To create this list, Forbes Advisor averaged the star ratings of credit unions that were the top finishers across more than 20 of our “best of” banking studies, such as our lists of theThose studies analyzed more than 20 credit unions, reviewing them based on various data points, including fees, APYs, ATM and/or branch access, customer experience, digital experience and account minimums..A credit union is a not-for-profit financial cooperative that is owned and controlled by its members.
In addition to being operated by the state or federal government, credit unions can niche down even further by serving a specific population, such as military members, residents of a geographical area or employees of a certain business.Credit unions operate in much the same way as banks. Deposits made by members are used to make loans to other members.
, expand services and build reserves. Because they are member-owned and not-for-profit, credit unions can offer higher interest rates on deposits and lower rates on loans than traditional banks.Credit unions offer the same services as traditional banks, including savings accounts, checking accounts, loans and credit cards. In addition, some credit unions also offer investment services, such as retirement accounts and health savings accounts .
Once you’ve found a few potential candidates, compare interest rates, fees and products to find the best option for you. Finally, make sure to read the fine print before signing up for an account to ensure you understand the terms and conditions.difference between banks and credit unions is that banks are for-profit institutions that are owned by shareholders, while credit unions are not-for-profit institutions that are owned by their members. This ownership structure allows credit unions to offer higher interest rates on deposits and lower rates on loans than traditional banks. In addition, because credit union members are also owners, they may have more say in how the institution is run.