Best Credit Unions Of April 2024

We compared over 50 credit unions to find out which ones were the best nationwide. Read on to find out why we picked each institution, the pros and cons and how you can join.

Annual percentage yields (APYs) and account details are accurate as of April 1, 2024.

To create this list, Forbes Advisor averaged the star ratings of credit unions that were the top finishers across more than 20 of our “best of” banking studies, such as our lists of the best high-yield savings accounts, best free checking accounts and best CD rates.

Those studies analyzed more than 20 credit unions, reviewing them based on various data points, such as fees, APYs, ATM and/or branch access, customer experience, digital experience and account minimums.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

According to data from the National Credit Union Administration, as of December 2023, the average rates on CDs and money market accounts (MMAs) at credit union rates were higher than the FDIC average rates offered by banks.

The average rates on credit union CDs ranged between 1.81% APY and 3.20% APY, depending on the term, compared to bank CD rates, which ranged from 1.33% APY to 1.86% APY. At the same time, credit union money market accounts (MMAs) earned an average of 0.73% APY, compared to an average of 0.64% APY at banks.

However, average credit union rates on savings accounts and interest checking accounts were lower than the average bank rates on those products as of December 2023. At the time, the average credit union savings account earned 0.20% APY compared to the average rate at banks, which was 0.46%. Similarly, the average interest checking account at credit unions earned 0.15% APY compared to a rate of 0.22% APY at banks.

Interest rates are subject to change and are often affected by changes to the federal funds rate.

A credit union is a not-for-profit financial cooperative that is owned and controlled by its members. Credit unions provide banking services to their members, which include savings accounts, checking accounts, loans and credit cards. Because credit unions are member-owned and not-for-profit, they typically offer better interest rates and fees than traditional banks.

There are two primary types of credit unions: federal and state. Federal credit unions are regulated by the National Credit Union Administration (NCUA), while state credit unions are regulated by state governments. Federal credit unions must have a charter from the NCUA in order to operate, while state credit unions may operate under either a state or federal charter.

In addition to being operated by the state or federal government, credit unions can niche down even further by serving a specific population, such as military members, residents of a geographical area or employees of a certain business.

Credit unions operate in much the same way as banks. Deposits made by members are used to make loans to other members. The profits generated from these loans are then used to support credit union members, expand services and build reserves. Because they are member-owned and not-for-profit, credit unions can offer higher interest rates on deposits and lower rates on loans than traditional banks.

Credit unions don’t typically require customers to meet credit score requirements to become a member and open an account. Rather, membership eligibility can be determined by other factors such as place of residence or employment. However, a credit union could turn you down for a loan or credit card if you have poor credit. Every credit union is different and has different credit score requirements for approval.

Credit unions offer the same services as traditional banks, including savings accounts, checking accounts, loans and credit cards. In addition, some credit unions also offer investment services, such as retirement accounts and health savings accounts (HSAs).

Credit unions boast many benefits and some advantages over traditional banks, but that doesn’t mean they don’t have downsides. Consider these pros and cons of credit unions before joining one.

Pros

• Competitive interest rates on savings accounts
• Low interest rates on loans
• Personalized services
• Low fees on deposit accounts

Cons

• May have small branch and ATM networks
• Membership requirements to join
• Limited products and services

When choosing a credit union, it’s important to make sure you’re eligible to join. Most credit unions have membership requirements such as living in a certain geographical area, working for a particular employer or paying a one-time fee or deposit.

Once you’ve found a few potential candidates, use these features to choose the best credit union:

• Online and mobile banking. Familiarize yourself with a credit union’s website to get an idea of how easy the digital platforms will be to use.
• Branch and ATM locations. Use the NCUA’s search tool to find a credit union in your area.
• Interest rates. Compare interest rates for earning and borrowing.
• Fees. Read fee schedules for different types of accounts to find out what one-time and recurring fees you might pay to bank there.
• Product options. Find out what products are available with the credit union. Look for ones you’re interested in now as well as ones you might be interested in opening in the future.
• Limits and requirements. Consider minimum balance requirements and transaction limits.
• Customer service. Find out what the hours and contact options are for getting help.

