From a functional standpoint, there isn’t much difference between a credit union and a bank. Both offer a variety of deposit accounts, loans, and credit accounts to personal and business customers. But credit unions differ in that they are owned by their members instead of shareholders. They're also organized as nonprofit enterprises. As a result, you’ll often find more competitive rates at credit unions than at many banks. Often, there's just as wide a choice of products and accounts. That makes them an excellent choice for your banking needs. We’ve identified credit unions open to customers nationwide and then compared interest rates, account types and features, the ability to bank in-branch, and the ease of membership to whittle the list down to our top picks in these categories. In the News: In general, credit unions outperform banks both in terms of the APYs they pay on savings and the interest rates charged to customers for borrowing money. According to recent figures from the National Credit Union Administration (NCUA), credit unions offered their customers an average APY of 3.26% on 1-year CDs in Q14 2024 compared to an average rate of 2.33% from banks. Meanwhile, during the same period, credit unions charged an average interest rate of 6.40% for a 60-month new car loan versus an average of 7.21% from banks. Best Credit Unions Best Credit Unions Final Verdict Compare the Best Credit Unions Pros and Cons Alternatives FAQs Methodology Why We Chose It Blue Federal Credit Union offers virtually every type of account or loan you’ll need and pays well-above-average rates. It charges zero or minimal fees and is very easy for anyone to join. Add in-person banking at thousands of credit union branches across the country, and you can see why we’ve named it our best overall credit union. Pros and Cons Pros One-stop-shop for most consumers’ every banking need Five checking account choices, including free and high-yield options Savings and CD rates at two or more times the national average Ability to bank in-branch at more than 5,000 credit union locations nationwide Cons A handful of other credit unions and online banks offer higher savings and CD rates Not as large an ATM footprint as some networks Overview Blue Federal Credit Union has a full-service menu offering checking, savings, money market, and CD accounts. It also offers health savings, IRA, and business accounts, and multiple credit cards. Moreover, Blue has most of the loans you could want, including mortgages, vehicle loans for students, personal, and business loans. It has great rates and in-person access. Fees are low or non-existent for most accounts. Plus, rates on savings and CDs are higher than the national average. Meanwhile, its high-yield checking option is one easy to qualify for, requiring just 10 debit transactions per month instead of the more typical 12 to 15. Blue participates in the Co-Op Shared Branch network of credit unions. This enables you to bank at more than 5,000 credit union locations throughout the U.S., as well as use more than 30,000 nationwide ATMs. Blue Federal Credit Union targets Wyoming and Colorado. People in those states who don’t meet the credit union’s standard eligibility requirements can join by simply donating $5 to the affiliated Blue Foundation and keeping a minimal $5 in savings. Why We Chose It Liberty Federal Credit Union, previously known as Evansville Teachers Federal Credit Union, offers an open door to everyone within its field of membership. And with its extensive choice of checking accounts, including one of the best high-yield options anywhere, it wins our honors for best credit union for checking. Pros and Cons Pros High-yield checking account with a chart-topping rate on balances up to $20,000 Option to earn rewards points instead of a high APY Ten free ATM withdrawals Cons CD rates are high, but no high-yield savings account available Free checks only for those under age 23 or older than 55 No youth or teen accounts Overview Liberty Federal Credit Union (LFCU) covers all the checking account options, including a basic free checking account, debit card, or a money market account that pays more than the national average. They also have two accounts in which you can earn a phenomenal rate or rewards if you use your debit card regularly. If you’re willing to regularly use a debit card, you can earn much more with LFCU’s Vertical Checking account. This high-yield account currently pays 3.45% APY on balances up to $20,000. To earn this impressive rate in any given month, make at least 15 debit card purchases, arrange for one or more direct deposits, login at least once via online or mobile banking, and sign up for paperless statements. With the same monthly qualifications, you can instead opt for Platinum Rewards Checking, which pays one point per dollar spent with an LFCU credit card, or two dollars spent with an LFCU debit card. Redeem accumulated points for merchandise, cash back, gift cards, or travel. Joining LFCU is easy and open to all who are members of organizations in its field of membership or employed by or retired from an employee group in its field of membership. Membership entitles you to all the banking