The best 5 credit unions in 2024

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Credit unions have a reputation for providing more personalized services. These not-for-profit organizations focus on serving the needs of their members rather than generating profit for shareholders.

Credit unions operate as cooperatives, owned and controlled by their members. They offer various services, including savings and checking accounts, loans, mortgages, and credit cards.

While the membership aspect of credit unions seems restrictive, many come with broad and flexible requirements that make them available to anyone.

Credit unions often pass their earnings to members through lower rates on loans and higher rates on savings accounts. If you’re looking for a more personalized banking experience, credit unions prioritize financial education and building relationships with their members.

Here are our top picks for the best credit unions. All come with robust product offerings, competitive rates, educational tools, and NCUA insurance.

1. PenFed Credit Union

Pentagon Federal Credit Union (PenFed) is the second-largest federal credit union, with almost 3 million members. With its roots in serving military personnel and their families, PenFed has expanded its membership.

Today, anyone can become a PenFed member. Open a savings account, deposit at least $5, and you’re all set.

Here’s a breakdown of some of PenFed’s accounts. 

2. Alliant Credit Union

Alliant is a major player in the credit union space, with more than 800,000 members nationwide.

This credit union offers bank accounts, loans, investing services, insurance products, and a credit card. The online platform and mobile banking app make it easy to keep tabs on your money 24/7. Plus, you can withdraw funds at over 80,000 fee-free ATMs nationwide.

Here’s a look at some of Alliant’s accounts. 

Membership is open to current or retired employees of partnering organizations along with spouses or immediate family members of current Alliant account holders. You're also eligible for membership if you work or live in select communities near the Corporate Headquarters in Chicago. Otherwise, you can join by becoming a Foster Care to Success member and paying a one-time $5 membership fee.

3. Consumers Credit Union

Consumers Credit Union is a smaller credit union boasting plenty of banking options. This includes checking accounts, savings accounts, health savings accounts, CDs, and more.

Interest rates are competitive. For example, you can earn up to 5.00% with a Consumers’ Rewards Checking account. Accounts also offer access to over 30,000 fee-free ATMs and unlimited out-of-network ATM fee reimbursements.

You can become a member by joining the Consumers Cooperative Association. The initial fee is just $5, reimbursable by the credit union. 

4. Connexus Credit Union

Connexus Credit Union operates primarily in Wisconsin but serves more than 460,000 members across the U.S. with its digital banking platform. You can access many different services to meet your financial needs, from bank accounts to credit cards to auto loans.

Here’s a look at some of Connexus’ featured accounts. 

There are physical branches available, though they’re mainly in Wisconsin. There are also over

5,000 shared branches throughout the U.S. for in-person banking help. You can become a member by joining the Connexus Association for a one-time fee of $5.

5. Navy Federal Credit Union

Navy Federal Credit Union is the largest credit union in the world, with over 12 million members. It offers financial products and services for members of the armed forces, veterans, and their relatives.

Many of the checking and savings accounts skip the monthly maintenance fees. Plus, interest rates on credit cards, auto loans, and mortgages are some of the lowest in the industry.

With Navy Federal, you can access over 300 physical branches and 30,000 in-network ATMs. There are several checking accounts and other bank accounts to choose from, but here’s a look at some featured options. 

What’s the difference between a credit union and a bank?

The key difference between a credit union and a bank is the ownership structure.

“Banks are owned by shareholders, while a credit union is owned by the members who appoint heads to run the union,” says Mark Stewart, a certified public accountant at Step by Step Business. “Banks have a variety of users who are usually not connected, while credit unions comprise members who share a common characteristic of location or employment.”

Another key distinction is the focus on customer service. Credit unions take a community-oriented approach, supporting local initiatives and investing in the communities they serve.

While still providing customer service, banks are more profit-driven and may focus on maximizing shareholder value. They may have a broader range of services and more extensive branch networks but may not always offer the same competitive interest rates as credit unions.

Still, deciding between the two isn’t always so cut and dry. Sometimes, having accounts at both may be in your best interest.

“There's no rule against having accounts at both a bank and a credit union, and doing so can allow you to take advantage of the benefits each has to offer,” says Sherman Standberry, a certified public accountant at My CPA Coach. “You might choose to have a checking account with a bank for convenience and a savings account with a credit union to benefit from higher interest rates.”

What to consider when choosing a credit union

Before applying for a new account with a credit union, keep these factors in mind:

• Membership requirements: Credit unions have specific eligibility criteria based on your location, employer, or affiliation with particular organizations.
• Services: Look for a credit union offering various financial products. This helps ensure your current and future financial needs will be met.
• Access: An extensive branch and ATM network means easier access to in-person services and fee-free transactions.
• Online and mobile banking: Look for credit unions with secure digital banking options, allowing you to access your account anytime, anywhere.
• Customer service: Read reviews to get a feel for the credit union's level of customer service. Make sure the customer support hours work for you.

The bottom line

Ultimately, the best credit union for you depends on your specific needs. Look for a credit union with a stellar reputation, robust services, and competitive rates to get you one step closer to your financial goals. Before opening an account, consider what each credit union offers to make an informed decision.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.