7 Best Credit Unions of 2023
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The best credit unions offer the same accounts and services as banks, but often with much better terms. NerdWallet researched some of the country's top institutions — both national and local — to determine our picks.
This year’s best credit unions offer great rates, low fees, a good banking experience (including easily accessible customer service) and generous perks. Some offer access to a shared network, meaning members can visit and use other credit unions’ branches and ATMs. Our top five options are easy to join, too, and below those you'll find two with more stringent eligibility requirements.
» Explore more options with NerdWallet’s best banks and credit unions
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
The best credit unions offer the same accounts and services as banks, but often with much better terms. NerdWallet researched some of the country's top institutions — both national and local — to determine our picks.
This year’s best credit unions offer great rates, low fees, a good banking experience (including easily accessible customer service) and generous perks. Some offer access to a shared network, meaning members can visit and use other credit unions’ branches and ATMs. Our top five options are easy to join, too, and below those you'll find two with more stringent eligibility requirements.
» Explore more options with NerdWallet’s best banks and credit unions
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
If your federally chartered credit union fails, the National Credit Union Administration keeps your money safe up to $250,000 per person, per institution and per ownership category.
Best Credit Unions
Bank/institution | NerdWallet rating | Learn more |
---|---|---|
![]() Alliant Credit Union | Best for Credit union overall | Read review |
![]() Consumers Credit Union Learn more at Consumers Credit Union, Federally insured by NCUA | Best for Checking APY | Learn more at Consumers Credit Union, Federally insured by NCUA |
![]() Connexus Credit Union | Best for Checking | Read review |
![]() PenFed Credit Union | Best for Vast ATM network | Read review |
![]() Service Credit Union | Best for Vast ATM network | Read review |
![]() SchoolsFirst FCU | Best for California school employees | Read review |
![]() BECU | Best for High APY on youth savings account balances below $500 | Read review |
Our pick for
Credit union overall
Why We Like It
Alliant Credit Union's High-Rate Checking earns 0.25% annual percentage yield if you receive e-statements and have at least one electronic deposit a month. There are no minimum balances or monthly fees. And High-Rate Savings earns 3.10% APY on balances of $100 or more. There are no monthly fees if you opt for e-statements.
Alliant members have access to over 80,000 fee-free ATMs across the country. Anyone can apply to be a member. Among other ways of qualifying, people who live or work nearby its headquarters in Chicago are eligible to join, as well as those who agree to support Foster Care to Success and have Alliant make a $5 donation on their behalf.
Pros: Anyone is eligible to join; strong interest rates; vast ATM network; easy to avoid fees.
Cons: No branches.
Our pick for
Checking APY
Why We Like It
Consumers Credit Union's Rewards checking account earns 5.00% on balances of up to $10,000 if you meet the requirements, including spending at least $1,000 per month on an affiliated credit card. Meeting fewer requirements still earns you high rates, and there are other checking options (that don’t pay interest) with easy requirements for opening an account. The basic savings account is free, but it pays much less interest.
Though Consumers is based in Illinois, and all of its branches are in the Chicago area, anyone can become a member by joining a Consumers-affiliated nonprofit for $5. Members can also access Co-op shared branches and ATMs.
Pros: Easy membership eligibility; highly competitive APY on checking; shared branches and ATMs.
Cons: Lots of requirements to earn highest APYs for checking account; low savings account APY.
Our pick for
Checking
Why We Like It
Connexus Credit Union’s Xtraordinary checking account earns 1.75% on balances up to $25,000 if you meet a couple of requirements, including subscribing to e-statements and making 15 debit card purchases or spending $400 with your debit card each month. It also reimburses up to $25 in non-network ATM fees each month. There’s no monthly fee. The regular savings account pays a much lower rate than the checking account, but the only requirement to earn interest is a minimum daily balance of $100.
Connexus members can bank at about a dozen Connexus-branded branches, mostly in Wisconsin, thousands of shared branches and over 67,000 free ATMs. Anyone can apply for an account after joining the Connexus Association, which provides college scholarships and financial education, for a one-time $5 fee.
Pros: Anyone is eligible to join; fee-free checking account earns interest and includes ATM fee reimbursements; shared branches and ATM network.
Cons: Must use debit card frequently or spend large monthly amount to earn checking APY; low APY for savings.
Our pick for
Vast ATM network
Why We Like It
PenFed offers competitive APYs, including strong certificate rates. Anyone is eligible to join the credit union; the only requirement is that you open a savings account with an initial deposit of at least $5. PenFed offers a vast network of free ATMs — more than 85,000 across the country.
Pros: Anyone is eligible to join; vast network of free ATMs.
Cons: Only about 50 branches are available, mostly on the East Coast and in the South.
