A credit union is a not-for-profit financial institution that’s owned by its members. Credit unions are similar to banks in that they often provide the same kinds of financial products like checking accounts, high-yield savings, credit cards and loans. But, sometimes, credit unions can offer an advantage over banks: Because credit unions reinvest the profits they make back into the products they offer, whereas for-profit banks give their profits to shareholders, your account rates and fees may be better with a credit union than a bank.
You’ll generally need to meet eligibility requirements in order to join a credit union and open an account. The eligibility requirements differ across credit unions, but can include where you live or work, or your affiliation with certain groups like labor unions and schools. But our favorite credit unions make eligibility easy, allowing you to join by donating a small fee to a participating organization.
CNBC Select set out to find the best credit unions on the market. Our top picks stand out for their availability nationwide, their easy-to-join membership, their variety of financial products and online/mobile services, as well as their security with National Credit Union Administration (NCUA) insurance. (See our methodology for more information on how we made this list.)
Best for no-fee checking
Alliant Credit Union High-Rate Checking
Alliant Credit Union is a Member NCUA.
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Monthly maintenance fee
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Minimum deposit to open
$25 when opening online or over the phone
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Minimum balance
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Annual Percentage Yield (APY)
0.25% with paperless and recurring monthly electronic deposit
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Free ATM network
80,000+ Alliant network ATMs
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ATM fee reimbursement
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Overdraft fee
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Mobile check deposit
Pros
- Top-rated mobile app
- ATM fee reimbursement up to $20 per month
- 0.25% APY
- No overdraft fees
Cons
- Must opt-in to paperless statements and have a recurring monthly electronic deposit to earn APY
Best for ATM access
PenFed Platinum Rewards Visa Signature® Card
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Rewards
5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on purchases at the supermarket (including most Target and Walmart locations†), restaurants, and TV, radio, cable, streaming services
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Welcome bonus
15,000 points when you spend $1,500 in first 90 days
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Annual fee
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Intro APR
0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*
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Regular APR
17.99% variable on purchases; 17.99% non-variable on balance transfers
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- High 5X points on gas at the pump and 3X on supermarket purchases
- No bonus category activations
- Good special financing offer on balance transfers
- Estimated rewards earned after 1 year: $513
- Estimated rewards earned after 5 years: $2,167
Rewards totals incorporate the points earned from the welcome bonus.
*0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
PenFed Credit Union is a close runner-up on our list because it offers its members a standout rewards credit card, on top of good ATM access with 85,000-plus fee-free ATMs for deposit holders. PenFed also offers other types of credit cards, checking and savings accounts, mortgages, auto, personal and student loans and more.
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Best for high APY
Consumers Credit Union Rewards Checking
Consumers Credit Union is federally insured by NCUA.
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Annual Percentage Yield (APY)
Up to 5.00% APY on balances up to $10,000 (0.20% APY on up to $25,000 and 0.10% APY thereafter); 0.01% APY if don’t meet requirements
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Minimum deposit to open
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Minimum balance
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Monthly fee
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Free ATM network
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ATM fee reimbursement
Unlimited reimbursement for any and all ATM fees
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Overdraft fee
Fees may apply; overdraft protection is available
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Mobile check deposit
Pros
- High APY for a checking account
- Low minimum deposit required
- No minimum balance
- No monthly fees
- Fee-free ATM network
- Offers ATM fee reimbursement
- Overdraft protection available
- Get paid as much as two days early with early direct deposit
Cons
- Requirements to earn high APY
- Overdraft fee possible
- Credit union membership required
Best for low-interest credit cards
Choice Rewards World Mastercard®
On First Tech Federal Credit Union’s secure site
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Rewards
Earn 2X points on groceries, gas, electronics, medical, household goods and telecommunications, 1X points on all other purchases
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Welcome bonus
Earn 20,000 points when you spend $3,000 in the first 60 days from account opening
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Annual fee
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Intro APR
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Regular APR
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- No annual fee
- Good rewards program for everyday purchases
- No balance transfer fee
- No fee charged on purchases made outside the U.S.
