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By
Tim Maxwell
Tim Maxwell
Mortgage Expert
Tim Maxwell is a freelance personal finance writer with over two decades of media experience. His work has been published in Bankrate, CBS News, Experian and other outlets. Tim is passionate about financial literacy and empowering people to take control of their finances. When he’s not writing or geeking out over his budget, he enjoys creating memories with his family in the Sierra Nevada mountains.
Read Tim Maxwell's full bio
Reviewed By
Kristy Snyder
Kristy Snyder
Banking Expert
Kristy is a freelance contributor to Newsweek’s personal finance team. As an editor, Kristy has worked with sites like Bankrate, JPMorgan Chase and NextAdvisor to craft and hone content on banking, credit cards and loans. She’s also written for publications such as Forbes Advisor and U.S. News and World. In her spare time, Kristy loves traveling, hitting up rail trails and reading.
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Many national banks are increasing fees while offering paltry savings rates, making credit unions an attractive alternative. Credit unions are nonprofit organizations owned by their members. Their primary purpose is to serve their account holders.
The credit unions often provide a variety of benefits, including high annual percentage yields (APYs) and low (or no) fees on their checking, savings and other deposit accounts. Here’s how the best credit unions can benefit you, depending on your specific financial needs.
Our Methodology
Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Our Picks
- Best Overall: Alliant Credit Union
- Best for CD Rates: Connexus Credit Union
- Best for Checking Account APY: Consumers Credit Union
- Best for ATM Availability: Pentagon Federal Credit Union (PenFed)
- Best for Military Members and Their Families: Navy Federal Credit Union
- Best for Membership Fees: Bethpage Federal Credit Union
- Best for Competitive Rates: Andrews Federal Credit Union
- Best for ATM Withdrawal Limits: Chevron Federal Credit Union (Spectrum)
- Best for Checking Account Perks: Blue Federal Credit Union
- Best for Free Checking: Service Credit Union
- Best for Sign-Up Bonus: First Tech Credit Union
11 Best Financial Credit Unions of 2024
Best Overall
Alliant Credit Union
Vault Verified
Members
839,296
Total Assets
$18.4 billion
Number of ATMs
80,000+
Why We Chose It
Alliant Credit Union offers its more than 700,000 members some of the highest APYs available for share certificates (similar to certificates of deposit). It also provides competitive APYs on savings, no fees in many cases and up to $20 a month in rebates (available to checking account holders) for using out-of-network ATMs.
Pros
- Above-average APYs
- No membership fee
- Access to 80,000 fee-free ATMs
Cons
- No money market accounts
- No branches
- No business checking or savings accounts
Additional Information
Headquarters
- Chicago, IL
Total Deposits
- $14.4 billion
Total loans
- $15 billion
Available Products
- Checking
- Savings
- Share certificates
- Custodial accounts (UTMA)
- Credit and debit cards
- Home loans
- HELOCs
- Personal loans
- Auto loans
- IRAs
Best for Checking Account APY
Consumers Credit Union
Vault Verified
Members
222,367
Total Assets
$3.5 billion
Number of ATMs
30,000+
Why We Chose It
Consumers Credit Union provides free rewards checking that earns 3%, 4%, or 5% APY, depending on the balance. The credit union also offers unlimited reimbursem*nts for ATM fees.
Pros
- High APY for checking
- No monthly maintenance fees
- Network of more than 30,000 ATMs
Cons
- Credit union’s branches limited to Illinois
- Low APY on savings and share certificate accounts
- APY requirements
Additional Information
Headquarters
- Gurnee, IL
Total Deposits
- $2.8 billion
Total loans
- $2.6 billion
Available Products
- Checking
- Savings
- CDs
- HSAs
- Money market accounts
- Credit and debit cards
- Home loans
- Home equity loans and HELOCs
- Personal loans (members only)
- Business checking and savings
- Business money market accounts
- Business loans
- Business credit cards
Best for Military Members and Their Families
Navy Federal Credit Union
Vault Verified
Members
13,342,112
Total Assets
$170.8 billion
Number of ATMs
30,000+
Why We Chose It
Navy Federal Credit Union, one of the world’s largest credit unions, is ideal for military members, veterans, Department of Defense personnel and their families. The credit union receives high customer service marks, earning 4.6 out of 5 stars on Trustpilot with more than 22,000 reviews.
