The best 5 credit unions in 2024

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Credit unions have a reputation for providing more personalized services. These not-for-profit organizations focus on serving the needs of their members rather than generating profit for shareholders.

Credit unions operate as cooperatives, owned and controlled by their members. They offer various services, including savings and checking accounts, loans, mortgages, and credit cards.

While the membership aspect of credit unions seems restrictive, many come with broad and flexible requirements that make them available to anyone.

Credit unions often pass their earnings to members through lower rates on loans and higher rates on savings accounts. If you’re looking for a more personalized banking experience, credit unions prioritize financial education and building relationships with their members.

Best credit unions 

Here are our top picks for the best credit unions. All come with robust product offerings, competitive rates, educational tools, and NCUA insurance.

• PenFed Credit Union
• Alliant Credit Union
• Consumers Credit Union
• Connexus Credit Union
• Navy Federal Credit Union

PenFed Credit Union

How to join: Anyone can become a PenFed member by opening a savings account and depositing at least $5.
Locations: PenFed Credit Union is based in McLean, Virginia, but serves members nationwide.

Pentagon Federal Credit Union (PenFed) is the second-largest federal credit union, with almost 3 million members. With its roots in serving military personnel and their families, PenFed has expanded its membership.

Here’s a breakdown of some of PenFed’s accounts. 

Alliant Credit Union

How to join: Membership is open to employees of partnering organizations, their family members, those who live or work in select Chicago communities, or by joining Foster Care to Success for a one-time $5 fee.
Locations: Alliant Credit Union is headquartered in Chicago, Illinois, but primarily serves members online.

Alliant is a major player in the credit union space, with more than 800,000 members nationwide.

This credit union offers bank accounts, loans, investing services, insurance products, and a credit card. The online platform and mobile banking app make it easy to keep tabs on your money 24/7. Plus, you can withdraw funds at over 80,000 fee-free ATMs nationwide.

Here’s a look at some of Alliant’s accounts. 

Consumers Credit Union

How to join: You can become a member by joining the Consumers Cooperative Association for a $5 fee, which is reimbursed by the credit union.
Location: Consumers Credit Union is based in Lake County, Illinois, but serves members nationwide.

Consumers Credit Union is a smaller credit union boasting plenty of banking options. This includes checking accounts, savings accounts, health savings accounts, CDs, and more.

Interest rates are competitive. For example, you can earn up to 5.00% with a Consumers’ Rewards Checking account. Accounts also offer access to over 30,000 fee-free ATMs and unlimited out-of-network ATM fee reimbursements.

Connexus Credit Union

How to join: You can become a member by joining the Connexus Association for a one-time $5 fee.
Locations: Connexus Credit Union has branches primarily in Wisconsin, but also serves members nationwide through its digital banking platform.

Connexus Credit Union operates primarily in Wisconsin but serves more than 460,000 members across the U.S. with its digital banking platform. You can access many different services to meet your financial needs, from bank accounts to credit cards to auto loans.

Here’s a look at some of Connexus’ featured accounts. 

Navy Federal Credit Union

How to join: Membership is open to active duty military, veterans, and their families.
Locations: Navy Federal Credit Union is based in Vienna, Virginia, and has over 300 physical branches worldwide, primarily serving military communities.

Navy Federal Credit Union is the largest credit union in the world, with over 12 million members. It offers financial products and services for members of the armed forces, veterans, and their relatives.

Many of the checking and savings accounts skip the monthly maintenance fees. Plus, interest rates on credit cards, auto loans, and mortgages are some of the lowest in the industry.

With Navy Federal, you can access over 300 physical branches and 30,000 in-network ATMs. There are several checking accounts and other bank accounts to choose from, but here’s a look at some featured options. 

What is a credit union?

A credit union is a not-for-profit financial cooperative that is owned and controlled by its members. Credit unions offer many of the same services as banks, such as checking and savings accounts, loans, and credit cards. 

Some key characteristics of credit unions include: 

• Member-owned: Credit unions are owned by their members, who are also their customers. This means that profits are returned to members in the form of lower fees, better interest rates, and improved services. 
• Not-for-profit: Credit unions operate to serve their members, not to maximize profits for shareholders. This allows them to prioritize member needs and offer more competitive rates and fees. 
• Eligibility requirements: To become a member of a credit union, you typically need to meet certain eligibility requirements, such as living in a specific geographic area, working for a particular employer, or belonging to a certain organization or association. 
• Democratic control: Credit union members have the right to vote on important decisions, such as electing board members or approving mergers. This ensures that the credit union is accountable to its members and operates in their best interests.

What’s the difference between a credit union and a bank?

The key difference between a credit union and a bank is the ownership structure.

