Credit unions anyone can join

3 Credit Unions You Can Join Online

Equity, Diversity, And Inclusion: Community Development Credit Unions (CDCUs) target communities that are underserved by other financial institutions, which frequently overlap with minority populations. CDCUs fight inequality through high-impact products such as payday lending alternatives, microloans, credit builder loans and financial counseling. There are more than 300 CDCUs serving over 10 million members, concentrated primarily in locations where poverty rates exceed 20 percent and/or median incomes are below 80 percent. All credit unions count at least some low-income communities among their membership, and many have followed the lead of CDCUs by adopting more inclusive policies and products.

Credit Union Co-ops

As not-for-profit financial cooperatives, credit unions exist to serve the financial needs of members-owners, who benefit from reduced fees, higher interest on savings, and lower loan rates. Anyone can join a credit union as long as they are within the institution’s field of membership. This common bond between members can be an employer, geographic location, or membership in a group and is often extended to family members. By law, credit unions are limited in their business lending. However, credit unions designated as “low income” by the National Credit Union Administration (NCUA) may receive approval to exceed that cap for loans that generate economic growth and opportunities within low-income urban, rural and reservation-based communities.

WHAT IS A CREDIT UNION CO-OP?

A credit union co-op is an organization providing transactional, protective and loan products to its members, who own and govern the association.

While the co-op typically offers the same services as traditional banks, several characteristics distinguish it. For example, publicly traded banks are usually national and exist to create value for their investors. These stakeholders generally vote in proportion to their ownership — the more equity they have, the more power they can wield. Conversely, credit unions are frequently local, nonprofit agencies giving each member one vote. Participants use this voice to choose the organization’s leadership and influence its operation.

HOW DOES A CREDIT UNION CO-OP WORK?

Members who meet the eligibility requirements voluntarily join a credit union cooperative by placing equity in the organization. This is typically done by depositing and maintaining a minimum sum, called a “share.” Members can take advantage of credit union benefits as soon as they’ve joined, including attending membership meetings and casting their vote. As long as a member owns a share of the co-op, they can remain a member, even if their eligibility status changes after joining.

Like a bank, the co-op uses these share deposits to extend credit to other members and charges interest and fees to make money. The organization is exempt from paying federal taxes on this income as a nonprofit, keeping more of what the credit union earns. The co-op funnels this money directly back into improving member services and benefits, such as no-fee checking accounts.

By offering these perks, credit unions foster competition in their local economies. This competition can even benefit nonmembers by encouraging other financial institutions to reduce their fees to attract customers. Many credit unions also belong to Shared Branching and ATM networks, allowing their members to get services and conduct transactions at other participating co-ops and over 30,000 ATMs.

BENEFITS OF CREDIT UNION CO-OPS

Members join credit union co-ops for the many advantages they offer.

MEMBER-FOCUSED MISSION

The primary benefit of belonging to a credit union co-op is the organization’s priority — the financial well-being of its members. The cooperative doesn’t have to concentrate on profit-making, so it can better emphasize service and value. This enables the co-op to deliver a more personalized experience and products that its members want and need at lower costs.

Although they may be smaller than national banks, credit union co-ops still provide valuable services and tools their members expect. Many offer electronic solutions, cash-back credit card options and fringe benefits like discounts on tax filing software. They also create free financial education resources to improve their members’ overall economic health.

SHARED COMMUNITY VALUES

Since credit union co-ops operate more locally, they are run by people from the same communities their members live and work in. The assets stay local, translating into substantial influence over the quality of life in nearby neighborhoods.

Today’s credit unions provide support for numerous community initiatives. Branches may sponsor local youth sports teams, food and clothing drives, or other charitable fundraisers. Many also support broader-reach efforts like Credit Unions For Kids, benefitting children’s hospitals.

EXAMPLES OF CREDIT UNION CO-OPS

There are numerous credit union co-ops throughout the country, including:

• Navy Federal Credit Union
• Alliant Credit Union
• PenFed Credit Union
• Consumers Credit Union
• The Boeing Employees’ Credit Union (BECU)
• America First Credit Union

Many states also have dedicated State Employees’ Credit Unions (SECU) serving their workforces. North Carolina’s SECU is one of the largest, with over $50 billion in assets and more than 2.5 million members. By contrast, the Pennsylvania State Employees Credit Union (PSECU) manages between $7 and $8 billion and serves just under 500,000 members.