and loan services the credit union offers. Just make a $5 donation to their affiliated nonprofit, the Mater Dei Friends & Alumni Association, and keep at least $5 in your member savings account. Why We Chose It As an online-only institution operating out of the Chicago area, Alliant doesn’t have to spend money on maintaining physical branches. This allows it to pay higher rates. As a result, we’ve named it our best credit union for a savings account. Pros and Cons Pros Earn almost nine times the national average rate for a savings account Competitive checking account and CD rates Access to 80,000 free ATMs, plus refunds up to $20 per month on out-of-network ATMs Youth savings and teen checking available Cons No physical branches, and not part of a shared branch network No health savings accounts (HSAs) No business accounts Overview If a high-yield savings account is among your banking priorities, Alliant Credit Union is an excellent option. Its High-Rate Savings currently pays almost nine times more than the Federal Deposit Insurance Corporation (FDIC)’s recent national average savings account rate of 0.33%, and it has no fees as long as you sign up for paperless statements. It also offer a high-rate checking account, teen checking, and certificates of deposit (CDs) with competitive rates. All this makes it a viable option to handle most of your everyday banking needs. What you can’t get with Alliant is in-person banking, as there are no Alliant branches and they don’t participate in the shared network for credit unions. But you can access a very broad and deep network of ATMs, with 80,000 of them fee-free across the country, and up to $20 reimbursed to you per month for any ATM fees you incur out-of-network. Joining Alliant is not only easy but free. If you don't meet standard eligibility requirements, you can become a member of Alliant's affiliated nonprofit Foster Care to Success. Alliant will cover the one-time $5 membership fee. Why We Chose It Service Credit Union offers great rates (and even better bonus rates for deployed individuals), few fees, and low minimums. This makes it our pick for the best credit union for active and veteran military personnel and their families. Pros and Cons Pros Exceptional rates on savings accounts A free no-minimum checking account that pays interest Low minimum deposits for CDs with competitive rates Access to over 85,000 free ATMs and 5,000+ shared branches nationwide Cons No high-yield checking option For larger savings account balances, online banks pay more Though its CDs are competitive, higher rates can be had elsewhere Overview Service Credit Union puts the focus on active duty military personnel, veterans, and their family members. The result is a full-range credit union that pays some of the best rates available. At Service, you can earn many times the average national rate on savings accounts. A balance up to $500 currently earns 5.00% APY. Service offers other great reasons to join. Its checking account is free, has no minimum balance requirement, and pays interest. Its CDs have a low minimum deposit requirement of just $500 with competitive rates. It also offers a holiday savings account that pays an appealing rate. Among Service’s most attractive offerings is its Deployed Warrior Savings account, which is open to those currently on active duty in a combat zone. For those who qualify, the account pays an eye-popping rate of 10% APY on balances up to $10,000. Membership in Service Credit Union is open to anyone who is active duty military, a veteran, or a current or former employee of the Department of Defense or other select employers. Those who are directly related to a military individual are also eligible, including not just immediate household members but also siblings, parents, grandparents, and grandchildren. In addition, non-military individuals can become members by joining the American Consumer Council (free of charge) or the Financial Fitness Association. Why We Chose It Easy-to-join First Tech Credit Union wins our top prize for the best credit union for families with children. A youth bank account can be a great way to instill smart money skills at an early age. First Tech’s Start Up Savings account pays a phenomenal 5% APY on all balances up to $1,000 with a minimum balance requirement of $5. Pros and Cons Pros Pays one of the highest national rates on savings accounts for minors, and offers fee-free youth checking Accounts for parents include high-yield checking, a top-paying HSA, and low-interest credit cards Access to free ATMs and 5,600 shared branches nationwide Cons Except for kids' savings, savings account rates are subpar CD rates aren’t very competitive No free checks on either adult checking account Overview California-based First Tech offers a Start Up Checking account for kids. This account features a great rate, no fees, and is open to any age child up to age 18. With parental consent, your child can have a debit card. The checking account also has no minimum balance requirement. First Tech has plenty to offer parents as well, providing a full array of accounts, credit cards, and loans. Especially attractive is no membership fee. All that’s required is