One of the biggest differences between banks and credit unions is how to join. While banks are typically open to anyone, credit unions require a membership to open an account or use any services.
Membership eligibility is different for each credit union and is often restricted to those living in a certain area or working for select employers.
However, there are many credit unions throughout the country that provide alternative ways to become a member, opening their eligibility to anyone. If you’re interested in joining a credit union, here is a list of institutions you may be able to join.
[See: Best Credit Unions]
What Is a Credit Union?
A credit union is a nonprofit financial institution that operates as a member-based cooperative. Opening an account with a credit union gives you a small ownership share, meaning any profits that a credit union earns are returned to you and other members.
Credit unions usually offer slightly better interest rates on their products than banks, although they may not have as many products to offer their members. Similar to banks, credit unions are federally insured by the National Credit Union Administration, or NCUA, for deposits up to $250,000.
Many credit unions are based in the community through which they were founded and tend to service a regional membership base. The local connection can help them build relationships with their members. Credit unions may not have as many branch locations as banks, opting to provide more online banking and ATM access.
[Read: Best Checking Accounts.]
9 Credit Unions Anyone Can Join
1. Affinity Plus Federal Credit Union
Easiest way to join: You can earn membership eligibility by making a one-time dues payment of $25 to the Affinity Plus Foundation. If you live, work, worship or study in Minnesota, you are also eligible to become a member.
Why you should: Affinity Plus Federal Credit Union offers good rates on money market accounts and certificates of deposit. Members are also automatically enrolled in a rewards program where they can earn points based on account activity.
2. Alliant Credit Union
Easiest way to join: Eligibility can be granted through a $5 contribution to the Alliant Credit Union Foundation. The credit union will donate the $5 on your behalf.
Why you should:Alliant Credit Union has competitive interest rates on its high-yield savings accounts and CDs. Members can also enroll in free overdraft protection and utilize the credit union’s 24/7 customer support.
3. Bethpage Federal Credit Union
Easiest way to join: If you are a U.S. citizen or permanent resident with $5 to put toward a savings account, you are eligible to join Bethpage.
Why you should: Bethpage Federal Credit Union offers competitive rates and a low minimum deposit of $50 on CDs. Students are eligible for high annual percentage yields on savings accounts.
4. Boeing Employees Credit Union
Easiest way to join: You can become a member by donating $5 to the GoWest Foundation.
Why you should: BECU offers free Member Advantage checking and savings accounts with high APY on the first $500. The credit union also offers a cash-back credit card with no annual fee and 1.5% back on all purchases.
5. Digital Credit Union
Easiest way to join: Digital Credit Union offers membership eligibility through several affiliate associations. Of those, Reach Out for Schools has the lowest membership fee of $10.
Why you should: DCU offers competitive rates on savings accounts with balances up to $1,000. Members also have access to over 80,000 ATMs through the CO-OP, Allpoint, and SUM networks.
6. First Technology Federal Credit Union
Easiest way to join: You can become eligible to join the credit union by paying $15 to become a member of the Computer History Museum or $8 to join the Financial Fitness Association.
Why you should: First Technology Federal Credit Union offers high rates on its First Tech Rewards Checking account. Members also have access to over 6,000 shared branches through the CO-OP network.
7. Lake Michigan Credit Union
Easiest way to join: Donating a minimum of $5 to the ALS West Michigan Chapter will grant you eligibility to become a member.
Why you should: Lake Michigan Credit Union offers good rates on checking, certificate and money market accounts. Members can access over 55,000 ATMs as part of the Allpoint network.
8. Pentagon Federal Credit Union
Easiest way to join: Similar to Bethpage, membership can be earned by applying for a Regular Savings account with a minimum deposit of $5.
Why you should: PenFed offers low- or no-cost checking and savings accounts, as well as high APYs on CDs.
9. Wings Financial Credit Union
Easiest way to join: You can become a member of the credit union by making a $5 donation to the Wings Financial Foundation.
Why you should: Wings Financial Credit Union offers good rates on checking accounts and CDs. Members do not pay any monthly service fees.
[See: Best High-Yield Savings Accounts]
How to Choose a Credit Union
There is a wide variety of credit unions throughout the country serving millions of members. Keep these tips in mind as you search for a credit union to join.
— Rates and fees. Credit unions tend to offer lower fees and better interest rates on their products than banks, but that is not always the case. Review the credit union’s rates page before making the decision to join.
— Products and services. While credit unions may not have the wide variety of products that banks have, they may offer more specialized products to members.
— Eligibility. Not all credit unions are open to everyone, but you may be eligible. Check your local credit unions to see if you could join based on where you live or work.
— Access. Credit unions are often smaller than banks. To make up for this, they emphasize service. See if the credit unions you’re interested in offer robust online banking services and extended access to customer service.
More from U.S. News
20 Largest Credit Unions in America
9 Credit Unions Anyone Can Join originally appeared on usnews.com
