FAQs
Credit unions are regulated by the National Credit Union Administration, or NCUA, or by state agencies. The NCUA oversees the safety and soundness of all credit unions. If you want to check up on your credit union, make sure it's federally insured by the NCUA and look at its finances, you can do that any time.
Can anyone join a local credit union? ›
Anyone can join a credit union, as long as you are within the credit union's field of membership. This is the common bond between members. The common bond could be your: Employer - Many employers sponsor their own credit unions.
How good is a credit union? ›
The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.
What's the difference between a local credit union and a big bank? ›
The fundamental difference lies in the fact that banks are run as for-profit enterprises, whereas credit unions are nonprofit. Credit unions are also member-owned and all members have a say in how the business is run.
What is a weakness of a credit union? ›
Weaknesses of Credit Unions
Membership is restricted. The membership of a credit union is restricted to a specific community, most often a religion, profession, or geographic location. For a member to be eligible to join a credit union, they must belong to a group listed in the credit union's charter.
What's the best credit union to join? ›
Here are some of the country's top credit unions:
- Alliant Credit Union. Alliant offers an above-average interest rate for savings. ...
- Consumers Credit Union. ...
- Navy Federal Credit Union. ...
- Connexus Credit Union. ...
- First Tech Federal Credit Union.
What is a disadvantage to using a credit union? ›
Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.
Is it better to join a bank or a credit union? ›
A credit union might be the better choice if you value high savings account rates and low fees, plus like the idea of being part of the ownership group. But if you need a bigger menu of banking products and services and want to be near a branch, then you may be better off at a traditional bank.
Which is safer, banks or credit unions? ›
Credit unions are generally considered to be safer than banks during economic downturns due to their conservative approach to risk and their emphasis on financial robustness.
What is the best bank to use? ›
Best Banks of July 2024
- Capital One 360 Checking: Best online checking account.
- Chase Total Checking®: Best for a large branch network.
- Axos Bank Rewards Checking: Best for online account options.
- Discover® Bank: Best for doing all of your banking at one place.
- Synchrony Bank: Best high-yield savings account.
Because banks are focused heavily on profits, many—especially the brick-and-mortar ones—offer lower-than-average interest rates on savings and higher rates on loans compared to credit unions (and many online banks).
Do credit unions help build credit? ›
While the individual options may differ from one to the next, most credit unions offer custom loan programs designed to help borrowers establish credit for the first time or rebuild damaged credit. Some credit unions use aptly-named “credit builder loans” that function much like secured credit cards.
How to verify a credit union is legitimate? ›
You can tell if your credit union is federally insured by NCUA by searching for a credit union in Find a Credit Union (Opens new window). In addition, credit unions must display in their offices the official NCUA insurance sign.
What are 3 things they should consider when choosing a bank credit union? ›
How to choose the best credit union: 5 things to consider
- Membership requirements.
- Range of products and services.
- Fees and account requirements.
- Dividends.
- Customer service and accessibility.
Is there a downside to joining a credit union? ›
May offer fewer products and services.
Smaller credit unions may not offer as many loan and deposit products as big credit unions and banks. They also might not offer the latest technology, such as online banking, mobile banking and peer-to-peer payment platforms, such as Zelle.
How do you know your money is safe at a credit union? ›
Which is Safer, a Bank or a Credit Union? As long as you are banking at a federally insured institution, whether it is a credit union insured by the NCUA or a bank by the FDIC, your money is equally safe. Credit unions are owned by the members—your savings account at a credit union is a share of ownership.