August 2023’s Top 7 Credit Unions

August 2023's Top 7 Credit Unions

Best Credit Unions: A Comprehensive Guide to Making Smart Financial Decisions

Credit Unions

Our experts have carefully chosen the best products and services to help you make smart decisions with your money. In this article, we will explore credit unions, their benefits, and the best credit unions to join. Credit unions are not-for-profit businesses that require membership to keep your money with them. They offer lower fees, higher interest rates for savings accounts, and lower rates on loans compared to traditional banks.

Benefits of Credit Unions

Unlike banks, credit unions are not-for-profit businesses, which means they can offer better financial products and services. Here are some of the reasons why credit unions are a great choice:

  • Lower fees: Credit unions generally have lower fees compared to banks.
  • Higher interest rates: Credit unions offer higher interest rates for savings accounts.
  • Personalized customer service: Credit unions are known for their great personalized customer service.
  • Competitive financial products: Credit unions offer products that are more competitive than traditional banks.

The Best Credit Unions

After reviewing several credit unions throughout the US, we have compiled a list of the best credit unions to make your choice easier. These credit unions are not only easy to join but also offer minimal fees and top-notch features. The best credit unions include:

  • Alliant Credit Union
  • Bethpage Federal Credit Union
  • Connexus Credit Union
  • Consumers Credit Union
  • Pentagon Federal Credit Union
  • Quorum Federal Credit Union
  • Wings Financial Credit Union

Rest assured, all credit unions on our list are protected by NCUA insurance, making them a safe choice for your money.

Insights from Financial Experts

To provide you with expert advice on choosing the best credit union, we consulted banking and financial planning experts. Here’s what they had to say:

How to Decide Between a Bank and a Credit Union

According to Tania Brown, a certified financial planner at SaverLife, deciding between a bank and a credit union involves considering five categories: location, interest rates, services, technology, and relationships. She suggests prioritizing your preferences to make an informed decision. For example: – If multiple locations are important to you, banks typically offer more branches. – If high-interest rates are your priority, credit unions are known to offer better rates. – If you value a wide range of services, larger banks generally offer more options. – If personalized customer service is essential, credit unions are known for their exceptional service. – If you are tech-savvy, larger banks typically offer more advanced online features.

Sophia Acevedo, a certified educator in personal finance and banking reporter, highlights that credit unions usually require membership, which may involve specific criteria such as living in a certain area or working for a participating employer. This membership requirement may impact your decision.

How to Determine if a Credit Union is Right for You

Tania Brown advises considering your needs when choosing a credit union. For example, if having access to a large ATM network is important, opt for a credit union with partnerships to reduce ATM fees.

Mykail James, a certified financial education instructor, suggests researching the membership requirements and ensuring that you meet the criteria.

What Makes a Checking Account Good?

According to Roger Ma, a certified financial planner, factors such as the availability of ATMs, minimum balance requirements, free checks, and online bill pay can contribute to the quality of a checking account. Sophia Acevedo adds that it’s important to consider customer support availability and mobile app ratings when evaluating a checking account.

What Makes a Savings Account Good?

Roger Ma suggests assessing the ease of accessing funds from an online savings account. Mykail James highlights that a good savings account should not have fees, restrictions on saving amounts, and should offer competitive interest rates. He also recommends considering the frequency of interest payouts and the stipulations for earning interest.

Methodology: How We Chose the Best Credit Unions

At Personal Finance Insider, our mission is to help people make the best financial decisions. In selecting the best credit unions, we considered factors such as ease of joining, competitive products, high rates, and strong customer support. All of our top picks are federally insured by the NCUA, ensuring the security of your money.

These credit unions stand out for their diverse features and the excellent value they bring to their members. However, we understand that individuals may have different preferences and priorities, so it’s essential to consider your own financial needs before choosing a credit union.

Frequently Asked Questions

Alliant Credit Union

  • Why it stands out: Alliant is an online-only credit union with a large network of free ATMs.
  • How to join: Join Foster Care to Success, or meet specific criteria such as being an employee, retiree, or relative of a member.
  • Things to consider: Alliant may have higher savings interest rates elsewhere.

Bethpage Federal Credit Union

  • Why it stands out: Bethpage offers competitive rates on checking and savings accounts and provides access to shared branch locations in New York.
  • How to join: Open a savings account with $5.
  • Things to consider: There may be higher savings rates available at other institutions.

Connexus Credit Union

  • Why it stands out: Connexus offers competitive rates and a high-rate checking account for frequent debit card users.
  • How to join: Become a member of the Connexus Association with a donation or meet specific criteria.
  • Things to consider: Other credit unions may offer higher savings interest rates.

Consumers Credit Union

  • Why it stands out: Consumers Credit Union’s Free Rewards Checking Account is a top pick for rewards checking accounts.
  • How to join: Pay a membership fee to the Consumers Cooperative Association and open a savings account.
  • Things to consider: Qualifying for the highest interest rate tiers may require using a Consumers Credit Union credit card.

Pentagon Federal Credit Union

  • Why it stands out: PenFed offers one of the top savings rates in the industry with low minimum deposits.
  • How to join: Meet specific eligibility criteria or open a savings account with $5.
  • Things to consider: Overdraft protection options are limited to a line of credit.

Quorum Federal Credit Union

  • Why it stands out: Quorum does not charge monthly service fees for certain accounts and has a good reputation.
  • How to join: Be part of a Select Employee Group or join specific organizations.
  • Things to consider: The interest rates on their checking accounts may be lower compared to other rewards checking accounts.

Wings Financial Credit Union

  • Why it stands out: Wings Financial offers various checking and savings accounts with high rates and nationwide ATM access.
  • How to join: Donate to the Wings Financial Foundation, meet eligibility criteria, or have a family member who is a member.
  • Things to consider: Their ATM fee policy may not be as impressive as other credit unions.

Other Credit Unions and Considerations

In addition to the top credit unions, we reviewed several others. Although they didn’t make the cut, they may still be suitable options for specific individuals. Factors such as interest rates, eligibility criteria, and branch availability were taken into consideration.

Before making a final decision, it’s essential to evaluate the trustworthiness of a credit union. The Better Business Bureau (BBB) grades companies based on factors such as response to customer complaints and transparency. The credit unions mentioned in this article have a solid A+ rating from the BBB, except for Bethpage and Wings Financial, which have specific circumstances regarding their BBB ratings.

While a good BBB grade can indicate reliability, it’s always a good idea to seek recommendations and read reviews from others to make an informed choice. Remember, finding the right credit union for your needs requires considering your personal preferences and financial goals.

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