Cons
- Balance must be transferred within 90 days of account opening date
- Estimated rewards earned after 1 year: $344
- Estimated rewards earned after 5 years: $1,720
Rewards totals incorporate the points earned from the welcome bonus
Best for military members
Visa Signature® Flagship Rewards Credit Card from Navy Federal Credit Union
Information about the Visa Signature® Flagship Rewards Credit Card from Navy Federal Credit Union has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
Earn 3X points on travel and 2X points on everything else. Receive statement credits (up to $100) for Global Entry or TSA PreCheck
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Welcome bonus
Earn 30,000 bonus points when you spend $3,000 within 90 days of opening your account. You’ll also get a free year of Amazon Prime (a $139 value)
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Annual fee
$0 the first year; $49 thereafter
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Intro APR
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Regular APR
15.24% to 18.00% variable
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- Competitive rewards program for travel and everyday purchases
- Global Entry or TSA PreCheck statement credit every 4 years
- 15.24% to 18.00% variable APR
- No fee charged on purchases made outside the U.S.
Cons
- $49 annual fee after the first year
- Estimated rewards earned after 1 year: $416
- Estimated rewards earned after 5 years: $2,080
Compare offers to find the best savings account
More on our top credit unions
Alliant Credit Union
How to join
The easiest way to become an Alliant Credit Union member is by supporting Alliant’s partner charity, Foster Care to Success (FC2S). Alliant will even cover the one-time $5 membership fee to FC2S on your behalf when you apply to join the credit union.
Membership is also open to the following:
- Employees and retirees of select organizations that Alliant partners with
- Family members of current Alliant members
- Those who live or work in a qualifying community in Illinois
Locations
Alliant is an online-only credit union based in Chicago, Illinois. While there are no physical locations, Alliant offers customers access to a network of more than 80,000 surcharge-free ATMs.
Notable perks
With the Alliant Credit Union High-Rate Checking, account holders get reimbursed up to $20 per month in out-of-network ATM fees — a savings of up to $240 over the course of a year. Otherwise, get access to 80,000-plus fee-free ATMs that are in-network. Cardholders of the no-annual-fee Alliant Cashback Visa® Signature Credit Card earn up to 2.5% cash back on their first $10,000 of qualifying eligible purchases (1.5% for purchases over $10,000).
The Alliant app allows users to deposit checks, make payments, manage accounts and use Alliant’s built-in budgeting tool to set financial goals — all while on the go.
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PenFed Credit Union
How to join
You can become a member of PenFed Credit Union by opening a PenFed savings/share account with a $5 deposit and maintaining a $5 account balance in order to keep your PenFed membership active.
Locations
PenFed has 48 branches in 15 states and is based in McLean, Virginia.
Notable perks
The no-annual-fee PenFed Platinum Rewards Visa Signature® Card tops CNBC Select’s ranking of the best gas rewards credit cards for offering the highest rewards rate at gas stations with 5X points per dollar spent on gas purchases at the pump. Drivers of electric vehicles get this same return at EV charging stations, too. Cardholders can also benefit from unlimited 3X points on supermarket purchases.
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CCU
How to join
Applying for a CCU membership is a two-step process: First, pay a one-time, non-refundable $5 fee to CCU’s sponsor, the Consumers Cooperative Association. Second, deposit and maintain a minimum $5 balance in your Membership Share/Savings Account.
Locations
CCU is based in Gurnee, Illinois, and has 11 branches across the state. CCU is also part of the Credit Union Service Centers network, which provides access to over 5,000 shared branches and 30,000 co-op ATMs, primarily located in the U.S.
Notable perks
With the Consumers Credit Union Rewards Checking Account, you can earn 5.00% APY on balances up to $10,000 if you meet the below requirements:
- Receive bank statements electronically
- Make at least 12 debit card purchases each month
- Set up direct deposits, mobile check deposits or ACH credits totaling $500 or more monthly
- Spend $1,000 or more in CCU Visa Credit Card purchases each month (no minimum number of transactions)
This checking account also comes with no monthly maintenance fees, no minimum balance requirements, unlimited reimbursement for any and all ATM fees, access to over 30,000 ATMs and over 5,000 shared branches, plus the opportunity to get paid two days early with early direct deposit.
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First Tech Federal Credit Union
How to join
The simplest path to First Tech Federal Credit Union membership is to join the Computer History Museum (CHM) or Financial Fitness Association (FFA). The first year’s membership fee for the CHM or FFA is paid by First Tech, and you can cancel your CHM or FFA membership after opening an account with no impact on your First Tech membership.
Membership is also open to the following:
- Employees of (or family members of employees of) a partner company or for the State of Oregon
- Those who live or work in Lane County, Oregon
- Families or household members of a current First Tech member
Locations
First Tech has 39 branches in eight states, plus Puerto Rico, and is based in San Jose, California. Like CCU, First Tech is also part of the Credit Union Service Centers network, which provides access to over 5,000 shared branches and 30,000 co-op ATMs, primarily located in the U.S.
