It might sound easy enough to do, but many parents actually don’t know the best way to save money for kids or, at the very least, where to start.
I am not saying my ways are the best, but they certainly work for me and my little ones. Depending on your current financial situation, they might help you figure out the best way to save money for your kids.
Using these tips has helped me come up with a way to secure a better financial future for my kids without overstretching or causing unnecessary financial strain in the now.
Why Is It Important to Save Money for Our Kids?
Healthy savings will get them off on the right foot when they leave home to start a life of their own, increasing their potential for a successful future.
The money savings process provides a platform to impart financial literacy, teach financial responsibility from a tender age, and teach discipline when it comes to things like budgeting and delayed gratification.
The savings also functions as an emergency fund should anything happen to us or our kids while they are still growing up. You will enjoy the peace of mind of knowing they are cared for in the case of almost any eventuality. A will or inheritance fund ensures the savings will be spent wisely for the benefit of your kids.
Your Best Practice Guide to Saving Money for Kids
Here are some excellent tips on the best way to save money for kids.
Define Your Savings Goal
The ideal savings option will vary for different parents based on their financial goals and circumstances. Motivation ranges from emergency funds to specific stages of the child’s future, like higher education, buying their first car, or even jump-starting retirement savings. Define what you are saving for, set targets, and draw up a plan.
Set Up a Savings Account(s) for the Kid(s)
Approach your preferred financial institution and set up an account designed for the savings you settled on. Similar solutions are structured differently across each financial institution.
Budgeting
As parents, we budget all the time. Budgeting is a great way to improve money management, ensuring you always leave something for your kid’s savings account (and your own fun fund for date night or vacation). Many sources of funds can be included in the savings plan.
You can set it up so that an amount is transferred from your own bank account to the kid’s account. Some parents, myself included, also deposit their work bonuses in their kids’ savings accounts up to a predetermined date.
Alternatively, you can agree to collect all the money the children earn from chores, lawn mowing, babysitting, or other side jobs they do on their own and then set that money aside in their savings accounts after giving them a weekly stipend for their hard work, of course.
Financial Education
All this planning and investment can be undone if your kid grows up without the financial education to develop positive money habits. Involve them in your financial planning at a young age so they grasp the concept of money. Teach them your ways, one might say.
Financial literacy involves more than what children learn from listening and observation. It involves practicing positive money management habits like restrained spending, taming the urge for instant gratification and budgeting.
Add a checking account to their savings account so they get used to financial tools like a debit card for younger kids and banking apps for teens. Most of these allow the parents to keep an eye on the child’s spending habits, too, so we can easily reign things in if they start running wild.
What Is the Best Way to Save Money for a Child?
Now that you are familiar with the territory, let’s look at the options available as our kids outgrow the piggy bank we have been filling with spare change since they were babies.
College Savings Plans
College is quite expensive, and it pays to have a head start on your child’s college savings so there is adequate time to accumulate funds gradually. A good education increases your child’s earning potential and job security, leading them to financial success.
The 529 Investment Plan
A 529 Investment Plan is a tax-advantaged investment account designed to encourage saving toward future education expenses. It’s named after Section 529 of the Federal Tax Code and is sponsored by the state or a state agency.
Savings are tax-deferred, and you can withdraw the funds tax-free to pay for qualified education expenses like tuition, books, and accommodation. It lets you save for your child’s future attendance at designated colleges or universities at prevailing rates.
Custodial Accounts
A custodial account offers another opportunity to save on your child’s behalf or gift them when you get a bonus or any other windfall. One party, the custodian (typically the parent), controls the funds on behalf of the minor (the beneficiary), who will gain access to the account when they come of age (this ranges from 18 to 21, depending on the state).
As a custodian, you are free to spend the funds on anything, provided it is for the benefit of the minor. While they don’t come with the tax benefits of a 529 plan, they cover a wider scope of expenses. Once your child attains the required age, you will relinquish control of the account to them, and they can claim full use of the funds.
Uniform Transfers to Minors Act (UTMA) Accounts and Uniform Gifts for Minors Act (UGMA)
UTMA and UGMA accounts are popular examples of custodial accounts. They are set up to hold gifts that a minor has received. Once the gift is granted or transferred to the account, it can’t be revoked and becomes the minor’s asset. It is held under their social security number and taxed as their income.
Custodial Brokerage Account
A custodial brokerage account refers to when the custodial account is used as an investment account to increase savings. Savings and gifts can be channeled to a mutual fund, invested in stocks or bonds, transferred to money market accounts or any other credible investment. You will manage these investments until your child comes of age. And then it is up to them to take over.
Creating a Trust Fund for Your Child
You can always get a lawyer, an accountant, or a team with both professions to set up a trust fund for your kid(s). Besides savings, the trust fund can incorporate assets you want to transfer to the kids as they age. The trust will dictate the process and ensure your assets are transferred to the right beneficiaries when the time comes.
How to Save Money for Kids in a Nutshell
There is no limit to the number of savings accounts you can have for your child. It is actually encouraged to spread your eggs in different baskets so that you can optimize them.
One might have competitive interest rates, while another allows you to invest in assets. You can also save for a particular item that requires a separate account without locking out subsequent gifts.
Just identify the combination that works for you and make sure you teach them about other aspects of financial health as they grow, and you can cross one more thing off your list of worries as a parent. Happy savings!
ESSA Bank & Trust will pay over $3 million to resolve redlining allegations, the Department of Justice announced Wednesday evening.
The Stroudsburg, Pennsylvania-based bank, from 2017 to 2021, did not sufficiently serve the credit needs of majority-Black and Hispanic neighborhoods in and around Philadelphia by “failing to provide mortgage lending services” and “discouraging such borrowers,” the DOJ alleges. The city has a history of redlining practices that goes back to the 20th century.
Per a consent order, which is subject to court approval, ESSA will invest $2.92 million in a loan subsidy fund to increase access in minority neighborhoods, $125,000 on community partnerships and $250,000 on outreach and consumer financial education efforts.
At least 50% of the subsidy fund must be used for consumers applying for loans in majority-Black and Hispanic census tracts within a five mile radius of the bank’s Upper Darby and Lansdowne branches, the court order said.
Additional stipulations of the order require the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia, and for ESSA to conduct a research-based market study to identify the needs for financial services in communities of color. These requirements will stay in effect for five years.
ESSA’s President Gary Olson said he “vehemently [denies] the government’s allegations of redlining” but added that the company “cooperated expeditiously and fully with the investigation into this matter.”
Olson called the settlement a “constructive resolution to a dispute that has lasted several years.”
“We plan on using these loan subsidy funds to expand opportunities for qualified borrowers who can benefit from this assistance,” he added.
The now-settled allegations were brought to the attention of the DOJ by the Federal Deposit Insurance Corp. in June 2022, prompting the department to open an investigation on Aug. 15, 2022.
“Redlining in Philadelphia has deep roots, which has led decades of disinvestment in communities of color,” said Jacqueline C. Romero, U.S. attorney for the Eastern District of Pennsylvania, in a written statement.
“Accessing the American dream of owning your own home is possible only when there is equality for all in their opportunities to access lending in the residential mortgage markets,” she said. “We appreciate ESSA’s prompt cooperation with the department’s investigation.”
The settlement with ESSA is part of an interagency initiative involving the DOJ, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, which was launched in October 2021 by Attorney General Merrick B. Garland to combat redlining.
Since then, the DOJ has announced seven redlining cases and settlements totaling over $87 million in relief for communities of color, the department said. This includes a $9 million settlement with Park National Bank in March and a $31 million settlement with City National Bank in January, the largest in the department’s history.
If you never watch PBS’ “Frontline,” you’re missing out on some of the best journalism on TV. I don’t agree with every viewpoint they advocate, but each episode is thought-provoking and well done.
Recently, “Frontline” focused on “The Retirement Gamble,” as they titled the piece. It can be summed up by this quote by Zvi Bodie, a professor of management at Boston University: “401(k) plans really place the burden on the individual participant to have an adequate retirement. And the vast majority of ordinary people don’t know how to do that.”
It’s true. As if you don’t have enough going on in your life, you have to become a part-time financial planner and investment manager. You need to figure out how much to save, how to invest your savings, and how to withdraw it in a way that makes it last forever or until you die, whichever comes first.