Pros
- Competitive share certificate rates
- Fee-free access to more than 30,000 ATMs in U.S. and Canada
- No monthly fee on most deposit accounts
Cons
- Strict membership requirements
- Low number of branches worldwide for its vast membership
- Low savings APY
Additional Information
Headquarters
- Vienna, VA
Total Deposits
- $144.3 billion
Total loans
- $123.8 billion
Available Products
- Checking
- Savings
- CDs
- Money market accounts
- IRAs
- Credit and debit cards
- Home loans
- Home equity loans and HELOCs
- Personal loans
- Student loans
- Auto loans
- Business checking and savings
- Business loans
- Business credit cards
Best for Membership Fees
Bethpage Federal Credit Union
Vault Verified
Members
458,847
Total Assets
$12.9 billion
Number of ATMs
30,000
Why We Chose It
Qualifying for membership can be challenging with many credit unions—but not with Bethpage Federal Credit Union. With $5, you can open a savings account and begin receiving member benefits like an interest-earning checking account without paying monthly fees.
Pros
- Anyone can join with $5 opening deposit (for savings account)
- No monthly maintenance fees
- Competitive APYs on share certificates
Cons
- Branches only in New York
- Low APY for standard savings account
- Requirements to earn APY for checking
Additional Information
Headquarters
- Bethpage, NY
Total Deposits
- $10.7 billion
Total Loans
- $9 billion
Available Products
- Checking
- Savings
- CDs
- Money market accounts
- IRAs
- Credit and debit cards
- Home loans
- Home equity loans and HELOCs
- Personal loans and lines of credit
- Student loans
- Business checking and savings
- Business loans
- Business credit cards
Best for CD Rates
Connexus Credit Union
Vault Verified
Members
468,325
Total Assets
$5.3 billion
Number of ATMs
67,000+
Why We Chose It
Anyone can join Connexus Credit Union with a one-time $5 donation to the nonprofit Connexus Association. This financial institution offers some of the best credit union rates on checking and certificate accounts, and it doesn’t charge maintenance fees.
Pros
- High yields on share certificate accounts
- Membership open to anyone; $5 membership fee may apply
- Monthly ATM fee rebates with Xtraordinary checking account (up to $25)
Cons
- Requirements to earn highest APY for checking
- High minimum deposit for share certificates
- Lower APY for savings than some competitors
Additional Information
Headquarters
- Wausau, WI
Total Deposits
- $4.8 billion
Total Loans
- $4.7 billion
Available Products
- Checking
- Savings
- CDs
- Money market accounts
- IRAs
- HSAs
- Credit and debit cards
- Home loans
- Home equity loans and HELOCs
- Auto loans
- Personal loans and lines of credit
- Student loans
Best for ATM Availability
Pentagon Federal Credit Union (PenFed)
Vault Verified
Members
2,862,415
Total Assets
$34.8 billion
Number of ATMs
85,000+
Why We Chose It
Pentagon Federal Credit Union, known as PenFed, is one of the largest credit unions in the United States as measured by assets. You can open a checking account with a $25 initial deposit and no monthly maintenance fees, plus access to more than 85,000 ATMs nationwide.