KEY FACTS ABOUT CREDIT UNION CO-OPS

Interesting facts about credit unions include:

• Canadian journalist Alphonse Desjardin began North America’s first credit union in Levis, Quebec, with a deposit of 10 cents.
• The first credit union cooperative in the United States opened in Manchester, New Hampshire, in 1909.
• Credit unions originated on a large scale with President Roosevelt’s signing of the Federal Credit Union Act in 1934 to encourage thriftiness during the Great Depression.
• Credit union co-ops have their own deposit insurance called the National Credit Union Share Insurance Fund, overseen by the National Credit Union Administration (NCUA).
• The World Council of Credit Unions helps these financial cooperatives celebrate International Credit Union Day on the third Thursday in October.
• The almost 5,000 active credit unions in the U.S. today hold over $2 trillion in assets and serve over 132 million members.
• The Navy Federal Credit Union is the nation’s largest, with over 11 million members.

The ABCs of Credit Union Co-op Impact

Access: Sharing resources to serve members—rather than amassing them to benefit shareholders—allows credit unions to punch above their weight when it comes to providing members access to financial services. While credit unions range in asset size from more than $100 billion to less than $10 million, on average they have less than 1/10th the total assets of traditional financial institutions and a median size of less than $35.77 million each. Still, these cooperative financial institutions not only deliver convenience, but they also deliver direct financial benefits to members in the form of lower fees and interest rates on loans than their investor-owned counterparts. The financial benefit of these differences totals over $13.8 billion per year, or about $118 per member or $248 per household.

Business Sustainability: As lenders, both credit unions and banks confront risk on a daily basis. However, aggregate data from their insurance funds show that these two forms of financial institutions approach risk very differently. During the financial crisis of 2008-2009, the banking sector’s FDIC insurance fund plummeted. In contrast, the credit union sector’s National Credit Union Administration (NCUA) insurance fund held steady throughout the recession, providing strength and stability amid tremendous financial upheaval. During the same time, credit unions experienced far fewer loan delinquencies than banks did.

Community Commitment: Many credit unions focus on engaging vulnerable populations within their membership, such as immigrants or young people, helping them enter the mainstream economy and achieve their personal financial goals. Both the individual and the community benefit from the trust credit unions build by being local institutions driven by member services rather than short-term profit. These benefits range from higher home ownership rates for lower-income credit union members to stronger credit scores for individuals enrolled in a credit builder program. Almost all credit unions o er tools and resources to help their members navigate financial challenges. And at the state and national levels, credit unions advocate for policies that protect all consumers.

Democratic Governance And Empowerment: Because credit union members elect their board directors, leadership is responsive to their needs. For many employment-based credit unions, this means offering branch hours before and after the typical workday. A credit union serving California teachers o ers a credit card with the option to skip a payment during the summer when funds are scarce; zero-interest loans to help teachers purchase school supplies; and special low-down payment, and low-fee mortgages. Another serving active duty service member provides comprehensive online services, branches in eleven countries and support for members navigating deployment or reentry.

Equity, Diversity, And Inclusion: Community Development Credit Unions (CDCUs) target communities that are underserved by other financial institutions, which frequently overlap with minority populations. CDCUs fight inequality through high-impact products such as payday lending alternatives, microloans, credit builder loans and financial counseling. There are more than 300 CDCUs serving over 10 million members, concentrated primarily in locations where poverty rates exceed 20 percent and/or median incomes are below 80 percent. All credit unions count at least some low-income communities among their membership, and many have followed the lead of CDCUs by adopting more inclusive policies and products.

Financial Security And Investment: By emphasizing long-term member interests, credit unions create stability that benefits all employees. Credit unions hire almost twice the number of employees per $1 million of assets than banks,—partly because they tend to be smaller, but also because of their higher level of customer service. The CEO compensation package at credit unions, too, contributes to stability for employees and financial security for members. While there is no statistical difference between credit unions and banks in terms of either CEO base pay or retirement income, performance-based income is five times as high in banking. “Other” income, too— like perks, club dues, etc.—was three times as high for bank CEOs. There is substantial evidence that such performance-based incentives contributed to the extreme risk-taking and unethical behavior that led to the financial crisis of 2008-2009.

Growth: Credit unions boast virtually the same yield on total assets as the banking sector and a similar net worth (the percentage of funds that stay with the institution—held in reserve for emergencies). Yet the net income for the sector is consistently 20- 30 percent below that of banks. Where does the extra money go? In the banking sector, profits go to shareholders. In credit unions, these “excess” funds are instead returned to local members in the form of higher rates on savings, lower rates on loans, and a more comprehensive and inclusive array of services. All of these factors contribute to the role of credit unions as anchors of economic growth.