Of course, you can always get help from the financial-services industry — in particular, the mutual fund providers, since those are the type of investments in most workers’ retirement plans. However, many of these folks are padding their own retirement accounts at the expense of yours. Here’s how economist Teresa Ghilarducci explained it to “Frontline”: “The 401(k) is one of the only products that Americans buy that they don’t know the price of it. It’s also one of the products that Americans buy that they don’t even know its quality. It’s one of the products that Americans buy that they don’t know its danger. And it’s because the industry — the mutual fund industry — has been able to protect themselves against regulation that would expose the danger and price of their products.”
I’ll add another shortfall of the 401(k) industrial complex: You don’t have a choice. The 401(k) is chosen by your employer, who might be keeping costs low by passing the costs along to you. I’m on the 401(k) committee at The Motley Fool, and I can tell you that it does indeed cost an employer money and time to provide a retirement plan; it’s not as easy as opening an IRA with a discount broker. The plan has to meet all kinds of government-mandated tests to make sure that the plan doesn’t disproportionately benefit higher-income employers and owners. So companies that offer a retirement plan deserve some level of gratitude, especially if they match employee contributions. But that doesn’t mean these companies spend the time and money necessary to make it the best plan possible.
Then there are the funds themselves. The “Frontline” episode included an interview with one of my heroes, Vanguard founder John Bogle. His best quote: “Do you really want to invest in a system where you put up 100 percent of the capital … you take 100 percent of the risk, and you get 30 percent of the return?”
Where did the other 70 percent of return go? To the fund companies, due to high fees and low performance — in Bogle’s words, “The magic of compound returns is overwhelmed by the tyranny of compounding costs. It’s a mathematical fact. There’s no getting around it.”
My picking of bones
While I generally agree with “Frontline’s” call to arms regarding the malfeasance of the mutual fund industry, there are a couple of counter-points I would have liked to see them address. First off, the episode recommends index funds over actively managed funds, featuring more footage of John Bogle, one of the main figures in the birth of index funds. However, it would be interesting to ask him why Vanguard itself has had actively managed funds for decades. Perhaps even the most famous advocate for index investing sees some value in paying a fund manager to pick the investments. And, to Vanguard’s credit, the expenses on their actively managed funds are very low. I know because I own a few of them, including a few of their index funds.
The “Frontline” episode also had its nostalgia for the good, old days of defined-benefit pensions, when an employer would reward an employee after decades of service with a monthly check in retirement for life. Like many shows that bemoan the state of retirement in America, they clearly argue that those are better than 401(k)s. However, the truth is that these pensions have their own issues. First off, even at their peak, most Americans didn’t have a pension. At least with a 401(k), workers can save for retirement in a tax-advantaged account, something they didn’t have before these accounts became prevalent in the ’80s. Also, a traditional pension mainly benefited employees who worked for the same company for decades. If you left within, say, five years (as was the case when I was a teacher), you got nothing. The money in a 401(k), however, can be taken with you.
Plus, many pensions don’t have enough money to pay future benefits and are assuming (nay, praying) that unrealistically high investment returns will bail them out. Private pensions are backstopped by the Pension Benefit Guaranty Corporation, but that “safety net” itself is underfunded by more than $20 billion. Government pensions are backed by taxes, and they’re going to hit hard as more and more Boomers retire. So defined-benefit pensions are not the panacea as they’re often portrayed, often using film footage from the ’50s (as “Frontline” did).
Finally, the episode featured interviews with everyday Americans who have little in the way of retirement savings, portraying them as victims of the mutual fund companies. In many ways, they most definitely were. Yet, as these people sit in their kitchens and living rooms, explaining their predicaments to the camera, I can’t help but notice that they have nice furniture, large-screen TVs and cable. I admit that this is a bit callous of me, but I do have a little less sympathy for people with little in savings but plenty of luxuries. (Yes, cable TV is a luxury.)
Carpe 401(k)-em
The good news for you is that you’re taking control; you’re reading this blog and probably other sources of financial education. Hopefully you’re learning how to save for, and spend in, retirement, and how to evaluate mutual funds along the way. Planning your retirement is up to you; no one is doing it for you. Financial advisers have their place, as long as they’re fee-only and fiduciaries (i.e., legally obligated to put your interests first — a standard that doesn’t apply to the large majority of financial advisers). But however you manage your finances, ensure that it’s doing more for your retirement than someone else’s.
The U.S. Department of Justice (DOJ) this week announced that it had secured a settlement of more than $3 million from Philadelphia, Penn.-based ESSA Bank & Trust over allegations that the company engaged in redlining majority Black and Hispanic communities from access to credit services around the Philadelphia area.
According to a complaint filed by DOJ in the U.S. District Court for the Eastern District of Pennsylvania, ESSA “failed to provide mortgage lending services and did not serve the credit needs of majority-Black and Hispanic neighborhoods in the Philadelphia metropolitan area” from 2017 to 2021.
“For too long, residents of communities of color have been unlawfully denied equal access to credit and shut out of economic opportunities,” said Assistant Attorney General Kristen Clarke of the DOJ Civil Rights Division in the DOJ announcement. “When banks engage in redlining, they perpetuate existing patterns of segregation and widen the racial wealth gap in our country. This resolution makes clear our commitment to holding banks and financial institutions accountable for modern-day redlining while ensuring access to fair lending in communities of color.”
Under a consent order still subject to court approval, ESSA has agreed to invest $2.92 million in a designated loan subsidy fund designed to increase access to credit for home mortgage, improvement and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods within the bank’s lending area.
ESSA has also agreed to spend $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education and credit counseling to the impacted communities specified in the complaint and consent order.
“The consent order also requires the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia and conduct a research-based market study to help identify the needs for financial services in communities of color,” the DOJ added.
In a statement announcing the settlement, ESSA “categorically denies violating any fair lending laws or engaging in ‘redlining,’” according to a press release.
“ESSA and its Board of Directors believe this is a constructive resolution to a dispute that has lasted several years,” said Gary Olsen, ESSA’s president and CEO. “It is consistent with our guiding principles and longstanding commitment to provide equal lending opportunities to all of the communities we are privileged to serve. We plan on using these loan subsidy funds to expand opportunities for qualified borrowers who can benefit from this assistance. We’re happy and pleased to help families purchase homes. It is simply the right thing to do.”
Olsen added that during the the time period covered by the government’s complaint, “ESSA did not receive a single fair lending complaint from any customer or potential customer.” He also said that the company opened a branch and business center in downtown Allentown, “in a majority minority census tract.”
DOJ opened the investigation into ESSA after being referred by the Federal Deposit Insurance Corporation (FDIC).
“ESSA fully cooperated with the department’s investigation and worked expeditiously to resolve these allegations,” DOJ said.
ESSA’s redlining settlement agreement is the latest in a series of cases brought by the DOJ. In January, Los Angeles-headquartered City National Bank agreed to pay $31 million to settle a case that alleged it avoided providing mortgage services to majority Black and Hispanic neighborhoods between 2017 and 2020.
In July, the DOJ and the Consumer Financial Protection Bureau announced a $24.4 million consent order with Trident Mortgage Co., a subsidiary of Warren Buffet’s Berkshire Hathaway.
In September, the DOJ also reached a $12 million-plus settlement with Lakeland Bank over claims the lender engaged in redlining in the Newark, New Jersey metropolitan area.
There has probably been at least one point in everyone’s life when they have engaged in a bad money habit. However, it’s best to realize your bad money habit now rather than later!
I believe it’s much better to realize your problem as soon as you can so that you can take action towards changing for the better. Doing so can help you improve your financial situation for years to come.
Understanding your bad money habits and making a change can help you stop living paycheck to paycheck, eliminate debt, pursue your passion, save for your goals, reach retirement, and more.
Here are several bad money habits that may be making you broke.
Keeping up with the Joneses – what a bad money habit!
I’m sure almost everyone, at one point in their life, has felt the need to keep up with the Joneses.
Whether you are five years old and want that new toy everyone is playing with, or if you are 40 years old and are feeling the need to upgrade your house, car, etc., everyone has experienced it.
The problem with this is that keeping up with the Joneses can make you broke.
VERY broke.
When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.
This can lead to a significant amount of debt.
Keeping up with the Joneses is not worth it because:
You will never be happy, no matter how much money you spend.
You will constantly compare yourself to EVERYONE.
