Member savings credit unions offer members unique perks and strive to help them meet their financial goals. Unlike banks, member savings credit unions don’t typically charge monthly service fees and often provide higher interest rates on savings accounts, money market accounts and certificate of deposit (CD) investments than traditional banks do – making these accounts great places for emergency savings or saving for big purchases.
Credit unions differ from banks in that members own them, providing voting rights and access to all services offered by the credit union. New members typically require making an initial minimum $5 deposit before accessing other products and services offered by their institution.
Membership requirements of member savings credit unions tend to be straightforward. Most require joining an association affiliation that can easily be done online through their website; in certain instances a fee may be assessed but this will usually be covered by the credit union itself.
Member savings credit unions offer competitive CD and savings account rates at more attractive terms than banks do, while offering superior customer service such as 24-hour live phone support and free online banking.
Some credit unions provide open membership, welcoming anyone who meets certain requirements – for instance, Signature Federal Credit Union accepts membership applications from people working for certain employers, being members of Marymount University alumni association, immediate family or household members of existing members, etc. Other credit unions may provide special benefits to military personnel or those in certain locations.
Member savings credit unions offer other advantages, including earning rewards on checking accounts or getting discounted car loans and mortgages. Furthermore, certain of these institutions provide health insurance, retirement planning advice, as well as free tax preparation services.
If a credit union doesn’t have branches nearby, it is crucial that it is NCUA-insured in order to protect deposits made with them should it go bankrupt. A NCUA-insured institution will often display this symbol and information on their website. Avoid those without insurance – those without coverage could lead to financial trouble in the form of fines and other fees, so take caution with any transactions with these businesses. At times, state-chartered credit unions may provide accounts insured by the National Credit Union Administration, but in most cases the only surefire way of protecting deposits is opening an account with one that’s nationally chartered and NCUA insured – these institutions can be found listed on the U.S. Department of the Treasury list of national credit unions which is updated periodically here.