Notable perks
The Platinum Mastercard® from First Tech Federal Credit Union offers a pretty low regular APR (12.24% to 18.00% variable) compared to other credit cards.
Another top low-interest credit card is for reward-seekers, the Choice Rewards World Mastercard® from First Tech Federal Credit Union. The no-annual-fee card has an affordable APR (of 13.50% to 18.00% variable). Cardholders will earn 2X points on gas, groceries, household goods and more, plus there’s currently a welcome bonus in place of 20,000 bonus points when spending at least $3,000 within the first 60 days.
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Navy Federal Credit Union
How to join
Military affiliation is required to join Navy Federal Credit Union.
Eligibility options include:
- Active duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard and Space Force
- Members of the Delayed Entry Program (DEP)
- Department of Defense (DoD) officer candidate/ROTC
- Veterans, retirees and annuitants
- DoD reservists, civilian employees, civilian retirees and annuitants
- U.S. Government employees and DoD contractors assigned to DoD installations
- Family and household members of the groups above
Locations
Navy Federal has 341 branches in 31 states and is based in Vienna, Virginia.
Notable perks
With the Visa Signature® Flagship Rewards Credit Card, cardholders earn 3X points for every $1 spent on travel and 2X points on everything else. The card also offers statement credits (up to $100) for Global Entry or TSA PreCheck®, no foreign transaction fees, a complimentary year of Amazon Prime, a one-time annual fee waiver (after, $49 per year) and a welcome bonus: earn 30,000 bonus points — a $300 value — when spending $3,000 within 90 days of account opening.
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FAQs
Is it better to join a bank or a credit union?
When it comes to banks versus credit unions, one is not “better” than the other; rather, it’s more a personal preference based on what you’re looking for and your individual banking needs — credit unions may sometimes offer better rates and fees on certain products than a large, national bank but they have more limited access. At either financial institution, however, you can find products like checking and savings accounts, mortgages, auto and personal loans, etc, as well as advisory services.
Is there a downside to joining a credit union?
The biggest downside to credit unions is that they require you to become a member in order to open an account, and the eligibility doesn’t always apply to everyone. Sometimes, you’ll have to live in a certain state, work with a particular company or have an affiliation with certain groups in order to qualify.
What are the pros of credit unions?
The pros of credit unions are that they at times offer lower fees and more competitive interest rates than the big banks, depending on the financial product you choose. Since credit unions are not-for-profit institutions serving a certain community, they can pass on their profits to their members.
What’s the easiest credit union to get into?
The easiest credit union to get into is one that opens up eligibility to anyone who donates a small fee to a participating organization. Some credit unions will even cover that fee on your behalf — including a couple on this list.
What are the three largest credit unions?
The three largest credit unions currently, by assets, are Navy Federal Credit Union, State Employees’ Credit Union and PenFed Credit Union, according to DepositAccounts.
Is my money safer in a credit union than in a bank?
Your money has the same security in a credit union as it does in a bank. Funds in a bank or a credit union are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), respectively, for up to $250,000 per account owner. So, in the event either fails, you’ll be refunded your balance of up to $250,000.
Why do people prefer credit unions over banks?
People may prefer credit unions over banks for the personalized service they receive being a member of an organization.
How does a credit union make money?
A credit union makes money similar to how a bank does, through the interest and fees it charges.
Bottom line
Credit unions that open up membership to virtually anyone can be an attractive option for your banking needs. The ones on this list are easy to join and offer standout financial products for their members.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit union review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit union products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit unions.
Our methodology
To determine which credit unions provide the best place to bank, CNBC Select analyzed the largest U.S. credit unions. We narrowed down our rankings by only considering credit unions that include the following features:
- Available nationwide
- Easy to join
- Offer a wide variety of financial products
- Have some standout products
- Offer online and mobile banking
- Ease of use and account accessibility
- Customer reviews, when available
All of the accounts included on this list are National Credit Union Administration (NCUA)-insured up to $250,000. This insurance protects and reimburses you up to your balance and the legal limit in the event your credit union fails.
The rates and fee structures for credit union products are subject to change without notice, and they often fluctuate in accordance with the prime rate. Your earnings depend on any associated fees and the balance you have in your account.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