You will go into debt because that’s the only way you feel like you can keep up.
You will have a loan payment for everything because that’s the only way you can “afford” everything.
You won’t have any money leftover for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.
Instead, you should figure out why you want to keep up with the Joneses, think about your own life and your own goals, realize that jealousy won’t get you anywhere, and try your best to live within your means.
Related:
Letting your emotions take control of your spending.
Emotional spending is a bad money habit that many people take part in. It’s one you should stop, because it doesn’t cure any problems.
According to NerdWallet, the average US household (who has debt) has an average credit card debt of $15,611, and I’m sure some of that is due to emotional spending.
Emotional spending occurs for many different reasons. You may have had a bad day at work, a fight with your loved one, and so on. You might even be spending because you are so stressed out about the amount of spending you have done.
To end your emotion spending habit, I recommend:
Figuring out the amount of debt you have. You’ll most likely be shocked, and hopefully this will persuade you to change your spending habits and the way you deal with stress.
Understanding why you spend when you’re stressed. In order to stop stress spending, you need to really think about why you have this problem. Without understanding your problem, you might just keep falling into the same cycle over and over again.
Thinking about your financial goals, so that you can stay motivated.
Finding different ways to deal with stress.
Sticking to a budget.
Not facing your debt.
Too many people never face their debt and don’t even know how much debt they have.
By not thinking about your total debt figure, it may seem less real and a way to run away from it. However, that will catch up to you in many ways, such as high interest charges, a bad credit score, numerous phone calls from debt collectors, possible paycheck garnishments, and more.
The first step to paying off your debt is to face it. You should add up your total debt, learn more about the debt you have, and create a plan to eliminate it.
Ignoring the importance of financial education.
Many people do not fully understand how credit cards work, how to improve their credit score, and more. However, if more people were educated on financial issues, this could lead to less debt, better managed budgets, and more.
I recommend diving into a good personal finance book, bookmarking your favorite financial blogs, staying up-to-date on the latest things going on in personal finance, and more.
Thinking you don’t need a budget.
Too many people go without a budget, because they believe they don’t need one. Sadly, many people believe that budgets are only for “poor” people, people who are horrible with money, and so on.
But, that just isn’t the case, at all. Nearly everyone needs some form of budget, even if that means just comparing your income and your expenses each month.
Budgets are great, because they keep you mindful of your income and expenses. With a budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.
Budgets have helped people reach their goals, pay off debt, make more money, retire, and more.
Believing you’re invincible.
While I always try to stay positive and am a firm believer in the power of positive thinking, I do believe that everyone should have an emergency fund. However, many people have no emergency fund whatsoever, and this is a bad money habit.
There are many reasons to have an emergency fund:
An emergency fund can help you if you lose your job. No matter how stable you think your job is, there is always a chance that something could happen.
An emergency fund is wise if you do not have great health insurance or have a large annual deductible.
An emergency fund is a good idea if you have a car and need repairs.
An emergency fund is a need if you own a home. One of the lucky things that homeowners often get to deal with is an unexpected home repair. Having an emergency fund can help you if your basement floods, if a hole forms in your roof, and more.
Emergency funds are always good to have, because they give you peace of mind when something costly happens in your life. Instead of building onto your stress, you will know you can still afford to pay your bills and worry about more important things.
Being afraid of investing.
One of the biggest bad money habits is that far too many people are afraid of investing and never start.
Here are some reason to invest:
You can retire one day.
You never know what may happen in the future, so preparing now is important.
You can allow your money to grow over time.
I always say, the first thing you need to do if you want to start investing is to just jump in. You’ll never learn unless you make an attempt.
Read more at The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!
If you are new to my blog, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $70,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $3.49 per month plus you get a free domain if you sign-up through my tutorial.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 gift card bonus to Macys, Walmart, Target, or Kohls!
Answer surveys. Survey companies I recommend include Survey Junkie, Swagbucks, Pinecone Research, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month (the first two weeks are free too) and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!
Find a part-time job. There are many part-time jobs that you may be able to find. You can find a job on sites such as Snagajob, Craigslist (yes, I’ve found a legitimate job through there before), Monster, and so on.
Lower your cell phone bill. Instead of paying the $150 or more that you spend on your cell phone bill, there are companies out there like Republic Wireless that offer cell phone service starting at $10. YES, I SAID $10! If you use my Republic Wireless affiliate link, you can change your life and start saving thousands of dollars a year on your cell phone service. I created a full review on Republic Wireless as well if you are interested in hearing more. I’ve been using them for over a year and they are great.
It has never been easier to open a bank account, especially with the spread of online services, but there has also never been so much choice about where to put your money. If you’re overwhelmed by your banking options, think about your ability to shape social change with your money. Now is a great time to consider becoming a customer at a socially responsible bank.
What is a socially responsible bank?
Corporate social responsibility is the self-regulation that businesses do to help promote a positive impact on environmental or social issues, such as racial equity.
In the banking industry, social responsibility refers to the ways banks can reduce harm or create opportunities for good. For an eco-conscious bank or credit union, that might mean it doesn’t invest in oil pipelines, deforestation or fossil fuels, or it might invest in alternative energy, plant trees or buy carbon offsets. Other banks or credit unions might be committed to equity goals by providing financial literacy programs to their communities or by giving more loans to minority-owned small businesses.
Why does it matter where I put my money?
It’s easy to imagine that the money you keep in your savings account, checking account or certificate of deposit is just waiting for you to use it. But your bank or credit union is using your money behind the scenes to lend to or invest in businesses or other customers. So even if you aren’t directly giving money to an oil refinery or company that’s clearing the Amazon rainforest, your money could still be supporting those initiatives.
There has been a long history of discrimination in the U.S. banking system against people of color, and you can put your money with a bank or credit union that’s working to support these marginalized groups. Elizabeth Vivirito, a financial services consultant who specializes in diversity, equity and inclusion, or DEI, research, says she has observed more robust changes in the banking industry around racial equity since the murder of Black man George Floyd by a Minneapolis police officer in May 2020.
“We see more people caring about where their money goes and what it’s funding,” Vivirito says.
How do I know what my bank is investing in?
It can be hard to know what a bank is doing with your money, but there are some ways to tell.
First, look at the bank’s website. Does it make any statements about its DEI goals? Does it explicitly say whether it invests in certain industries? Has the bank gone through any third-party certification processes, such as becoming a certified B Corp or joining 1% for the Planet or the Global Alliance for Banking on Values? These certifications and memberships each have goals and member requirements around sustainability and equity.
Once you’ve looked at the bank’s website, do a web search of the bank plus any keywords that you’d like to investigate, such as “social impact” or “community.” This should help you find specific statements or reports from the bank as well as any news or accountability reports from other sources that are keeping tabs on the bank’s efforts.
Note, too, that some banks are changing; they might be divesting from certain industries or adding programs to help people who have been historically shut out of banking services.
How can I find a socially responsible bank?
First, decide what social responsibility means to you. Do you want a bank committed to fighting climate change? In that case, you may want to choose a bank or credit union that is Fossil Free Certified, a certification from Bank Green. Do you want to combat financial racism and put your money into businesses that promote equity? Vivirito recommends looking into the history of your bank or credit union to see whom it was created to serve and what its mission is.
“The leadership, strategy and language of the institution should represent their community,” Vivirito says.
If you haven’t made any moves to open a new account and you’re looking for a simple way to be more socially conscious with your banking, Kara Pérez, founder of financial education company Bravely Go, says one of the easiest things you can do is move your money from a large national bank to a local credit union, which will use your money to support other local people, programs and businesses.
“Thinking about your money in a bigger picture way can help you make better decisions with it,” Pérez says. “Every dollar has power to shape our world.”
This article was written by NerdWallet and was originally published by The Associated Press.
On any given night in America, more than 600,000 people experience homelessness, according to USA Today.
A recent 5-part New York Times feature places a face on the horrors of homelessness.
With the holidays approaching, you may feel moved to help the homeless in your own community. If you’re looking for community service opportunities that help provide others with affordable housing, here’s a guide to help you get started.
Homelessness in America Homelessness is defined as living on the street for more than one year or experiencing four or more short bouts of homelessness over a recent period of time. Of the 600,000 homeless people in America, roughly a third are families. 13 percent are military veterans. 16 percent are considered “chronically homeless,” those who have been homeless over a long period and typically have a disability.