Why We Like It
Service Credit Union offers strong certificate rates with a minimum deposit of $500, which is much lower than some other institutions require. There’s no monthly fee for basic checking and savings accounts, and the savings account offers a highly competitive 5.00% APY on balances up to $500. Service Credit Union’s ATM network is massive, offering fee-free access to more than 85,000 machines as part of the Allpoint and Co-op networks.
Military members, employees of the Department of Defense and families members of the two groups are among those eligible to join. However, anyone can become eligible to join by first becoming a member of the Financial Fitness Association, which requires an $8 annual fee, or a member of the American Consumer Council, which requires a one-time $15 fee.
Pros: Easy membership eligibility; high APY on savings balances up to $500; vast network of free ATMs; shared branches.
Cons: Low APY on savings balances over $500.
Our pick for
California school employees
Why We Like It
This credit union offers checking and savings accounts with no monthly fees, accounts that are helpful to school employees’ particular needs, plus access to over 28,000 fee-free ATMs across the country as part of a shared network. Products that could be especially helpful to school employees include an account that helps members save in preparation for summer months when they may not be employed and won’t receive a paycheck.
You can apply if you are or were part of California's public educational community or work in other education jobs, or are an immediate family member of an existing member.
Pros: Checking and savings accounts with no monthly fees; shared ATM network; accounts that cater to school employees’ specific financial needs.
Cons: Membership eligibility is limited.
Our pick for
High APY on youth savings account balances below $500
Why We Like It
BECU’s Member Advantage checking offers 4.07% APY on balances of $500 or less; the Member Advantage savings also offers 3.04% APY on balances of $500 or less. Best of all, the Early Saver account for kids offers 6.17% APY on the first $500.
Most of BECU’s over 50 branches are in Washington state, but the credit union participates in the Co-op network that gives members access to about 5,500 branch locations and 30,000 surcharge-free ATMs across the country. Membership is available to residents of Washington state and some counties in Idaho and Oregon, and Boeing employees, among other select groups.
Pros: Shared branches and ATM network; excellent rate on youth savings accounts for a limited balance.
Cons: Membership eligibility is limited.
These credit unions represent some of the best institutions overall, but there may also be local winners in your community. Research if there’s a credit union or bank near you that offers low fees and gives you a good return on your money.
More things to know about credit unions
Can I use both a credit union and a bank?
Yes. There’s no rule that says you can’t keep some money at a credit union and some at a bank. It’s possible to use both services at the same time.
Are online credit union accounts different from in-person ones?
Online credit unions generally offer the same products and services as credit unions that have branches. You can typically deposit checks, pay bills, review your transactions and transfer money to your other accounts or to friends and family. If you live close to one of your credit union’s branches, you can get help there, too, but being able to transact online is especially handy if you’re not near one.
Are the best credit unions also the biggest?
Not necessarily. Some of the biggest credit unions have similar advantages to banks, including highly rated mobile apps and wide ranges of financial products. But you might get more personalized service at a small, local credit union. And some credit unions belong to the Co-op network, meaning you can bank at about 5,500 credit union branches across the country and use more than 30,000 ATMs — that’s a larger ATM network than many banks have.
Don’t count out your local credit union when searching for a financial institution.
Is the money in credit union accounts safe?
Yes. Like the Federal Deposit Insurance Corp., which handles banks, the National Credit Union Administration insures customers’ deposits in case a credit union fails. All federally chartered credit unions must carry NCUA insurance. It covers credit union members’ deposit accounts: checking, savings, and money market accounts, as well as share certificates. The NCUA insures up to $250,000 per depositor, per institution, per ownership category. “Ownership category” refers to account types such as single (owned by one person) or joint (owned by two or more people).
» MORE: Learn how NCUA insurance works
How can I find a local credit union?
If you’re in the market for a credit union, and you’d like to be able to visit a branch, check out the NCUA’s credit union locator. Just note that if you’re comfortable with banking online, you can choose one of the top five credit unions mentioned above that have wide eligibility, almost no matter where you live.
Do the best credit unions pay more interest than banks?
Credit unions have a reputation for paying more interest than banks, and it’s often well-deserved. According to the most recent data from the National Credit Union Administration, credit unions pay higher average rates on money markets and all surveyed certificate terms.
But it's not hard to find an online bank that pays higher rates on savings and checking than the average credit union.
If you’re comparing your credit union with big, brick-and-mortar banks, the credit union’s rates will probably come out on top. But if you’re comparing it with an online bank, the competition might be tougher.
Do credit unions build credit?
Individual credit scores come from a mixture of the following: the number of loans or credit card accounts you have, the number of on-time payments you’ve made, the percentage of your overall credit limit that you’re using, the number of hard credit checks that have recently been made for you, the derogatory marks (like bankruptcies or foreclosures) made against you and the age of your credit history.