Pros
- Access to 85,000 fee-free ATMs
- Competitive APY with Premium Online Savings account
- No monthly fees or minimum balance with free checking
Cons
- Lower APY with regular savings account
- Requirements to avoid monthly fees with Access America Checking account
- Daily balance requirements to earn interest on Access America Checking balance
Additional Information
Headquarters
- McLean, VA
Total Deposits
- $29.5 billion
Total Loans
- $28.9 billion
Available Products
- Checking
- Savings
- Money market certificates
- Coverdell certificates
- Money market accounts
- IRAs
- Credit and debit cards
- Home loans
- HELOCs
- Personal loans and lines of credit
- Student loans
Best for Competitive Rates
Andrews Federal Credit Union
Vault Verified
Members
131,745
Total Assets
$2.3 billion
Number of ATMs
30,000+
Why We Chose It
While it’s a smaller credit union, Andrews Federal Credit Union offers some of the highest APYs available on online savings and Kasasa checking accounts at up to 5.75% and 6.0% respectively. Anyone can become a member by joining the American Consumer Council. Andrews Federal Credit Union operates in Washington, D.C., Maryland, Virginia, New Jersey, as well as overseas locations in Germany, Belgium and the Netherlands.
Pros
- High APYs on CDs, savings and checking accounts
- No monthly fees or minimum balance with free checking
- $25 in monthly ATM fee refunds
Cons
- Qualifications to earn high APY
- Other savings accounts have low APYs
- Some accounts have monthly fees (though most are waivable with direct deposit)
Additional Information
Headquarters
- Suitland, MD
Total Deposits
- $1.9 billion
Total Loans
- $1.9 billion
Available Products
- Checking
- Savings
- CDs
- Money market accounts
- IRAs
- Credit and debit cards
- Reloadable debit cards
- Home loans
- Home equity loans and HELOCs
- Personal loans and lines of credit
- Business checking and savings
- Business loans
- Business credit cards
Best for ATM Withdrawal Limits
Chevron Federal Credit Union (Spectrum)
Vault Verified
Members
135,514
Total Assets
$4.7 billion
Number of ATMs
80,000+
Why We Chose It
Also doing business as Spectrum Credit Union, Chevron Federal Credit Union offers a checking account with no monthly fees or minimum balance. The ATM withdrawal limit is higher than most at $1,000 per day. While savings accounts can be divided to help save for individual savings goals, APYs are lackluster and higher elsewhere.
Pros
- No monthly fees or minimum balance for member checking accounts
- New Solutions checking account allows members with poor financial history to get a second chance at managing a checking account
- Sub-savings accounts for organizing your savings goals
Cons
- $25 minimum balance for dividend savings and to avoid a monthly fee
- Mediocre interest rates on savings accounts and CDs
- ATM charges after eight transactions
Additional Information
Headquarters
- Concord, CA
Total Deposits
- $4.0 billion
Total Loans
- $4.1 billion
Available Products
- Checking
- Savings
- CDs
- Money market accounts
- IRAs
- HSAs
- Credit and debit cards
- Home loans
- Home equity loans and HELOCs
- Auto Loans
- Personal loans and lines of credit
Best for Checking Account Perks
Blue Federal Credit Union
Vault Verified
Members
119,777
Total Assets
$1.9 billion
Number of ATMs
30,000+
Why We Chose It
Blue Federal Credit Union offers an impressive list of extras with the NOVA Perks Checking, including dividends on your checking account balance, 5% interest rebate on loans, and locking in a 4.5% APY on a paired savings account for six months. The account has a monthly fee, but if you plan to use a full suite of Blue Federal Credit Union’s offerings, it could well be worth it.
Pros
- Checking accounts come with extra perks, like accidental death coverage, 5% interest rebate on loans, locking 4.5% interest for savings accounts, cell phone protection and more
- Bump-up CDs available
- 5,000+ co-op branches available across the U.S.