According to the National Coalition for the Homeless, Americans become homeless for a number of reasons. Families often become homeless as the result of an unforeseen financial crisis like foreclosure, medical emergency, death in the family or a lack of good job opportunities. For individuals, homelessness is often the result of a disability, mental illness, domestic violence or a lack of affordable health care.
There are many reasons why a person may become unable to afford housing. Whatever the situation, homelessness is typically the result of complex circumstances that force people to make tough choices between food, housing and other basic needs.
Fight homelessness in your neighborhood If you’d like to help make a positive impact on the homeless issue in your community, there are many ways that you can help, from making donations to volunteering your time.
Here are a few national volunteer organizations working to help fight homelessness and create affordable housing:
Move for Hunger. Working in partnership with professional moving companies in 47 states, Move for Hunger collects non-perishable food items from people who are moving to new apartments. Instead of throwing away your extra food when you move, you can call Move for Hunger and have them come to your apartment to pick up donations.
Dress for Success. Providing suits to women who have job interviews, Dress for Success aims to empower women to get back on their feet after hardships like homelessness. You can donate your new or nearly-new professional attire to the organization or give money, which is used for career assistance programs. Whenever you clean out your closet —whether you’re moving or not — you can donate to a local chapter of Dress for Success. They accept donations year-round.
National Alliance to End Homelessness. The National Alliance to End Homelessness suggests there are many ways you can work to end homelessness, ranging from writing your lawmakers about policy to participating in fundraising efforts or working for Housing First organizations that provide apartments for the homeless.
Mercy Housing. Helping to provide affordable apartments for everyone, Mercy Housing operates apartment communities for low-income tenants. You can volunteer by helping with maintenance around these communities, by tutoring or teaching job assistance or financial education classes, or by providing administrative support.
Looking for more ideas? Search online for opportunities in your neighborhood or surrounding areas. A good resource to consult is Volunteer Match, a website that allows you to search for non-profit organizations in your own backyard. From the main page, you can browse community service opportunities by issues you care about, including homelessness.
Compared to banks, credit unions offer more individualized service. Plus, many of them also provide lower fees and higher rates on certain accounts. However, you must become a member of a credit union to utilize its services. In most cases, credit union membership is reserved for people who live, work, and worship in a certain area.
Some credit unions are also geared toward those in specific professions, like education or law or anyone who makes a donation or joins an organization. You’ll be pleased to learn that most credit unions have made their membership criteria more lenient and opened up their offerings to more types of people. In fact, many of them are quite easy to join.
14 Best Nationwide Credit Unions
While many credit unions are small and can only be found in select local areas, there are quite a few that are nationwide. If you travel frequently for work or pleasure, you might be in the market for nationwide credit unions.
Fortunately, most credit unions that have a nationwide presence are easy to join and offer a variety of benefits. To make your search for the best federal credit unions a bit easier, we’ve compiled this handy list.
1. Connexus Credit Union
Headquartered in Wisconsin, Connexus Credit Union is known as one of the largest credit unions in the U.S. It has over 400,000 credit union members across all 50 states. This is no surprise as it partners with well-known companies, such as Liberty Mutual Insurance, Kraft, Honeywell, and BMW.
To join, you’ll need to qualify through your employer that’s one of the credit union’s partner companies or donate at least $5 and open an account. As a credit union member, you can enjoy high APYs on checking accounts and other deposit accounts as well as low rates on mortgages, personal loans, and car loans.
The Xtraordinary Checking Account offers an APY of up to 1.75% on certain balances so you can make the most out of your hard earned money. White you don’t have to pay any fees, Connexus does require that you spend a certain amount on your debit card and sign up for eStatements to take advantage of the interest.
Furthermore, if you don’t use your checking account for more than 90 days and have a balance of $100 or less, you may have to pay an inactivity fee. Connexus has more than 5,600 shared branches and over 67,000 fee-free ATMs. Plus, the credit union offers higher rates and exclusive discounts throughout the year.
2. Navy Federal Credit Union
If you’re part of the military community, Navy Federal Credit Union should be on your radar. You can become a member if you have an active duty or reservist military member, worked for the Department of Defense, or are the immediate family member of someone eligible for membership. You’ll also be required to open a Navy Federal savings account and make a minimum deposit of $5.
The credit union has about 350 physical branches worldwide and many of them are near military bases in Maryland, Virginia, and California. There are also more than 30,000 fee-free ATMs. If you like to do your banking on your mobile device, you’ll be pleased to know that there is a highly rated app.
If you join Navy Federal Credit Union, you can enjoy no monthly fees or minimal fees on basic savings or youth savings accounts. NFCU also offers several checking accounts as well as competitive rates for share certificates, which are basically certificates of deposits (CDs).
3. Consumers Credit Union
Based in Illinois, Consumers Credit Union has 11 branches in the Chicago suburbs but opens its membership to anyone in the country. All members get access to more than 5,000 shared credit union branches and over 30,000 ATMs.
To join, simply pay $5 and fill out a short application form. Consumers offers some of the highest annual percentage yields or APYs on its rewards checking accounts. However, it requires that you make at least 12 debit card purchases per month, enroll in eDocuments, and have a monthly minimum of $500 in ACH deposits, direct deposits, and mobile check deposits.
If you prefer, you can choose from a no-frills checking account that doesn’t earn any interest. Other product offerings include four savings accounts, IRA certificates, and money market accounts.
4. Pentagon Federal Credit Union
Founded in 1935, PenFed Credit Union is known as one of the largest credit unions in the country. It serves more than 2.8 million members and has over $36.6 billion in assets. While this best credit union was originally only available to military members and their families, it eventually opened the doors to anyone. You can join as long as you deposit $5 into a savings account.
As a PenFed member, you can reap numerous benefits, including great rates on checking accounts, savings accounts, and money market certificates. In addition, you can sign up for early direct deposit and access more than 85,000 fee – free ATMs across the nation.
Even though PenFed is not part of a shared branch network, like other credit unions, it pays high rates, and has about 40 of its own branches throughout the U.S. There’s also a solid mobile app and customer phone support with evening and weekend hours.
5. SkyOne Federal Credit Union
SkyOne Federal Credit Union is one of the best credit unions and has a mission to help families become financially stable. It serves more than 40,000 members with $600 million in assets. Since its inception in 1949, SkyOne has offered a robust lineup of financial products, like interest-bearing checking accounts, money market accounts, credit cards, mortgages, and car loans.
Its share certificates come with exceptional rates that you might not find at other credit unions. SkyOne also has a free mobile banking app, a plethora of free educational tools, and a network of thousands of credit union branches for easy access.
The main downfall of this credit union is that it’s geared toward those who work in the air transportation industry so you might have a difficult time qualifying. Fortunately, membership has recently become a bit more lenient to accommodate more people.
6. Alliant Credit Union
Illinois-based Alliant Credit Union has more than 700,000 members across the country. Unlike other credit unions on this list, Alliant operates strictly online. If you like the idea of online and mobile banking, this credit union should definitely be on your radar. Its online accounts pay highly competitive interest rates that can be as much as 22X the national average.
Plus, you don’t have to worry about overdraft or ATM fees. You can also score up to $200 per month in ATM rebates. While its checking and savings accounts are the most popular products, Alliant also provides mortgages, auto loans, personal loans, and credit cards. At this time, Alliant does not offer any no-penalty or specialty CDs.
Customer service is available 24/7 and there’s also an online contact form you can use for less pressing questions or concerns. To become a member, join Foster Care to Success (FC2S). Once you do, Alliant will pay the $5 membership fee to the organization for you.
7. First Tech Federal Credit Union
First Tech Federal Credit Union made its debut in 1952 when it was first founded by employees of Hewlett-Packard and Tektronix. Today, the credit union partners with large companies, like Hewlett-Packard, Amazon, Microsoft, and Nike. You can join as long as you work at one of its partner firms or become a member of the Computer History Museum or Financial Fitness Association.
There are 33 branches, mainly in California, Washington and Oregon, but with several locations across Colorado, Georgia, Idaho, Massachusetts and Texas. As a member, you can enjoy in-person service at more than 5,600 Co-op Shared Branch locations in the U.S.and access your money at over 30,000 free ATMs.