that each member keep $5 in their member savings account. If you’re in the market for an all-in-one banking option and expect to use a variety of products, it’s hard to beat Blue Federal Credit Union. Its extensive selection of accounts, credit cards, and loans is enhanced by rates that overshadow the majority of financial institutions. Plus, it features no or low fees and an easy membership process. On top of that, with Blue’s participation in the Co-Op Shared Branch network, you can do in-branch business at thousands of credit union locations across the U.S. Pros Higher annual percentage yields Lower borrowing rates and fees Member-owned NCUA insurance Cons Membership requirements Higher rates may be available elsewhere Limited branch availability A credit union can be a great solution for your everyday banking needs. However, if you don’t believe an account with a traditional credit union is right for you, here are a few other options to consider. Yes, a credit union can be as safe a place for your hard-earned funds as a bank. That’s because, just like banks, the vast majority of credit unions are federally insured, providing protection on up to $250,000 in deposits per individual per institution. So if your credit union fails, all of your deposits up to this threshold are safe. Banks are protected via the Federal Deposit Insurance Corporation, or FDIC, while credit unions are protected by the NCUA, or National Credit Union Administration. The disadvantages to banking with a credit union are minimal. Some credit unions may not offer all of the products that you need or desire. Some very small credit unions may not offer a robust online or mobile customer interface. The key is simply to choose a credit union that offers a wide assortment of products, and especially those you find most important. That depends on what you're looking for in a financial institution. While banks and credit unions often offer the same types of products, banks may offer more or a greater variety of them. As membership organizations, credit unions in particular are known for their interest in helping their members achieve financial goals over the years. In the process, they may offer higher deposit rates and lower loan rates than banks. On the other hand, credit unions can be smaller than banks and lack the branch presence or ATM availability that you need. Banks don't require membership while credit unions typically do although typically, there's no fee (except for those who wish to join but aren't eligible). It can be. Credit unions offer most of the accounts that banks offer. And they operate as nonprofit organizations that answer to their customer members (rather than shareholders). They are known for placing the focus on members and their communities, providing products and services people need, often at more attractive rates and lower costs than those available at banks. Their customer service is normally considered an advantage. Not everyone does. However, for those who do, it may be because banks can sometimes offer a greater number and variety of financial products and services. They might have relationships with other financial institutions that can benefit consumers. They can have more branches and an extensive network of ATMs, which can allow people to conduct transactions close to work or home. Banks can also have a stronger online presence and online banking capability, including high-quality mobile banking apps and options. There’s no such thing as the “best” credit union for every person. However, it is possible to identify the banking features that matter most to you and match those up with the credit union that makes the most sense for your financial situation. Some of our top-rated credit unions are Blue Federal Credit Union, Liberty Federal Credit Union, and Alliant Credit Union. Credit unions are known for offering attractive interest rates on many different types of financing—auto loans included. PenFed and Consumers Credit Union are two of our highly-rated auto loan lenders. However, the interest rates that credit unions offer can change on a frequent basis. It’s important to research and compare the best auto loan rates from multiple lenders—credit unions and others—anytime you’re in the market for a new auto loan. Shopping around for the best deal on a car loan has the potential to save you hundreds or even thousands of dollars over the life of your loan. Whether you’re looking to earn the highest APY possible on your savings or to get the lowest interest rate available when you borrow money, it’s important to shop around. The credit unions with the best rates can vary from one financial product to another. Furthermore, just because one credit union offers the highest interest rates on 5-year CDs this month doesn’t mean they’ll have the highest 5-year CD rates available next month. The good news is you can rely on expert evaluations to make the research process easier to manage—see our picks for the best CD rates for more information. Many credit unions offer financial products that have the ability to help you build your credit. Credit builder loans are one example of a type of credit-building account that may be available