To open a credit union account, you’ll first need to become a member if you aren’t one already. Credit union membership requirements vary but may be based on occupation, location, religious affiliation, education or family. You’ll likely need to provide documentation to verify your identity and address when submitting an application for membership.

When joining a credit union, you’ll open a share account to establish membership. Typically, this is a savings or checking account. You will be directed to do this when joining and required to make a small deposit of around $5 to $20 that stays with the credit union for as long as you do. If you’re already a member, you can apply for a new account using the online banking platform or by visiting a local branch.

The main difference between banks and credit unions is that banks are for-profit institutions that are owned by shareholders, while credit unions are not-for-profit institutions that are owned by their members. This ownership structure allows credit unions to offer higher interest rates on deposits and lower rates on loans than traditional banks. In addition, because credit union members are also owners, they may have more say in how the institution is run.

• 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

For some, credit unions are more attractive than other types of financial institutions because of their community focus and membership benefits. Perks of credit union membership may include better APYs on savings, lower interest rates on loans and more personalized service.

If you’re looking for other options that give you some of these same advantages, there are several alternatives to credit unions.

• Community banks. If you want your banking dollars to support a local financial institution that invests in your community, smaller community banks might be a good alternative to credit unions. Community banks often issue small business loans that help create jobs and support your local economy. Community banks may pay more competitive interest rates than big banks.
• Community Development Financial Institutions (CDFIs). CDFIs are typically small, community-based banks and credit unions with a special mission to invest in underserved, low-income and underbanked communities. CDFIs provide services and loans to individuals and businesses that might not otherwise have access to financial resources. The CDFI Fund, created by the U.S. Department of the Treasury, provides financing and support to certified institutions.
• Online banks. If it’s the high rates and low fees often seen at credit unions that appeal to you, an online bank might be the right choice. These banks operate entirely online, lowering their overhead significantly. Like credit unions, online banks tend to prioritize keeping costs for consumers low and providing more features, including convenient digital tools and customer service, than traditional banks. Some of the best online banks include Ally Bank and Quontic Bank.

If you’re looking for an institution that puts your best interests first, gives you a say in how it’s run and offers competitive interest rates and fees, then a credit union is the way to go. With all of the same services offered by traditional banks—plus some additional perks—it’s easy to see why more people are making the switch to credit unions every day.

Now that you know some of the best credit unions, explore how they compare to the best online banks before you make your decision.

We monitor the following banks and credit unions: ableBanking, Alliant Credit Union, Ally Bank, Amalgamated Bank, Aspiration, Axos Bank, BBVA, BankDirect, BankPurely, BankUnitedDirect, BancorpSouth Bank, Bank of America, Bethpage Federal Credit Union, Bank5 Connect, Blue Federal Credit Union, BMO Harris, BrioDirect Banking, Capital One, CFG Community Bank, Charles Schwab Bank, Chase, Chime, CIT Bank, Citibank, Citizens Bank, Connexus Credit Union, Consumers Credit Union, Current, Discover, E*Trade Bank, EBSB, Fifth Third Bank, FNBO Direct, First Internet Bank, GTE Financial, Heritage Bank, Huntington Bank, HSBC, iGoBanking, Investors eAccess, Keybank, LendingClub, M&T Bank, Memory Bank, Monifi, My eBanc, NASA Federal Credit Union, Nationwide Bank, nbkc Bank, Northern Bank Direct, Northpointe Bank, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Presidential Bank FSB, Quontic, Regions Bank, SalemFiveDirect, Sallie Mae Bank, SoFi, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, Truist, USAA, U.S. Bank, UFB Direct, Varo Bank, Virtual Bank, Vio Bank,  Wells Fargo, Zions Bank and Zynlo Bank

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