It offers a long list of financial products, like checking accounts, savings accounts, credit cards, loans and investment accounts. Most of these offerings come with low minimum opening balance requirements and no monthly maintenance fees. First Tech Federal Credit Union is unique in that there are many business banking services that are rarely seen at other credit unions.
9. Bethpage Credit Union
While it is located in New York, Bethpage Credit Union opens its membership to anyone who makes a $5 payment, regardless of where they live. The credit union partners with hundreds of other credit unions to offer access to more than 5,000 branches and over 30,000 fee free ATMs. Virtual visits by phone and video appointment are also available.
Bethpage’s product lineup includes three checking accounts, four savings accounts, share certificates, and money market accounts. Believe it or not, even the free checking accounts pay interest. In addition to deposit accounts, the credit union provides mortgages, home equity lines of credit (HELOCs), car loans, auto refinancing, personal loans, retirement planning, health savings accounts, IRAs, and insurance.
You can access your accounts on the go with the handy mobile app, which includes convenient features, such as budgeting tools, online bill pay, and budgeting tools. Bethpage also offers access to a digital wallet and Zelle money transfers.
10. Latino Community Credit Union
Headquartered in North Carolina, Latino Community Credit Union has 15 branches in the state as well as 1,300 free ATMs through the CashPoints network. While it was originally built for the Latino community, you don’t have to be Hispanic or live in North Carolina to join. All you have to do is submit an application and pay a $10 membership fee.
Latino Community Credit Union is federally insured by the National Credit Union Administration (NCUA) and offers 24/7 customer service via phone. Compared to brick-and-mortar banks, it provides competitive interest rates and accounts with low minimum opening balance requirements.
If you’re part of the Hispanic community, you may also benefit from services in both Spanish and English as well as a financial literacy education program that’s focused on low-income Latino families and immigrants.
11. Boeing Employees’ Credit Union
If you’re a Boeing employee or live or work in Washington, Boeing Employees’ Credit Union can be a good fit. Just keep in mind that you’ll be required to open the Member Advantage Savings account, Member Share Savings account or Early Saver account.
You can enjoy nationwide access to more than 30,000 free ATMs, discounts on local events, such as sporting games and fairs and impressive rates on CDs, money markets and IRAs. Plus, there are no monthly service fees or minimum balance requirements.
Other noteworthy perks include free credit score monitoring, Zelle payments, online bill pay, and budgeting tools. You can find more than 50 physical branches in Washington as well as one location in North Charleston, South Carolina, for in-person banking.
12. Blue Federal Credit Union
Blue Federal Credit Union began as Warren Federal Credit Union and has been in business for more than 70 years. It offers more products than most credit unions, including checking accounts, savings accounts, credit cards, home loans, personal loans, and investment banking. This is great news if you’d like the diverse offerings that are widely seen at banks at lower price points.
In addition to a vast selection of financial products, Blue Federal Credit Union provides rates as high as 2x to 5x higher than the national average and access to thousands of partner credit unions across the nation. Thanks to the tiered membership rewards program, you can earn great rewards.
To join, donate to the Blue Foundation and open a Blue FCU Membership Share Savings account. Once you’re a member, you can bank online, visit branches in Colorado or Wyoming, or go to shared branches across the U.S.
13. Wings Financial Credit Union
Wings Financial Credit Union is worth exploring, even if you don’t work in the aviation industry. It has more than 26 branches in Minnesota, Michigan, Florida, Georgia, and Washington. Not only is it NCUA insured, it’s part of the Allpoint, CO-Op, and MoneyPass ATM networks that offer access to more than 80,000 free ATMs.
To become a member, you should live in work in an eligible location, work in the aviation industry, or make a $5 donation to Wings Financial Foundation, a non-profit organization that offers financial education programs and college scholarships.
The credit union pays high interest rates on many of its accounts and doesn’t charge monthly service fees. Depending on your goals, you can open the Wings Financial High-Yield Savings Account, Wings Financial Credit Union High-Yield Checking Account, Wings Financial Investment Money Market Account.
14. NASA Federal Credit Union
NASA Federal Credit Union dates back to 1949 when it first launched to serve NASA employees. Over time, the credit union has expanded and has more than 140,000 members to date. You can join even if you’re not affiliated with NASA as long as you become a member of the National Space Society.
Popular product offerings at NASA Federal Credit Union include the Premier Checking, Premier eChecking, Premier Preferred Checking, Shared and Special Savings account or Education Savings Account.
We can’t forget the Star Trek credit cards which offer 2x points for gas station purchases, and 3x points for purchases at StarTrek.com. Furthermore, if you spend $3,000 in the first 90 days, you get a bonus of 30,000 points. You may redeem your points for merchandise, gift cards, and more.
Credit Unions vs. Banks
If you’re used to banks or unfamiliar with credit unions, you might wonder how credit unions and banks compare. The truth is both types of financial institutions offers similar products, but there are several differences between them, including:
Financial Products
In general, banks offer more financial products and services than credit unions, especially large banks with a national presence. Credit unions primarily focus on checking accounts, savings accounts, and credit accounts. While loans and investment products are less common, they can still be found at some credit unions.
Rates and Fees
Banks tend to charge higher rates and fees than credit unions. However, online banks are usually more affordable and comparable to credit unions as they have lower overhead costs. It’s a good idea to shop around so you can compare rates and fees at a variety of financial institutions and hone in on the best option.
Technology
Credit unions typically are less technologically advanced than banks. The good news is more and more credit unions, especially those with a nationwide presence, are improving their technical offerings. Many of them offer mobile apps, online bill pay, and other advanced banking tools that were unheard of in the past.
Bottom Line
With this list of the best credit unions nationwide, you’re sure to find a credit union or two that checks all your boxes. Whether you’re new to credit unions or have used them for a while, these types of financial institutions can help you meet (or even exceed) your personal finance goals.
Credit Union FAQs
What is the difference between a bank and a credit union?
While a credit union is a member-owned, non-profit institution, a bank is a for-profit financial institution that is owned by shareholders or individuals. Credit unions are known for more personal service and flexibility. Whether you use a bank or credit union depends on your unique goals and priorities.
Do I have to join a credit union?
All credit unions may have certain membership requirements. Fortunately, many are lenient and let you join if you make a donation or pay a fee. Some credit unions will pay for you once you make a deposit into an account. Of course, some credit unions limit membership to people in certain geographical locations or professions.
Do credit unions have ATMs?
Yes! In many cases, credit unions partner with a large network of ATMs. This makes it easy for you to access your money regardless of where you are.
Are credit unions insured?
Reputable credit unions are insured by the National Credit Union Administration or NCUA, which is similar to the Federal Deposit Insurance Corporation or Federal Deposit Insurance Corp of traditional banks. This means if the credit union fails because of bankruptcy, for example, you’ll get your money back.
Are credit unions online?
While credit unions have a reputation for in-person branches with individualized service, online credit unions do exist. Several examples include Alliant Credit Union, Connexus Credit Union, and Quorum Federal Credit Union. If you like the idea of online banking, an online credit union might make sense.
What is the best nationwide credit union?
Not all nationwide credit unions are created equal. In fact, there are many options available with various pros and cons. To pinpoint the ideal online or local credit union for you, explore the institutions on this list and consider your priorities. Remember, you can join multiple credit unions if you’d like.
In today’s financial landscape, consumers want a more individualized experience that may be lacking in traditional banks. This is one key factor contributing to the rising popularity of credit unions as a viable alternative.
Primarily, credit unions offer customers the opportunity to actively participate in their running, as well as access to more competitive interest rates. There are many other benefits, too.
But before we get into all that, what exactly is a credit union, and how different are they compared to banks?
What is a credit union?
If you’re thinking of joining a credit union, it’s a good idea to know exactly what you’re getting. The major difference between banks and credit unions is that credit unions are owned by the members they serve.
Unlike banks, credit unions are not a business needing to make profit. Instead, they can be defined as member-owned nonprofit financial cooperatives.
Where a bank makes profits, a credit union instead recycles funds back into itself. The result is that credit union members have access to better rates on savings and loans.
Credit unions are also much more personal and community-focused compared to traditional banks. As a credit union member, your deposits in checking and savings accounts actually help other members of your community to buy their first homes and establish businesses.
Because credit unions function as cooperatives, all members get to vote on major governance issues such as electing board members and directors.
