Compare Credit Unions, Get Ratings & Reviews

If you need to set up a deposit account or take out a loan, you’ll need to decide whether to use a bank or a credit union. Both institutions provide consumers with deposit accounts and loans, among other services. And with few exceptions, both banks and credit unions provide federal insurance coverage for deposit accounts up to $250,000 per depositor, per institution.

On the surface, banks and credit unions look pretty similar. So what are the major differences?

Mission: Banks are profit-making enterprises. Just like any other corporation, banks use those profits to strengthen the company, provide bonuses to executives, and pay dividends to the shareholders. Credit unions, on the other hand, are not-for-profit organizations. The focus of a credit union is not on maximizing profit, but on supporting the community by providing members with the best possible products and services at the lowest possible cost. Any surplus income earned is returned to the members in the form of dividends.
Ownership: Banks are owned by shareholders, while credit unions are member-owned. Credit union membership is made up of the credit union’s own depositors and borrowers, and is based on a community of some type, such as a common location, profession, church, club, or military affiliation.
Eligibility: Banks are open to all customers, while credit unions are chartered to serve particular communities, and are required by law to restrict membership to those communities.

Questions & Answers

Comparing credit unions can be tough. But you've got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not the financial institution's responsibility to ensure all posts and questions are answered.

Upvotes

What are the best credit unions?

Alexandra Barring, Banking Moderator

The best credit unions depend on your specific needs and priorities. However, there are some highly-rated options if you're looking for a checking or savings account. Navy Federal Credit Union is a great option to consider if you're comfortable with a large institution.

There are other options to consider, including Together Credit Union, State Farm Federal Credit Union, Financial Resources Federal Credit Union and American Airlines Federal Credit Union that provide great services to their members.

Before making a decision, be sure to take a look at the best options available and choose the one that best matches your needs and goals.

Upvotes

What are the benefits of a credit union?

Ramses Delgado, Banking Moderator

Some of the credit union benefits include lower fees, higher APYs, lower APRs, better customer service, and a democratic structure. Here's a breakdown of the benefits:

Lower fees: Credit unions are non-profit cooperatives owned by their members. This means their focus isn't on maximizing profits for shareholders, but rather on serving their members.
Higher APYs: Because they're not profit-driven, credit unions can offer higher yields on savings accounts and certificates of deposit (CDs) compared...

Upvotes

Which are the best credit unions in Washington state?

Alexandra Barring, Banking Moderator

The best credit union in the state of Washington depends on your specific needs and priorities. However, there are some highly-rated options if you're looking for a checking or savings account. Navy Federal Credit Union is a great option to consider if you're comfortable with a national credit union.

Navy Federal Credit Union is a strong choice, but Washington also boasts excellent regional options like State Farm Federal Credit Union and Great NorthWest Federal Credit Union that provide great services to their members.

Before...

Upvotes

Which are the best credit unions in Virginia?

Alexandra Barring, Banking Moderator

The best credit union in Virginia depends on your specific needs and priorities. However, there are some highly-rated options if you're looking for a checking or savings account. RVA Financial is a great option to consider.

There are many other credit unions worth exploring, such as Navy Federal Credit Union, or Together Credit Union. Remember, each credit union has eligibility criteria you'll need to meet to join.

Before making a decision, take a look at the best credit union...

Upvotes

What are the best credit unions for credit-builder loans?

Grace Enfield, Content Writer

The best credit unions for credit-builder loans are Alltru Credit Union and Digital Federal Credit Union because of their low APRs and affordable monthly payments. Alltru offers 50% of all the interest paid on the loan back, while an account through Digital Federal earns dividends. You must be a member to get a credit-builder loan from either of these credit unions, though.

Best Credit Unions for Credit-Builder Loans

Alltru Credit Union

Alltru offers 12-month credit-builder loans of $300 to $1,000...

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Credit Unions

Together Credit Union

Navy Federal Credit Union

State Farm Federal Credit Union

American Airlines Federal Credit Union

GE Credit Union

Honda Federal Credit Union

Corporate America Family Credit Union

Andigo Credit Union

OE Federal Credit union

PARDA Federal Credit Union

How Are Credit Unions Different from Banks?

Questions & Answers

What are the best credit unions?

What are the benefits of a credit union?

Which are the best credit unions in Washington state?

Which are the best credit unions in Virginia?

What are the best credit unions for credit-builder loans?

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Important Disclosures