loans, Credit Cards, Student Loans, Home Loans, Personal Loans
| 3.56% APY on all balances
|
PSECU
| Stop payment, overdraft, skip a pay, outgoing wires
| Checking, Savings, Certificates, IRAs, Credit Cards, Home Loans, Auto Loans, Personal Loans, Financial Services
| 0.50%
|
La Capitol Federal Credit Union
| Low balance checking fee, stop payment, overdraft fees
| Checking, Savings, IRAs, Share Certificates, Credit Cards, Home Loans, Auto Loans, Personal Loans
| 0.20%
|
Apple Federal Credit Union
| Some checking fees, stop payment, NSF, skip a pay, wire transfers
| Some monthly fees, stop payment, inactive account, NSF, skip a pay, wire transfers
| 0.10%
|
Consumers Credit Union (MI)
| Inactivity, overdraft, NSF, stop payment, low balance fee (interest checking only), wire transfer fees
| Checking, Savings, MMAs, CDs, IRAs, Credit Cards, Home Loans, Auto Loans, Personal Loans
| 0.10%
|
Methodology
In our rankings, we rewarded credit unions that offer a wide swath of products, high yields, low fees and good customer service. In this way, a credit union is a blend between an online bank (which typically offers high yields on products like CDs) and traditional banks (which tend to have a robust consumer experience). There are tradeoffs, to be sure, but we wanted the best of all possible worlds.
To that end we gave the following weights to the datasets we amassed:
- Yield: 25%.
- Fees: 20%.
- Fee-free ATM network: 10%.
- Checking accounts, savings accounts, CDs (or certificates), money market accounts: 5% each.
- Customer experience: 8%.
- App experience: 6%.
- Minimum balance requirements: 6%.
- Online banking: 5%.
Why some credit unions weren’t picked
We picked our winners from a set of 35 credit unions from across the country, such as Credit Union of Denver and Blue Federal Credit Union, in addition to our winners.
What is a credit union?
A credit union offers similar products and services as a bank, but there’s one major difference: Credit unions are not-for-profit organizations owned and managed by their members.
“Because credit unions are not-for-profit, you can trust that they are acting in the best interest of their members, as the money that credit unions earn is returned to members in the form of better rates and lower fees,” said Laura Sterling, vice president of marketing at Georgia’s Own Credit Union.
Credit unions also tend to be community and member-focused. For instance, they may promote financial education and provide support for local small businesses.
Unlike banks, credit unions usually have membership eligibility requirements. Often, these are based on your location, industry, employer or being a member of another organization.
Deposits at a credit union are federally insured, much like they are at a bank. But the National Credit Union Administration (NCUA) insures these deposits, rather than the Federal Deposit Insurance Corporation (FDIC).
How does a credit union work?
Credit unions offer a range of financial products and services, including savings accounts, checking accounts and certificates of deposit (CDs), to their members.
When credit unions make a profit, they reinvest it in services and benefits for their members. For example, a credit union may offer savings accounts or CDs with highly competitive rates. Or they may offer discounts on loans.
Credit unions are also member-led. Members vote on a volunteer board of directors to manage the institution.
If a credit union were to fail for any reason, members’ deposits — up to federal limits — would be safe. This is because credit union deposits, like bank deposits, are insured.
Types of credit unions
There are several types of credit unions, each serving a different category of members. Below are several examples of different types of credit unions:
- Local credit unions. Local credit unions serve a particular community or geographical area. Generally, you have to live within that area to be eligible for membership.
- Federal credit unions. These are accessible nationwide but may have other eligibility requirements.
- Group credit unions. These are credit unions that serve a particular group of people with a shared cause or mission.
- Employer credit unions. Employer credit unions limit membership to specific employers, industries or professions.
- College or university credit unions. Certain colleges and universities have their own credit unions for their students, staff, faculty and alumni.
- Military credit unions. Military credit unions offer products and services, including loans and bank accounts, tailored to military families and veterans.
Pros and cons of credit unions
Like banks, credit unions have advantages and disadvantages.
Pros
- Member-owned and operated.
- Profits return to members via low fees, high yields and member perks.
- More personalized service.
- Focus on financial education.
- Insured deposits up to federal limits.
Cons
- May be limited to small geographical areas.
- Online and mobile banking platforms may not be as robust as larger banks’.
- Must be a member to access products and services.
How to choose the best credit union
You’ll want to weigh several factors when looking for the best credit union. At a minimum, these include accessibility, interest rates, fees and membership eligibility.
- Branch and ATM availability. Many credit unions are limited to a small geographic location, so choose one that’s convenient for you. Check on a credit union’s ATM network and reimbursement policies, too, since there may be times when you can’t access a branch.