What are the benefits of joining a credit union?
Credit union membership comes with several benefits. Some are well-known and immediate, while others might take a bit more time to see. Let’s take a closer look at how a credit union account could improve your life.
Personalized Customer Service
A credit union will have a much smaller customer base compared to a traditional bank. That, along with the fact that they are member-owned financial institutions, means credit union service comes with much more of a personal touch.
Some credit unions also provide great educational resources to help improve the finances of their members. You’re also more likely to have the chance to build a relationship with employees at your credit union, since they will also be members of your local community.
Better Interest Rates
The bottom line for credit unions is not profit, but being self-sufficient and providing good service to its members. This means that instead of making money off of customers, excess profits are passed onto customers in the form of competitive rates:
Lower interest rates on loans. Credit unions often offer better loan rates than most banks. While loan products may be more basic, you can still get mortgages, auto loans, and personal loans at better rates.
Higher interest rates on savings. Credit unions are a great place to deposit savings, as the interest rates on savings accounts are much higher than normal.
Lower Fees
Credit unions tend to have significantly lower fees across the board. Monthly maintenance fees, opening or closing account fees, and overdraft fees, are often minimal or non-existent with credit unions.
In many cases, opening a checking account with a credit union will cost you nothing.
Better Mortgage Accessibility
Credit unions can sometimes help members overcome barriers that might prevent them from obtaining a home loan. For example, if your credit history is lacking, your credit union might be willing to provide a loan where a bank turns you away.
This is just one aspect of the many relationship-building benefits that come with credit union membership. A credit union will also be more interested in helping you to navigate any difficulties that you may experience when paying off your loan.
Also, it helps to know that when you take out a mortgage with your credit union, that loan stays with them. When you take out a home loan through a bank, your loan is likely to be sold off to a larger lender, with interest proceeds going there instead.
With a credit union, you know that your money is going back into your local community.
Community Oriented
Credit unions are naturally community oriented. Because every credit union is essentially a cooperative, you’re actually an active part of a financial institution. Furthermore, taking into account common membership requirements, credit union members often live in the same community.
This is another reason why credit unions are increasingly popular as alternatives to banks, which rarely bring that sense of community and belonging.
Voting & Governance
Credit union membership means you get to actually have a say regarding how the institution is run. All members can vote on important decisions, including the selection of board members. Credit union members are all equal co-owners.
This is obviously in stark contrast to all traditional banks, which are run exclusively by owners and non-elected board members.
Variety of Service
While credit unions are often thought of as having less products compared to a bank, there actually may be a greater variety of services available. In addition to financial education and counseling, credit unions offer checking accounts, savings accounts, branches with other credit unions, as well as various loans and credit cards.
Many credit unions are focused on providing as much support to their members as possible, and regularly seek feedback on how to improve their services.
Insured Deposits
Just like with FDIC insurance at a bank, a credit union will have regulated deposit insurance. A federally insured credit union will be protected by the National Credit Union Administration, via the National Credit Union Share Insurance Fund. Some state credit unions are also insured by the same body, if not privately.
The NCUSIF is backed by the U.S. government and covers individual member deposits up to $250,000 at all federally insured credit unions.
See also: Best Nationwide Credit Unions of 2023
What to Consider Before Joining a Credit Union
We’ve looked at the many benefits of joining a credit union. It’s only fair to consider that there are some potential downsides, too. Here’s what you should be aware of if you’re considering credit union membership:
Exclusive Membership
Most credit unions are only open for those living or working within a specific community or profession. Although there are exceptions to this, it’s important to know that there may only be a handful of credit unions you can realistically join.
Limited Location Availability
Many credit unions are small institutions, with just one or two brick-and-mortar branches. If you need to conduct in-person business at your credit union, you may have to make a trip out of town. This could also narrow the pool of feasible credit unions you can join even smaller, especially if you like to bank in person.
Fewer ATMs
Unlike large banks, credit unions don’t have extensive ATM networks available. Instead, most credit unions will only have dedicated ATMs attached to a branch.
While you will still be able to use non-network ATMs to conduct basic banking transactions, you’ll be subject to fees for the service.
Limited Technology
One major downside of credit unions is that some of them are lacking in technology. When it comes to websites, mobile apps and online banking options, credit unions may often fall behind compared to big banks.
If online banking is a priority for you, make sure to look for a credit union with well developed online services.
Less Credit Card Options
While some big credit unions will do their best to compete with large banks, smaller credit unions are unlikely to have the same variety of credit cards available.
If you’re set on landing a credit line that comes with big rewards programs and sign-up bonuses, you might be disappointed with a credit union’s offerings.
Benefits of a Credit Union – FAQ
Can anyone join a credit union?
Credit unions are not exactly exclusive clubs, but in many cases there are certain requirements needed to become a member. Generally speaking, large credit unions operating several branches will be easier to join than smaller, localized ones.
Credit unions are designed to serve their communities. As a result, some are strictly for employees of a certain organization, while some are geared to anyone living or working in a designated community.
You can usethis website to find credit unions that are local to you, and find out which options you’ve got.
Is it better to keep my money in a credit union or a bank?
The answer depends on your own unique financial needs and priorities. While credit unions often have better rates for savings and loan products, banks don’t have membership exclusivity.
A bank may also just be a more convenient option for you, especially if you’re looking for specialized financial products or slick online banking services.
Are credit unions safe?
Yes. Storing your money in a credit union is just as safe as using a bank, provided your credit union is insured by the National Credit Union Administration. Don’t take it for granted that any credit union you join is suitably secured.
Bottom Line
Better rates on savings, loans and a personal touch are some of the biggest benefits to credit unions. However, as we’ve seen, there are potential downsides that could disrupt your plans of joining a credit union.
Before making any changes, be sure to research the credit unions in your area. Keep in mind that services and rates can vary widely between credit unions.
Once you’ve found a credit union you can join, you’ll want to compare rates, fees and other details to maximize the benefits.
A credit union is a nonprofit institution that’s owned by its members. Compared to a traditional bank, a credit union tends to offer more personalized service.
You can turn to a credit union for a variety of financial products, like checking and savings accounts, credit cards, car loans, and mortgages. Some regional and federal credit unions also offer wealth management services and other extras.
A typical credit union only accepts members who live in a specific region or work for an eligible employer. For example, they may require that you’re a resident of Atlanta, Georgia or work as a teacher.
The good news is some credit unions require less and make it easy for just about anyone to join. If you’d like to join a credit union but don’t want to worry about the strict membership requirements at most institutions, you’ve come to the right place.
38 Best Credit Unions Anyone Can Join
There are hundreds of credit unions that anyone can join, but we’ve done the heavy lifting and found the best ones for you. The credit unions below, which are overseen by the National Credit Union Administration (NCUA) may be an option for you, regardless of what you do for a living or where you’re located.
Just keep in mind that you may have to make a donation, join an organization, live in a certain state, or meet some other eligibility requirement. We encourage you to explore this lengthy to list of credit unions anyone can join so you can hone in on the ideal credit union for your unique situation.
1. Alliant Credit Union
Alliant Credit Union made its debut in 1935 to serve the employees of United Airlines. It stands out for it high-interest savings and checking accounts with low minimum opening deposits as well as excellent customer service.
You’ll also receive access to more than 80,000 free ATMs across the U.S. and get reimbursed up to $20 in out-of-network ATM charges per month. Since it only has two brick-and-mortar locations, you should feel comfortable with online banking. If you’d like to join Alliant Credit Union, make a $5 donation to Foster Care to Success.
2. Connexus Credit Union
Connexus Credit Union was founded in 1935 and has a widespread presence in Wisconsin as well as more than 54,000 ATMs across the country. It couldn’t be easier to join the credit union as all you have to do is pay a one-time $5 fee to the Connexus Association, which supports financial education through college scholarships.
As a member, you can open one of its three checking options with high APYs and a traditional savings account or one that’s specifically designed for the holidays.
3. Pentagon Federal Credit Union
Pentagon Federal Credit Union, or PenFed, was founded in 1935 as a credit union for military and civilian government. Today, this Virginia-based credit union has opened it doors to anyone as long as they open a savings account and deposit a minimum of $5. It offers two savings accounts, including the Regular Savings and Premium Online Savings.