To this end, you can build your credit by taking out a mortgage, auto loan, student loan, personal loan or credit card with a credit union.
Do credit unions check your credit?
When it comes to getting a loan, a lender will typically pull a credit report on you, whether it’s a bank, a credit union, an online lender or another type of company. But for checking and savings accounts, policies vary. It’s more common for financial institutions to pull up your report through a service known as ChexSystems, which records information such as past bounced checks and overdrafts.
The only sure way to find out which reports your credit union pulls when deciding to approve you for membership or products is to ask.
» Learn more about how to clear your ChexSystems report
Do credit unions have ATMs?
Yes, credit unions usually have their own ATMs and they often belong to a network of ATMs that customers can use to withdraw and deposit cash. These networks usually provide nationwide access to fee-free services at tens of thousands of ATMs.
Are there any downsides to credit unions?
Membership requirements. Credit unions have membership requirements and sometimes the requirements are too exclusive for the average person, like some military credit unions for example. However, there are cases where a potential customer can do something as easy as make a small donation to a partner charity to gain membership to a credit union.
Limited branches. Many credit unions are limited to local, state or regional areas, which means in-person customer service can be hard to get, especially when traveling. To avoid this limitation, consider a credit union that participates in a shared branch and/or shared ATM network. The Co-op network, for example, offers access to more than 30,000 fee-free ATMs across the U.S., and about 5,500 branches.
Might not be as up to date on technology. Some credit unions may be behind the curve with their desktop and smartphone app designs, offering only bare-bone services. Make sure a credit union has the services you want (such as mobile check deposit) before you open an account.
Services may be more limited. Smaller credit unions might not have the variety of services and products that larger banks do, so before you open an account, be sure your credit union has all of your preferred features.
Credit union terms you need to know
Credit unions and banks both have checking accounts and both pay interest on savings accounts, but they might call those products by different names. Here are a few credit union translations.
Dividend: Another word for interest paid by a credit union.
Shared branches: A shared branch network allows members of one credit union to visit branches of another credit union that are within the same network, such as the Co-op Shared Branch network.
Share certificate: Credit unions typically use this term to refer to certificates of deposit.
Share draft account: Another term for a checking account. Some credit unions also call checks “share drafts.”
Last updated on January 23, 2023
Methodology
For this review, we considered the credit unions that we review annually.
We took a close look at the nation’s largest credit unions, based on assets and membership, plus other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
The credit unions we considered are:
Alaska USA Federal Credit Union, Alliant Credit Union, America First Credit Union, Andrews Federal Credit Union, Boeing Employees Credit Union, Connexus Credit Union, Consumers Credit Union, First Tech Federal Credit Union, Golden 1 Credit Union, Hope Credit Union, Lake Michigan Credit Union, Navy Federal Credit Union, Pentagon Federal Credit Union, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees’ Credit Union of North Carolina and Suncoast Credit Union.
To recap our selections...
NerdWallet's Best Credit Unions of 2023
- Alliant Credit Union: Best for Credit union overall
- Consumers Credit Union: Best for Checking APY
- Connexus Credit Union: Best for Checking
- PenFed Credit Union: Best for Vast ATM network
- Service Credit Union: Best for Vast ATM network
- SchoolsFirst FCU: Best for California school employees
- BECU: Best for High APY on youth savings account balances below $500
Frequently asked questions
Credit unions are not-for-profit financial institutions that, like banks, offer checking and savings accounts and long-term savings certificates. Some also offer loans and other products.
Although they offer many of the same products, banks and credit unions operate differently. Credit unions are not-for-profit institutions, which often translates to fewer fees and higher savings rates. Banks, meanwhile, tend to offer a greater variety of products and better technology, but usually have more fees and lower savings rates.
NerdWallet’s picks for best credit union typically pay high rates on your balances, charge few fees and have easily accessible customer service and relaxed membership requirements. But not all credit unions offer all of those qualities. Some have only a small number of branches and ATMs and limited customer service hours, or restrictive membership requirements, for example. That doesn’t necessarily matter; the best credit union for you is one that’s strong in areas that are important to you.
» Need help deciding where to put your money? Learn how to choose a bank or credit union
That depends on the credit union. Many credit unions were created by and for certain groups of people, such as employees of a certain company or residents of a certain town — and some are still fairly restrictive. If your job, location, faith community or other group is represented with a credit union, you can apply for membership usually at a branch or online.
Other credit unions require only that you make a small donation (often less than $10) to an affiliated nonprofit to become eligible for membership. You can join these credit unions even if you live far from headquarters.
» Learn more: See the benefits of credit union membership