from certain credit unions and online lenders. Credit unions may also offer credit cards and other types of loans that could help you establish your credit history when you manage the account in a responsible manner. Credit unions won’t check your credit report or score when you open a new deposit account, according to the credit bureau Experian. However, if you apply for financing through your credit union (e.g., for a credit card or loan), you should expect a credit check to occur. There are nearly 5,000 credit unions in the U.S., but the vast majority limit their customer base to a specific community, state, or region, or to a particular employee group. A little more than a hundred of them, however, make it possible to join no matter where you live or work. We started our research with these. From there, we dug into the details on which of those credit unions pay the best rates on savings and CDs, offer the best checking account options, provide the broadest array of financial services for personal and business customers, and provide the easiest and cheapest paths to membership. We also prioritized credit unions that participate in the Co-Op Shared Branch network and therefore provide local banking access even to customers who do not live where the credit union has locations. With this data in hand, we were then able to filter the best credit unions into our award categories above. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. National Credit Union Administration. "What Is a Credit Union?" National Credit Union Administration. "Credit Union and Bank Rates." National Credit Union Administration. "Credit Union and Bank Rates 2024 Q1." Blue Federal Credit Union. "Checking Accounts You Will Love." Blue Federal Credit Union. "Find a Branch Location." CO-OP Financial Services, "Surcharge-Free Access to Your Money, Almost Anywhere." Blue Federal Credit Union. "Who Can Join?" Liberty Federal Credit Union. "America's Best High-Yield Checking." Liberty Federal Credit Union. "Platinum Rewards Checking." Liberty Federal Credit Union. "Eligibility." Alliant. "Earn More Interest With a High Yield Savings Account." Federal Deposit Insurance Corporation. "National Rates and Rate Caps." Alliant. "FAQs." Alliant. "ATMs." Alliant. "Become a Member." Service Credit Union. "Rates." Service Credit Union. "Become a Member." First Tech Federal Credit Union. "Start Up Savings and Checking." First Tech Federal Credit Union. "Become a Member." National Credit Union Administration. "How Your Accounts Are Federally Insured." Federal Deposit Insurance Corporation. "Deposit Insurance at a Glance - FDIC." National Credit Union Administration. "How Your Accounts Are Federally Insured Brochure." Experian. "Do You Need a Credit Score to Open a Bank Account?" National Credit Union Administration. "Industry at a Glance: For the Quarter Ending September 30, 2022."Best Credit Unions for 2024
In the News
Best Overall : Blue Federal Credit Union
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Best for Checking : Liberty Federal Credit Union
Best for a Savings Account : Alliant Credit Union
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Best for Military Individuals & Families : Service Credit Union
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Best If You Have Kids : First Tech Federal Credit Union
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Final Verdict
Compare the Best Credit Unions
Financial Institution Why We Picked It Key Benefit Blue Federal Credit Union Best Overall Completely full-service with good to great rates across products Liberty Federal Credit Union Best for Checking Best-in-class rewards checking, as well as other checking options Alliant Credit Union Best for a Savings Account Among the highest savings account rates paid by a nationwide credit union Service Credit Union Best for Military Individuals & Families Exceptional savings rates, especially for deployed individuals First Tech Federal Credit Union Best If You Have Kids Youth savings account pays a top national rate Pros and Cons of Credit Unions
Pros Explained
Cons Explained
Alternatives to Credit Unions
Frequently Asked Questions
Is Your Money Safe in a Credit Union?
What Is the Downside of a Credit Union?
Is It Better to Join a Bank or Credit Union?
Is It Worth Being In a Credit Union?
Why Do People Prefer Banks Over Credit Unions?
What Is the Best Credit Union?
Which Credit Union Is Best for Auto Loans?
Which Credit Union Has the Best Rates?
Do Credit Unions Build Credit?
Do Credit Unions Check Your Credit?
Methodology
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What Is a High-Yield Checking Account? Top Rate on a High-Yield Savings Account Rises to New Record Navy Federal Credit Union Review Credit Unions vs. Banks: What's the Difference? Best Savings Accounts for Kids and Teens for April 2024—Rates Up to 7.00%
FAQs
What is the most trusted credit union? ›
Recap: Best Credit Unions of May 2024
- Consumers Credit Union: Best for High APYs.
- PenFed Credit Union: Best for ATM Access.
- Connexus Credit Union: Best for Checking Accounts.
- Alliant Credit Union: Best for Digital Banking.
- Bethpage Federal Credit Union: Best for Savings Accounts.