In addition, you can find checking accounts, CDs, and money market accounts. Other products include Coverdell Education Savings Certificates, IRAs, credit cards, mortgages, home equity loans, and student loans. Plus, you can enjoy modern perks like mobile check deposits, online bill pay, and instant transfers.
4. First Tech Federal Credit Union
First Tech Federal Credit Union is headquartered in California. The credit union offers many benefits, such as excellent customer service, many branches throughout the U.S. and Puerto Rico, online banking, and mobile banking.
It also has the Dividend Rewards Checking Account, which gives you 1.00% APY on balances below $1,000. You don’t have to live in California to join as long as you donate to a nonprofit called the Financial Fitness Association.
5. Consumers Credit Union
Consumers Credit Union was established in 1951 as a local credit union. Based in Illinois, it’s one of the largest credit unions in the state with over 100,000 members and more than $1.2 billion in assets.
You can join it, even if you don’t live in Illinois. All you have to do is donate the $5 membership free to an affiliated nonprofit. You can open almost all of its accounts online, except for the checking accounts and IRAs. The credit union also offers a high-yield checking account that offers high interest if you meet certain criteria.
6. Langley Federal Credit Union
Langley Federal Credit Union is based in Virginia and made its inception in 1936. At that time, members of the National Advisory Committee for Aeronautics, the predecessor to NASA, chartered the credit union.
Today, Langley offers membership to anyone who pays a fee to support an important cause in Virginia and deposits at least $5 into a savings account. You can choose from a checking account without a monthly fee, a variety of no-fee savings accounts with competitive interest compounds monthly, and Visa Cards with cash back rewards.
7. Lake Michigan Credit Union
Lake Michigan Credit Union made its debut in 1933 by a group of teachers. Headquartered in Grand Rapids, Michigan, it has 51 branches in Michigan and southwest Florida. Since it’s part of the Allpoint ATM network, members can enjoy free access to more than 55,000 free ATM.
To join, donate $5 to the ALS Foundation and deposit $5 into a Member Savings account. Once you do, you can earn perks through the MORE rewards program and redeem them for complimentary checks and free out-of-network ATM transactions.
You may also open the free, no frills Max Checking account. Note that the Member Savings account, which you must open to become a member, requires a minimum daily balance of $300 or you’ll be charged a $5 monthly fee.
8. Lafayette Federal Credit Union
Lafayette Federal Credit Union was founded in 1935 as an alternative to traditional banks. It offers numerous perks, like no minimum balance requirement or monthly maintenance fees, online banking, mobile deposits, free direct deposit, and special discounts.
You can join it if you live, work, worship, or attend school in Washington D.C. If you live outside the D.C. area, you may still become a member as long as you invest in a lifetime Home Ownership Financial Literacy Council (HOFLC) membership for only $10. This nonprofit focuses on helping consumers navigate the path to homeownership.
9. Affinity Plus Federal Credit Union
Affinity Plus Federal Credit Union has 26 branch locations across Minnesota. APFCU offers MyPlus Rewards that gives you points if you keep a certain amount of money in your bank account or use its debit or credit card.
To be eligible to join, all you have to do is donate $25 to the Affinity Plus Foundation and open a basic savings account. If you live and work in Minnesota or have a family member in the state, there are other ways to become a member.
10. Chevron Credit Union
Chevron Credit Union has been around since 1935 and has 19 branches that span six states, including California, Louisiana, Mississippi, Texas, Utah and Virginia. It operates under two brands: Chevron Federal Credit Union and Spectrum Credit Union.
To become a member, join one of its nonprofit partner organizations, such as the Contra Costa County Historical Society. You’ll also need to deposit $25 into a primary savings account and maintain a $25 minimum balance.
Chevron also offers a second chance checking account called New Solutions for those who need help rebuilding their banking history.
11. Ascend Credit Union
Since its inception in 1951, Ascend Credit Union has offered a variety of products, like checking and savings accounts, a money market account, Christmas Club account, youth accounts, credit cards, and loans.
If you’re interested in these services, join The Nature Conservancy, Tennessee Chapter and you’ll be eligible automatically. Note that there is a one-time fee of $25.
12. Hope Credit Union
Hope Credit Union is a black-owned credit union that was organized in 1995 by the Anderson United Methodist Church in Mississippi. You can join if you pay a $10 membership fee and show a foreign passport, permanent resident card, or Matricula Consular. Plus, you may use an ITIN number instead of a Social Security number.
Hope Credit Union provides a number of personal bank accounts, business banking accounts, and transformational deposits. With its transformational deposits, you can participate in socially responsible investing.
13. Boeing Employees Credit Union
Boeing Employees Credit Union, or BECU, was established in 1935 for Boeing employees and currently caters to more than 1 million members. But despite its name, you don’t have to work at Boeing to join.
Its products and services are available to you if you become a member or donor to the KEXP, which is a nonprofit art organization or the Sea Hawkers Central Council. The most noteworthy benefit of joining is the first-time homebuyer grant in which you can receive $7,500 toward your down payment and closing costs.
14. Hiway Credit Union
Hiway Credit Union made its debut in 1931 to serve employees of the Minnesota Department of Transportation. It offers a free checking account with no monthly fee or minimum balance requirements, a free money market account with a $500 minimum deposit, credit cards, and loans.
You can qualify for a Hiway Federal Credit Union membership if you donate to the Minnesota Recreation and Park Foundation for $10 per year or the Association of the U.S. Army, which costs $40 for two years.
15. GreenState Credit Union
GreenState Credit Union was founded in 1938. It provides its members with personal accounts, business accounts, credit cards, loans insurance, wealth management services, and more.
GreenState was named one of the fastest growing credit unions in 2021. As long as you live or work in the state of Iowa, you can become a member and take advantage of its services without any issues.
16. Cascade Credit Union
Cascade Credit Union made its debut in 1952 to serve employees of the Cascade Division of the Great Northern Railway. Today, it’s open to many people and offers great perks like members-only sweepstakes, competitive rates, online banking tools, financial counseling, and group insurance benefits.
If you’d like to join, simply become a member of the Great Northern & Cascade Railway Association (GNCR) and pay an annual membership cost of $40. The credit union can help you fill out your application online or in-person at a local branch.
17. Wildfire Credit Union
Wildfire Credit Union began in 1937 as Saginaw Telephone Employees Credit Union, its original credit union name. Its first location was in the basement of the home of Hank Kosk, the credit union’s treasurer.
After some office upgrades, the credit union opened the doors to its current location on Bay Road in Saginaw and merged with Flint Telephone Employees Credit Union that same year. Today, Wildfire Credit Union offers several deposit accounts as well as personal banking and business banking services. You can join if you live, work, worship, or attend school in Michigan.
18. Nextmark Credit Union
Nextmark Credit Union made its debut in 1958. Its offerings include personal and business checking, home equity loans, personal loans, credit cards, gift cards, and more.
To join, you must live in a qualifying county in Virginia or make a donation to Herndon Elementary PTA, a Title I school.
19. Technology Credit Union
Technology Credit Union, or Tech CU, was established in 1960. It’s based in Silicon Valley and provides its members with no shortage of benefits. These include competitive rates, online banking, access to fee-free ATMs, free credit score monitoring, conference room space, and easy online appointment booking. To become a member, join Financial Fitness Association for only $8.
20. Veridian Credit Union
Veridian Credit Union was established in 1934. Most of its members are those who live or work in Iowa or certain counties of Nebraska. However, it’s open to anyone who is a registered user of Dwolla, a financial technology company. This means you can join as long as you sign up for a personal account at Dwolla.
You’ll also need to open a savings account and deposit at least $5. If you’re already a member of a credit union or bank but would like to switch to Veridian Credit Union, the switch kit may be helpful.
21. Harborstone Credit Union
Harborstone Credit Union’s roots date back to 1955, when it was known as McChord Federal Credit Union and served airmen on the McChord Air Force Base. In 1996, the credit union expanded its membership to anyone in the state of Washington and changed its name as a result.
As long as you live, work, or worship in Washington, you may join Harborstone Credit Union and enjoy a variety of financial products and digital tools.
22. NASA Federal Credit Union
NASA Federal Credit Union began in 1949 to serve NASA employees. Since then, it’s grown to more than 177,000 members. While the credit union is headquartered in Upper Marlboro, Massachusetts, there are 12 branches in Maryland, Virginia, and Washington, DC.