Case Study

DC Credit Union: A Powerful Model For Growth and Inclusivity

DC Credit Union (DCCU) leadership believes “financial equity is a right, not a privilege,” and its customer services, financial products and community relations put that belief into practice. First established to serve a largely low- and middle-income African-American city government workforce, the cooperative took a big step toward focusing on financial inclusivity when it was asked by regulators to take over the charter of a small, struggling Latino-based credit union. Washington, DC is a city of disparities. Its expansive public spaces, ornate buildings and cultural treasures mask income disparities and pockets of deep poverty. DC is home to 20 percent more “unbanked” residents than the national average.

Nationally, the median family wealth for white families is ten times more than African-Americans families and eight times more than Hispanic families. With a membership made up of people of color, DCCU was motivated to bring underserved communities into the financial mainstream. DCCU meets its members where they are. Branch hours are designed to accommodate the work schedules of members and include bi-lingual stain primarily Spanish-speaking areas. The credit union has accounts that do not require social security numbers, allowing undocumented immigrants and minors without responsible adults to act as account custodians to access financial products and services.

Working with the Government of the District of Columbia, DCCU provides all participants in the District’s youth summer employment program with automatic direct deposit into their own non-custodial accounts. The credit union couples access to financial products with education resources.

>Participants in the summer youth employment program receive education in basic budgeting. Credit union members have access to guides and classes on topics like rebuilding credit, saving for a major purchase and fraud protection. Dedicated sta help participants access opportunities like free tax preparation services or navigate the unfamiliar world of finance. Recognizing that members may not have collateralizable assets, DCCU has partnered with the city, local nonprofits and religious institutions to o er a variety of unsecured loans.

These include “citizenship” loans to help front the costs of legal services for immigrants working with approved partner nonprofits, seasonal loans for faith-based neighborhood civic clubs, and loans to cover the down payment required on home purchases. With $65 million in assets and 11,359 members, DC Credit Union punches above its weight by responding to the needs of its members, maintaining close ties with city and community institutions, and providing underserved communities with opportunities through access to financial services.

CREATE A STRONGER COMMUNITY WITH NCBA CLUSA

We’ve provided educational resources and support to co-ops for over 100 years and have advocated worldwide for cooperative business organizations since 1953. Our team of co-op experts collaborates with leaders and the public to build inclusive communities through collective activities.

3 Credit Unions You Can Join Online

Ebony Howard is a certified public accountant and a QuickBooks ProAdvisor tax expert. She has been in the accounting, audit, and tax profession for more than 13 years, working with individuals and a variety of companies in the health care, banking, and accounting industries.

Credit unions have a reputation for offering great rates on loans and savings accounts while keeping fees low. Ideally, you can find excellent customer service and banking products in your area. But you might need more features than what is available at local credit unions—or there might not be any credit unions nearby.

Fortunately, you can join several credit unions online and enjoy the same great benefits.​

Note

To join a credit union, you need to qualify by meeting specific requirements, and that’s relatively easy for most people.

The credit unions shown here are easy to qualify for, they allow relatively small initial deposits, they’re federally insured, and you can join online—whenever and wherever you prefer. Once you’re a member, you can open checking and savings accounts, apply for loans online, and use other credit union services.

Credit Union Membership

First, a word about “membership.” Credit union customers are co-owners of the institution with voting rights on issues that influence the credit union’s direction. Since credit unions are not-for-profit organizations that don’t seek to produce profits for outside shareholders, fees and rates are typically reasonable.

Note

To meet the requirements of the “field of membership,” you must share a common bond with other credit union members.

To join any credit union, whether online or in-person, you need to meet specific criteria, such as having something in common with other members:

• The industry you work in
• The company you work for
• The geographic area you live or work in
• Your religious affiliations
• Membership in certain organizations
• Family members who are current members at a credit union

You can complete the membership requirements for many credit unions online. Those institutions might serve customers nationally, or they may operate primarily in small areas. Either way, the membership rules work the same way.

Requirements To Join Online

If you’re wondering how you fall into the same group as others who don’t live anywhere near you—and you might not have anything in common with—the solution is typically joining a group.

At the credit unions below, joining a nonprofit organization or making a small contribution to selected causes is all that’s required for eligibility.

Join Online and Bank Locally

Some people prefer to handle almost all of their banking needs without setting foot in a branch. However, you can still work with a live teller after joining an online credit union. You can make deposits and withdrawals, get official checks, and make loan payments at local credit union branches.

Note

Credit unions that participate in the shared branching network allow you to visit branches of other credit unions to handle tasks in your online accounts, and there are thousands of locations nationwide.