May 2, 2024
Bankrate's picks for the top 1-year credit union CD rates
- America First Credit Union: 5.25% APY, $500 minimum deposit.
- Alliant Credit Union: 5.15% APY, $1,000 minimum deposit.
- Delta Community Credit Union: 5.05% APY, $1,000 minimum deposit.
- State Employees' Credit Union: 5.10% APY, $250 minimum deposit.
Progressive Credit Union - You must be recommended by another member. This might be the most unique credit union requirement, and it also seems to be the toughest.
Which credit union has the best CD rates? ›Compare the Best CD Rates
| Institution | Rate (APY) | Minimum Deposit |
|---|---|---|
| NASA Federal Credit Union | 5.40% | $10,000 |
| CIBC Agility | 5.36% | $1,000 |
| CIBC Agility | 5.36% | $1,000 |
| Mills42 Federal Credit Union | 5.35% | $500 |
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.
What are the top credit union issues? ›Top 10 Challenges Facing Credit Unions
- Digital & AI Transformation.
- Regulatory Compliance.
- Cybersecurity.
- Competing with Larger Banks & FinTechs.
- Membership Growth & Awareness.
- Aging Membership.
- Talent Acquisition and Retention.
- Expanding Services.
May 1, 2024
AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000, Rs 2,500 to Rs 10,000 and Rs 2,000 respectively.
Where can I get 7% interest on my money online? ›As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
Where can I get 5% interest on my money? ›Nationally Available High Interest Account Rates from Our Partners
| Account Name | APY (Annual Percentage Yield) Accurate as of 5/8/2024 | Minimum Account Opening Balance |
|---|---|---|
| UFB Secure Savings | 5.25% | $0 |
| CIT Bank Platinum Savings | 5.00% (with $5,000 minimum balance) | $100 |
| Wealthfront Cash Account | 5.00% | $1 |
| Barclays Online Savings Account | 4.35% | $0 |
Apr 23, 2024
For decades, bankers have objected to the tax breaks and sponsor subsidies enjoyed by credit unions and not available to banks. Because such challenges haven't slowed down the growth of credit unions, banks continue to look for other reasons to allege unfair competition.
What credit score do most credit unions use? ›
FICO® Scores are the most widely used credit scores. Each FICO® Score is a three-digit number calculated from the data on your credit reports at the three major consumer reporting agencies—Experian, TransUnion and Equifax.
What is the easiest bank to get approved for? ›Summary: Easiest Bank Accounts To Open in 2024
| Account | Approximate time to complete application |
|---|---|
| Varo Bank Account: Best for Cash Advances | 2 to 3 minutes |
| SoFi Checking and Savings Account: Best for Member Perks | 1 to 3 minutes |
| Wise: Best for Non-Residents | 1 to 3 minutes |
| Chime® Checking Account: Best for Bad Credit | 3 to 4 minutes |
5 days ago
CD Rates Forecast 2024
The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.
You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.
Who has the highest 12 month CD rate? ›Best 1-Year CD Rates
- First Internet Bank – 5.26% APY.
- Abound Credit Union – 5.25% APY.
- First Central Savings Bank – 5.25% APY.
- Mountain America Credit Union – 5.25% APY.
- KS State Bank – 5.25% APY.
- Forbright Bank – 5.25% APY.
- Seattle Bank – 5.25% APY.
- Bread Savings – 5.25% APY.
Credit unions are backed by the National Credit Union Share Insurance Fund (NCUSIF), which is equivalent to the Federal Deposit Insurance Corporation (FDIC) for banks. This safety net guarantees your funds, typically up to $250,000 per depositor, should any unexpected turbulence occur.
Which is better for you a bank or credit union? ›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.
Are credit unions better than online banks? ›While credit unions have a stronger focus on personal relationships and physical locations, online banks provide convenience through digital platforms. However, the presence of physical locations at credit unions offers numerous advantages.
What is best source credit union? ›Founded in 1954, BestSource Credit Union is a non-profit, member-owned financial institution that is committed to improving our members' financial lives. BestSource Credit Union offers distinctive products and services designed to fit your needs at any stage of life.