The Best Credit Unions

People often ask what is the "best credit union" in my area. There is no single answer to what are the best credit unions. While trying to find the best credit unions might seem like a good way to start, the better way to find credit unions in your local area to join is to find which credit unions provides the services that you need, has ATM locations near where you live and work, and has lobby and drive-up hours that fit around your schedule - not to mention credit unions that you are eligible to join. Many credit unions are now community-based, so you may be able to walk into credit unions in your town and join, so ask yourself which one offers what you need.

Credit Unions Compared to Banks Interest Rates

Credit unions often offer competitive rates on everything from savings accounts, auto and home loans, and credit cards in part because they are non-profit agencies and have no taxes to pay and not publicly traded corporations. This way they can pay their members above-average rates on deposits and charge below-average rates on loans and credit cards. On average consumers find the best interest rates at credit unions compared to banks.

Are Credit Unions Insured?

Although credit unions generally pay higher rates on savings accounts and other types of investments than other financial institutions do, those higher rates don't translate into higher risk. That's because each account is insured for up to $250,000 by the National Credit Union Share Insurance Fund, the government's equivalent for credit unions of the FDIC. Some credit unions are insured by ASI. Check with your credit union to find out about your level of insurance protection.