Choosing a Credit Union Checking Account

A checking account provides you with the convenience of handling your day-to-day financial transactions. You can use it to pay bills, purchase items using a debit card or make electronic payments. Credit unions offer a variety of checking accounts that provide you with a range of benefits to meet your unique needs. Compared to banks, credit unions tend to charge less in fees and provide more features to help you manage your finances.

Unlike banks, which are run for profit, credit unions are not-for-profit financial institutions. This translates into lower fees and higher rates on savings accounts, loans and other products. In addition, federally insured credit unions can provide members with a greater sense of security.

As a result, credit unions are often rated better in customer satisfaction than banks in the 2017 American Customer Satisfaction Index Finance and Insurance Report. This is especially true when it comes to checking accounts, where many people find that the personal service they receive at a credit union is far superior to what they get from a bank.

Some credit unions offer free checking accounts, while others charge a fee to join and maintain an account. Whether or not you choose to pay these fees can make the difference between getting a great deal and a bad one. When choosing a Credit Union Checking Account, consider the cost of joining and maintaining an account, as well as any monthly maintenance fees, ATM fees or overdraft penalties. You can also compare the APY annual percentage yield of different checking accounts to see which offers the best interest rate.

Before you open a checking account at a credit union, make sure that you meet the membership requirements. These include a Social Security number, date of birth and identification that shows your identity. You should also be at least 18 years old and a U.S. citizen or permanent resident.

Once you have met the membership requirements for a particular credit union, it’s important to find an account that suits your lifestyle. You should look at the availability of ATMs and branches in your area, as well as their hours of operation. You should also check for online tools that allow you to manage your account at a time and place that works for you.

If you want to earn a little bit of interest on your checking account balance, consider a premium checking account. These accounts typically provide a much higher annual percent rate of return than standard checking accounts. To qualify for a high interest account, you typically need to have at least $1,000 in recurring direct deposits each statement cycle and be enrolled in eStatements.

If you’re ready to start managing your money more effectively, you should check out the options for checking accounts at your local credit union. These non-profit financial institutions are a great alternative to traditional banks and offer a wide range of valuable products. Plus, your funds at a credit union are federally insured by the NCUA up to $250,000. So, you can have peace of mind knowing that your funds are safe and secure.