Its product lineup includes a simple checking account with no minimum opening deposit, a savings account with a great rate, and several CDs. You can also monitor your credit score and make deposits with the mobile app. If you don’t work for NASA, you can still join. Simply sign up for a one-year membership at the National Space Society (NSS).
Hanscom Federal Credit Union opened in 1953. The credit union has over 20 branches in and around Boston as well as one in McLean, Virginia. It offers fee-free checking accounts, savings accounts with rewards, credit cards, and loans.
To join, you’ll need to support one of its partner organizations, such as the Burlington Players, a volunteer theater group. In addition, you’ll be required to deposit $25 into a free primary savings account.
24. Pen Air Federal Credit Union
Pen Air Federal Credit Union was founded in 1936 to support civil service employees of Naval Air Station Pensacola. It has 16 locations in northwest Florida and southeast Alabama. You may be surprised to learn that you don’t have to be an active duty or retired military member to join.
You’ll be able to take advantage of Pen Air Federal Credit Union if you become a member of the Friends of the Navy-Marine Corps Relief Society and deposit a minimum of $25 into a savings account. As a member, you can enjoy the Pen Air Platinum Mastercard, Share Savings account with the Round It program, and more.
25. State Department Federal Credit Union
State Department Federal Credit Union was founded in 1935. To join, you can become a member of the American Consumer Council for $8. This is a non-profit organization with a focus on consumer education and financial literacy.
The State Department Credit Union offers a long list of products and services, including basic, advantage, and privilege checking, a money market account, share certificate accounts, individual retirement accounts (IRAs), credit cards, and loans.
26. United Nations Federal Credit Union
United Nations Credit Union made its debut in 1947. As long as you join the United Nations Association of the United States of America, you can become a member.
UNFCU has a vast product lineup that includes a checking account, membership savings account, credit cards, debit cards, and loans, like car loans and debt consolidation loans.
Other membership perks include loyalty rewards, credit card rewards, and the member referral program.
27. Premier Members Credit Union
Premier Members Credit Union was established in 1959 for members of the Boulder Valley School District. You’re eligible to join if you make a donation to Impact on Education, a charity in the Boulder Valley School District, and open an online savings account or youth savings account.
As a member, you can expect perks, such as high interest rates on checking accounts, no monthly service fee, no overdraft fees, and free overdraft protection. The credit union also offers an extensive network of branches and ATMs for your convenience.
28. SRI Federal Credit Union
SRI Federal Credit Union is headquartered in Menlo Park, California. It was founded in 1957 and offers membership to anyone who joins the Financial Fitness Association for $8 per year.
The credit union’s account offerings include a checking and savings account, money market account, IRA, health savings account, and youth, teen, and gradate accounts.
29. United States Senate Federal Credit Union
United States Senate Federal Credit Union has been around since 1935. Its mission is to “improve the financial wellness of members throughout all stages and circumstances of life.” Its products are similar to what most credit unions offer.
As a member, you can enjoy access to a number of checking and credit union savings accounts, mortgage loans, personal loans, auto loans, Visa debit cards, and business advisory services. To join, you’ll need to become a member of the U.S. Capitol Historical Society for $65.
30. Wings Financial Credit Union
Wings Financial Credit Union was founded in 1938 by seven employees from Northwest Airlines. To date, it serves more than 320,000 members with more than $7.5 billion in assets. You can join if you donate $5 to the Wings Financial Foundation, even if you don’t work in the aviation industry.
There are no fees on its basic banking accounts, including its checking and savings accounts, a money market account, and CDs. Its high yield savings and checking accounts offer competitive rates to help you grow your money.
31. Skyward Credit Union
Skyward Credit Union was chartered in 1941. It offers a share savings account with competitive rates, an aim higher checking account with no monthly fees or minimum balance requirements, affordable mortgage and home equity loans.
It also offers online banking, a variety of insurance products, and access to over 30,000 surcharge-free ATMs. Like most credit unions require membership, so does this one. To become a member, join the Kansas Aviation Museum.
32. San Diego County Credit Union
San Diego County Credit Union has been around since 1938 and has over 430,000 credit union members. It’s considered the largest locally owned financial intuition in San Diego.
As a member, you can enjoy a free checking account, secured and unsecured credit cards, a wide range of account options with no service fees, and access to over 30,000 ATMs without ATM fees. To join San Diego County Credit Union, become a member of the Financial Fitness Association.
33. Bellco Credit Union
Bellco Credit Union is a Denver-based credit union that opened its doors in 1936. You can join it even if you don’t live in Colorado as long as you donate at least $10 to the Bellco Foundation, pay a one-time $5 membership fee, and deposit at least $25 in a savings account.
Once you do, you’ll have access to several noteworthy products, like the Boost Interest Checking account, which offers a competitive interest rate, the Premier Money Market Account, and two, no-fee credit cards.
34. Bethpage Federal Credit Union
Bethpage Federal Credit Union was founded in 1941 and currently has over 30 branches across Long Island and New York City. It has a reputation for competitive rates on it money market accounts and certificates of deposit (CDs).
The credit union also offers three checking accounts, a few savings accounts, retirement planning services, IRAs, insurance, and more. You don’t have to live in New York to join if you open a $5 savings account. As a member, you may meet with credit union staff virtually and bank on the go with a handy mobile app.
35. First South Financial Credit Union
First South Financial Credit Union opened its doors in 1957 to serve those on the Millington base. Since then, it has become of the safest financial institutions in the U.S., as stated by independent rating agencies. While the credit union has locations throughout Tennessee and Mississippi, its online banking services make it a suitable option if you live elsewhere.
Like other credit unions, it offers a full suite of checking, savings, CDs, and IRA accounts. To join, become a member of the Courage Thru Cancer Association, which supports St. Jude Children’s Research Hospital.
36. Dow Credit Union
Dow Credit Union was founded in 1937 in Midland, Michigan. It provides numerous products, including checking and savings accounts, certificates of deposit (CDs), HSAs, deposit trust accounts, and loans.
Fortunately, you don’t have to work at Dow Chemical to take advantage of them. To join, make a $10 donation to the Dow Chemical Employees’ Credit Union Endowed Scholarship Fund.
37. Blue Federal Credit Union
Blue Federal Credit Union was chartered in 1951 as Warren Federal Credit Union. If you’re looking for a high-yield checking account, you’ll appreciate its Blue Extreme Checking Account with no minimum opening deposit or monthly service fees.
Other perks include a tiered membership rewards program and round-the-clock customer service. The easiest way to become a member is to donate $5 to the Blue Foundation and open a Membership Share Savings Account with $5.
38. Digital Federal Credit Union
Digital Federal Credit Union (DCU), based in Marlborough, Massachusetts, was established in 1979. Today, it is known for its comprehensive range of financial products that includes checking and savings accounts, auto loans, mortgages, personal loans, credit cards, and wealth management services.
Perhaps one of DCU’s standout features is its commitment to digital banking, offering robust online and mobile platforms that compete with larger, nationwide banks. This makes DCU a fitting choice for those who prefer online banking, no matter where they live.
Membership is open to those who are a part of participating organizations or live, work, worship, or attend school in eligible communities. If you don’t fit those criteria, you can still join by becoming a member of a participating nonprofit organization, such as Reach Out for Schools, which requires a nominal donation.
See also: Best Nationwide Credit Unions of 2023
Bottom Line
Not all credit unions are created equal. Some have strict membership criteria, while others are more flexible. Before you join a credit union (or several credit unions) on this list, be sure to consider numerous factors.
You’ll want to look at eligibility requirements, branch location, monthly maintenance fees, accounts offered, interest rates, mobile banking, digital banking, reputation, and customer service. Best of luck as you explore the best credit unions and search for the perfect credit union.
Frequently Asked Questions
Can civilians join Navy Federal Credit Union?
Yes, civilians can join the Navy Federal Credit Union (NFCU), the largest credit union in the U.S. However, this is limited to immediate family members of service members in all branches of the armed forces. This broad eligibility criteria is one of the reasons why NFCU has grown to be the largest credit union in the country.
Can anyone join American Airlines Credit Union?
No, not anyone can join the American Airlines Credit Union. Membership is limited to those who work in the air transportation industry, including airlines, airports, and related businesses, as well as their family members. While this broadens the scope beyond just American Airlines employees, it still doesn’t include everyone.