Cons
- High interest rate on Accelerated savings account capped at $1,000 balance
- Interest compounded monthly on CDs and Sky High savings account, not daily
- Fees for checking accounts (fee on the basic account is waivable)
Additional Information
Headquarters
- Cheyenne, WY
Total Deposits
- $1.5 billion
Total Loans
- $1.5 billion
Available Products
- Checking
- Savings
- CDs
- IRAs
- Credit and debit cards
- Reloadable debit cards
- Home loans
- HELOCs
- Personal loans
- Business checking and savings
- Business loans
- Business credit cards
Best for Free Checking
Service Credit Union
Vault Verified
Members
354,583
Total Assets
$5.5 billion
Number of ATMs
85,000+
Why We Chose It
With Service Credit Union’s free checking account, you get extra benefits (like ATM rebates and loan discounts) for using direct deposit and completing five or more transactions each month, but you’re not penalized with fees if you don’t. Their interest rates on savings accounts and CDs are competitive and they have low minimums to open the accounts ($5 and $500 respectively).
Pros
- High APY on savings accounts at 5% APY
- Extra benefits with free checking account
- High interest rates on CDs
Cons
- $500 balance limit for high APY in savings
- Dividend checking has low APY and a $1,500 minimum balance to avoid a fee
- High minimum and low APY on money market account
Additional Information
Headquarters
- Portsmouth, NH
Total Deposits
- $4.6 billion
Total Loans
- $4.5 billion
Available Products
- Checking
- Savings
- CDs
- Money market
- Credit and debit cards
- Auto loans
- Home loans
- Home equity loans and HELOCs
- Personal loans
- Business checking and savings
- Business loans
- Business credit cards
Best for Sign-Up Bonus
First Tech Credit Union
Vault Verified
Members
665,948
Total Assets
$16.8 billion
Number of ATMs
30,000+
Why We Chose It
It’s not often that a free checking account offers a sign-up bonus. First Tech Credit Union has a linked checking and savings rewards account that offers a high APY, $300 for signing up and other perks—provided you meet the criteria. Most of First Tech’s branches are in California, but you can join if you work for one of their 900+ partner companies or join the Financial Fitness Association.
Pros
- High APY on both Rewards checking and savings accounts at 5%
- High promotional APY on CDs at 5%
- $300 sign-up bonus on Rewards Checking when you enroll in direct deposit
Cons
- High number of transactions to qualify for checking APY (20 per month)
- Non-qualified APY is 0.01% on rewards checking
- APYs on other savings accounts and CDs are low
Additional Information
Headquarters
- San Jose, CA
Total Deposits
- $12.2 billion
Total Loans
- $12 billion
Available Products
- Checking
- Savings
- CDs
- IRAs
- HSAs
- Credit and debit cards
- Student loan refinance
- Home loans
- Home equity loans and HELOCs
- Personal loans and lines of credit
- Business checking and savings
What Are Credit Unions?
Credit unions are nonprofit financial institutions owned by their members. Like traditional and online banks, credit unions offer a range of financial products, including checking accounts, savings accounts, auto loans and mortgages. However, credit unions differ from banks in that they return profits to their members. Consequently, you’ll often find lower interest rates on loans and higher yields on checking, savings and other deposit accounts.
Can I Keep Money at a Credit Union and a Bank?
There are no restrictions on how many banks or credit unions you stash your money with. You might consider opening a credit union account to reap higher APYs on savings and share certificate accounts while maintaining a traditional bank account for checking.
How Secure Is Your Money in a Credit Union?
The National Credit Union Administration (NCUA) insures deposits in credit unions the same way the FDIC does at banks. This insurance covers up to $250,000 per individual depositor in the unlikely event that a credit union fails. Historically, no depositor has ever lost money in a credit union, so your funds are very safe.
Do Credit Unions Pay Better Interest Than Banks?
As not-for-profit entities, credit unions tend to offer their members better interest rates on deposit accounts than banks can. Banks often operate large networks of physical branches and ATMs, drawing funds away from customers and toward their own overhead.
Because credit unions are owned by their members, they also tend to charge lower interest rates on loan products. The Federal Credit Union Act caps the interest rates on loans issued by credit unions at 18%.