“Banks are owned by shareholders, while a credit union is owned by the members who appoint heads to run the union,” says Mark Stewart, a certified public accountant at Step by Step Business. “Banks have a variety of users who are usually not connected, while credit unions comprise members who share a common characteristic of location or employment.”

Another key distinction is the focus on customer service. Credit unions take a community-oriented approach, supporting local initiatives and investing in the communities they serve.

While still providing customer service, banks are more profit-driven and may focus on maximizing shareholder value. They may have a broader range of services and more extensive branch networks but may not always offer the same competitive interest rates as credit unions.

Still, deciding between the two isn’t always so cut and dry. Sometimes, having accounts at both may be in your best interest.

“There's no rule against having accounts at both a bank and a credit union, and doing so can allow you to take advantage of the benefits each has to offer,” says Sherman Standberry, a certified public accountant at My CPA Coach. “You might choose to have a checking account with a bank for convenience and a savings account with a credit union to benefit from higher interest rates.”

Advantages of joining a credit union 

Lower fees 

Because credit unions are non-profits and have lower overhead costs than traditional banks, they can often offer lower fees for their products and services. This can include lower or no monthly maintenance fees, lower overdraft fees, and lower fees for using out-of-network ATMs.

Better interest rates 

Credit unions often offer higher interest rates on savings accounts and certificates of deposit (CDs) compared to traditional banks. They may also offer lower interest rates on loans and credit cards, which can save you money on borrowing costs over time.

Personalized services 

Credit unions are known for providing more personalized, attentive service to their members. Because they serve a specific community or group, credit unions can often tailor their products and services to meet their members' unique needs. You may find that credit union staff are more willing to work with you to find solutions to financial challenges or to help you achieve your financial goals.

Community focus 

Many credit unions are deeply involved in their local communities and use their profits to support charitable causes, financial education programs, and other initiatives that benefit their members and the broader community. 

What to consider when choosing a credit union

Before applying for a new account with a credit union, keep these factors in mind:

• Membership requirements: Credit unions have specific eligibility criteria based on your location, employer, or affiliation with particular organizations.
• Services: Look for a credit union offering various financial products. This helps ensure your current and future financial needs will be met.
• Access: An extensive branch and ATM network means easier access to in-person services and fee-free transactions.
• Online and mobile banking: Look for credit unions with secure digital banking options, allowing you to access your account anytime, anywhere.
• Customer service: Read reviews to get a feel for the credit union's level of customer service. Make sure the customer support hours work for you.

How we rated the best credit unions 

To determine the best credit unions, we carefully evaluated a wide range of factors, including interest rates, fees, minimum deposit and balance requirements, and product mix. 

Our team analyzed numerous credit union offers and selected the top contenders based on these key criteria. The options on this list represent the best value benefits available.

Here are some of the key factors we considered:

• Interest rate: The interest rate is the primary reason someone would choose a savings, CD, or money market account over another, so this is our most heavily weighted factor. 
• Fees: Low fees can help minimize the cost of managing your money and accessing essential financial services, allowing you to keep more of your hard-earned cash.
• Minimum deposit & balance requirements: High minimum deposits can be a barrier, and high balance requirements to avoid fees or earn the best rate limit the account's usefulness.
• Product mix: A diverse product mix allows customers to find the right financial solutions for their unique needs and goals. 
• Customer service: Reliable customer service is essential for a positive banking experience. 
• Digital experience: With more banking done online, the quality of an account's digital offerings is increasingly important.
• ATM & branch access: Access to ATMs and branches gives bank customers the flexibility to handle their banking needs in person when necessary while also providing easy access to cash when they need it.

Frequently asked questions about credit unions

Are credit unions safe?

Yes, credit unions are generally safe and secure places to keep your money. Like banks, credit unions are insured by the federal government, either through the National Credit Union Administration (NCUA) or the Federal Deposit Insurance Corporation (FDIC). This means that your deposits are protected up to $250,000 per person, per account.

Can anyone join a credit union?

Not everyone is eligible to join every credit union, as each one has its own membership requirements. However, there are many credit unions with broad eligibility criteria, such as living in a certain state or being related to someone who is already a member. Some credit unions also allow anyone to join in exchange for a small charitable donation.

Do credit unions offer the same services as banks?

Credit unions offer many of the same basic financial services as banks, such as checking and savings accounts, loans, and credit cards. However, some credit unions may have more limited offerings compared to large national banks. 

How do I find a credit union near me?

To find a credit union near you, you can use online tools like the NCUA's Credit Union Locator or the Credit Union National Association (CUNA) website. 

The bottom line

Ultimately, the best credit union for you depends on your specific needs. Look for a credit union with a stellar reputation, robust services, and competitive rates to get you one step closer to your financial goals. Before opening an account, consider what each credit union offers to make an informed decision.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.