Here are three credit unions that are easy to join online.

Alliant Credit Union

Alliant Credit Union is one of the largest credit unions in the U.S. based on assets. Headquartered in Chicago, Illinois, Alliant is available to individuals who live in surrounding areas, work for or belong to specific organizations, or have family members who are Alliant members. Additional highlights:

• Easy membership: Anybody who becomes a member of Foster Care to Success (FCS) by donating $10 or more can apply to join Alliant. FCS is a nonprofit organization that helps individuals as they leave the foster care system.
• 24/7 customer service: In addition to the app and online service options, you can call Alliant’s customer service department at any time for assistance with your accounts.
• High-yield savings: Alliant’s High-Rate Savings account is competitive with online savings accounts, paying a high annual percentage yield (APY) with a $5 initial minimum deposit requirement. There are no monthly maintenance fees if you opt-in to electronic statements.
• Mobile app: The Alliant app offers best-in-class features like account inquiries, transfer requests, online bill payment, mobile check deposit, and more.

NASA Federal

NASA Federal Credit Union (NASA FCU) started with seven NASA employees and has grown to over 200,000 members. Several other employers and organizations partner with NASA FCU, and the staff and members of those groups are also eligible to join. Relatives of current NASA FCU members can also apply. Additional highlights:

• Easy membership: To meet eligibility requirements with NASA FCU, you can become a member of one of several organizations. Joining the National Space Society is free if you join while opening accounts at NASA FCU.
• Free FICO credit scores: Members using online banking can see real FICO scores, monitor how they change from month to month, and observe which factors affect their scores.
• Personal payments through PayPal: Your friends and family probably already have a PayPal account, making it easy to send funds online to somebody who uses a different bank or credit union. There’s no need for them to download apps or sign up for new services.
• Mobile app: The NASA FCU app provides all of the features you’d expect, including mobile check deposit, online bill payment, transfer requests, and secure customer service messaging.

Lake Michigan Credit Union

Lake Michigan Credit Union (LMCU) is a large and growing credit union based in Grand Rapids, MI. Membership is open to individuals who live, work, worship, or attend school in Michigan’s lower peninsula or anywhere in Florida. As with other credit unions, you can also join if an immediate family member is a current member. Additional highlights:

• Easy membership: You’re eligible to join LMCU if you make a $5 or greater donation to the Amyotrophic Lateral Sclerosis (ALS) Association. The ALS Association is a nonprofit organization dedicated to fighting ALS, also known as Lou Gehrig’s Disease, with research, advocacy, and patient assistance.
• Reward checking: LMCU offers a checking account that pays a high APY on your account balance—but you can still use the account like a regular checking account. The account refunds up to $10 per month in ATM charges, and there’s no minimum balance requirement. However, like all reward checking accounts, you need to qualify for the high yield (make at least ten debit card purchases per month, set up direct deposit, log in to view your account at least four times per month, and use online statements).
• Alerts and text banking: You don’t always have time to log in and review your accounts, but automatic alerts and text messages can help. Find out when withdrawals hit your account, when your account balance drops below a certain level, or if anyone tries to change your personal information without your approval. You can also send a quick text message and get a response with your current account balance—there’s no need to log in to an app or website to get that information.
• Mobile app: LMCU’s mobile app offers services to make your life easier, including online bill payment, mobile check deposit, transfer requests, and more.

Other credit unions have similar features and qualification requirements. If a particular credit union has rates, features, or services you want, ask about membership options.

Note

If you’re passionate about a cause or a charity, find out if any credit unions partner with organizations in that space. A simple online keyword search can help you with that research.

One of the most important characteristics of a credit union is the common bond between members. Choosing an institution based on your values helps the credit union continue to offer great services. Plus, you get the satisfaction of helping other customers who value the same things you do.

Frequently Asked Questions (FAQs)

How much does it cost to open an account?

Getting started with a credit union account is easy. Make sure you meet their eligibility requirements, pay between a $5 to $25 deposit, and you’re ready to start your account.

Can you still withdraw money from an online credit union?

Credit unions often have shared branches—sometimes called sister branches—that allow you to conduct your business as you would at your credit union. So even if you can’t withdraw money from your credit union, you should be able to find a local credit union that offers shared banking with no or minimal fees.

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

Credit unions are usually not-for-profit organizations that cater to their members. While credit unions work to bring profits to their members, banks give profits back to their shareholders. Thankfully, choosing between a bank and a credit union shouldn’t limit you to the available products, but knowing which is the right choice for you and your unique needs is essential.

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