Below is a comparison of the interest rates on several banking products offered by credit unions versus those of banks.
| Product | Credit Unions (National Average Rate) | Banks (National Average Rate) |
| 1-Year CD | 3.26 | 2.33 |
| Money Market Account | 0.76 | 0.57 |
| Used Car Loan (48 mos.) | 6.46 | 7.51 |
| Unsecured Loan (36 mos.) | 10.83 | 11.65 |
What Are the Pros and Cons of Credit Unions?
Like most large banks, the best credit unions offer an array of products and services, including checking and savings accounts, share certificates, home and auto loans, credit cards and mobile banking. Before you apply for credit union membership, consider the following pros and cons.
Pros
- Lower loan interest rates and monthly service fees
- Higher interest rates on deposit accounts
- Owned by members
Cons
- Requires membership
- Limited availability of branches
- Smaller credit unions may offer fewer services
Credit Union Terminology
Dividend
A dividend is the money your credit union pays you for saving or investing with them. You’ll receive these dividends in the form of interest on your accounts. This is similar to how public companies pay some of their profits to shareholders in the form of dividends.
Shared Branches
Shared branches and ATMs are part of a network of credit unions that let you do business at locations away from your own credit union. You can use this online tool to find a shared branch or ATM near you.
Share Certificate
A share certificate is a type of savings account that lets you earn a higher, fixed APY in exchange for leaving your money in the account for a specific period, typically ranging from three months to five years. If you withdraw your money before the share matures, you’ll likely be hit with an early withdrawal penalty. A share certificate at a credit union is much like a certificate of deposit (CD) at a bank.
Share Draft Account
A share draft account is like a checking account at a bank, except that a share draft account gives you a share of ownership in a credit union.
How To Find a Credit Union Near Me
While credit unions offer a bevy of valuable benefits, they’re not as widely available as banks. Here’s how to find a reputable credit union in your area:
- Get recommendations. Check with family, friends, colleagues and others to see whether they use any credit unions that they’re happy with. Most credit unions are designed for a group that shares a common interest. In other words, you may already be eligible to join a credit union based on your employer, your industry, your community or any organizations you belong to, for example.
- Search for local credit unions. The National Credit Union Administration (NCUA), the federal agency that insures deposits at most credit unions, provides a credit union locator tool to help you find credit unions near you. Search the database for local credit unions and check membership requirements to determine your eligibility.
- Consider national credit unions. If opportunities to join local credit unions are scarce, widen your search to include national credit unions. Many offer access to extensive ATM networks and shared branches that may enable you to take advantage of a partner credit union near you.
Frequently Asked Questions
Are Credit Unions Really Better Than Banks?
Credit unions may be a better option if you’re looking for higher interest rates on deposit accounts, lower loan rates and fewer fees. Credit unions excel at their core products like deposit accounts, loans and credit cards. But if you’re looking for additional features like financial advisory services and investment accounts, a bank may be your best bet.
Are Banks Safer Than Credit Unions?
Generally, credit unions take fewer risks than banks since they primarily serve individuals and small businesses rather than investors. Still, deposits are federally insured with both types of financial institutions. Make sure your credit union is a member of the NCUA to ensure your money is protected up to its coverage limits if your credit union fails.
Why Should I Switch to a Credit Union?
As member-owned financial institutions, credit unions often invest in the city, industry or organization they’re affiliated with. And since credit unions are nonprofit organizations, they generally don’t charge excessive fees. At a credit union, you’ll likely pay less interest on loans and earn higher rates on checking accounts, savings accounts and share certificates.
Newsweek writer Jenni Sisson contributed to this post.
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Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Tim Maxwell
Mortgage Expert
Tim Maxwell is a freelance personal finance writer with over two decades of media experience. His work has been published in Bankrate, CBS News, Experian and other outlets. Tim is passionate about financial literacy and empowering people to take control of their finances. When he’s not writing or geeking out over his budget, he enjoys creating memories with his family in the Sierra Nevada mountains.
Read more articles by Tim Maxwell