- Online accessibility. If you plan to do any mobile banking, it’s worth learning about a credit union’s mobile banking tools and checking its user ratings.
- Interest rates. Look for credit unions offering high-yield savings accounts — and even interest-bearing checking accounts — to make sure your deposits earn competitive interest.
- Fees and requirements. Check account terms for monthly maintenance fees, ATM fees, minimum balance requirements and any other limitations.
- Membership eligibility. Consult membership eligibility requirements to see whether or not you qualify. Some credit unions may require you to live in a certain area, while others don’t. You can also join many credit unions through a membership of a partner organization.
And of course double-check that it has NCUA insurance coverage, before joining any credit union.
How to join a credit union
Different credit unions have their own steps you need to take to join. But first, you have to find a credit union with eligibility requirements you can meet. Luckily, doing so shouldn’t be too difficult.
“Many credit unions now hold community charters and can serve anyone who lives, works, worships or studies in a particular area — often as large as a state or several states,” said Linda Douglas, Senior Vice President, chief marketing officer at Lake Trust Credit Union. “Nearly everyone is eligible to join more than one credit union; take a little time to research. You might want to start with your state’s credit union league.”
If you’re eligible, you can usually join a credit union online or at a branch. You’ll need to provide a form of ID and some personal information, like your Social Security number, birth date and address. You’ll also need to make an initial deposit, generally between $5 and $25.
How to open a credit union account
Opening a credit union account is similar to opening a bank account. You can typically open an account online or in person. You can open an account when you become a member — in fact, some credit unions require you to open a savings account when you join. But you can also open a new account as an existing member.
Head into a branch or log in to your bank’s website to open a new account. Keep in mind that some accounts — like CDs in many cases — may require you to make a minimum deposit when you open the account.
What's the difference between a credit union and a bank
Credit unions and banks serve similar purposes, but they have a few key differences. Check out the differences and similarities between banks and credit unions in the table below:
| Credit unions | Traditional banks |
|---|---|
Insured by the NCUA
| Insured by the FDIC
|
Not-for-profit
| For-profit
|
Member-owned
| Privately owned or publicly traded
|
Tend to have fewer fees
| Tend to have more fees
|
Tend to have higher savings interest rates
| Tend to have lower savings interest rates
|
May be limited to smaller geographic areas
| Many banks are nationally or regionally available
|
Mobile and online banking may be more limited
| Mobile and online banking tools tend to be more robust
|
Must meet membership eligibility requirements to join
| No membership eligibility requirements to join
|
Tips for making the most of your credit union membership
Once you choose and join a credit union, you gain access to all of the products and services it offers. But many people don’t realize all the perks that come from their credit union membership.
“Take a little time to learn more about what your credit union has to offer,” said Douglas. “Most credit unions offer a complete range of financial services including mortgages, financial planning, auto loans and more — often at more favorable rates and with lower fees than you’d experience elsewhere.”
Douglas also suggests reaching out to your credit union before applying for any new loans or accounts to see if they can help.
“Many credit unions offer benefits such as relationship pricing, so that the more you bank with them, the better your rates and fees,” she said.
You may also not realize that many credit unions participate in nationwide networks that provide additional benefits. For example, Douglas notes that these networks can provide free access to tens of thousands of ATMs nationwide.
Another way to maximize your credit union membership is to take advantage of personalized customer support. While many credit unions support online banking, personalized service — in-person or over the phone — is a perk you shouldn’t overlook.
Finally, look beyond deposit accounts and loans to see what other resources your credit union provides.
“Credit unions give back to their members in a number of ways, including free financial education seminars, scholarship opportunities and sweepstakes,” said Sterling. “Visit their website regularly and make the most of their unique offers.”
Frequently asked questions (FAQs)
No, credit unions aren’t FDIC-insured. But they are insured by the National Credit Union Administration, or NCUA. The NCUA works similarly to the FDIC and insures up to $250,000 per account type, per depositor in the case of credit union failure.
Both credit unions and banks — as long as they’re insured — are safe places to keep your money. Credit unions are insured by the NCUA, while banks are insured by the FDIC. Both entities insure your deposits up to $250,000 per account type, per depositor in case of bank or credit union failure.
Credit unions don’t directly help you build credit, but they offer several products and services that may help you improve it. For example, credit unions generally offer lower interest rates on loans and credit cards. And when you can afford to borrow money and stay on top of monthly payments, you can gradually improve your credit. Some credit unions may even offer credit-builder loans, which are designed to help you establish or improve your credit.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
