Best Credit Unions: May 2025

Editorial Note: This content is not provided by the companies mentioned. Opinions expressed here are author's alone, and have not been reviewed, approved or otherwise endorsed by the companies.
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. This compensation may impact how and where products appear on this site. You help support CreditDonkey by using our links. (read more)

Looking for a better way to bank? Explore credit unions for lower fees and better rates.

PRO TIP: Right now, one of the best credit union savings rates can be found with American First Credit Union with an impressive 4.30% APY. You can open an account with just $1 and start earning interest right away.

Top Credit Union Rates for May 2025:

Is your bank taking more than it gives? Credit unions are a refreshing alternative to big banks. They're known for less fees, higher APYs, and more personalized service. And plus, they often give back to their communities.

Check out the best credit unions to make the switch today.

Best Credit Union Checking Accounts

Best Credit Union Savings Accounts

Best Credit Union CDs

Right now, one of the best credit union CD rates can be found with Technology Credit Union: 5-Month No Penalty CD - 4.00% APY. Plus, there is no early withdrawal penalty so you can withdraw your money early if needed.

About Credit Unions

What's most important to you when choosing a credit union?

Credit Union vs. Banks

Credit unions offer similar banking products and services as banks, but they're not-for-profit. They're owned and run by members for members.

Not-for-profit means that the main goal is to provide services to a specific community, not to make a profit. Revenue is invested back into the credit union to benefit the members. Usually in the form of less fees, higher APYs, and lower lending rates.

On the other hand, banks are for-profit, which is why many traditional banks have monthly service fees, yet still low APYs. However, banks usually will have more comprehensive services.

Another thing about credit union is that they're usually limited to certain communities. Learn more about how to join in the next couple of sections.

PRO TIP: Right now, one of the best checking account bonus can be found with Bank of America Advantage Banking: $300 Bonus Offer.

Is it better to use a bank or credit union?
This depends on what you need. Big banks usually have more services, but also higher fees and account requirements. Credit unions usually have better interest rates and fees, but more limited services.

Are Credit Unions Safe?

Credit unions are safe as long as they're insured by the National Credit Union Administration (NCUA). If the credit union fails, your deposits are protected up to $250,000 for single-ownership accounts and $500,000 for joint accounts.[1]

The NCUA is an independent agency that supervises federal credit unions and provides insurance coverage. It's backed by the full faith of the US government.

You can find the NCUA logo on the credit union's website and branches. That's how you know it's safe.

How to Join a Credit Union

Usually, credit unions have rules to join. They might serve only people living in specific cities or working with specific companies. Their website will state the eligibility requirements.

However, there are national credit unions that accept members nationwide. Typically, you just need to make a small donation to an organization they support.

For example, Consumers Credit Union lets anyone join with a $5 fee to the Consumers Cooperative Association (which offers student scholarships) and they even reimburse you.

Pros and Cons of Credit Union

Credit unions generally have lower fees, but there are also disadvantages. Here's a look at the pros and cons:

Pros:

  • Lower fees
    Many credit unions don't have monthly service fees, or just a very low fee if you don't meet certain requirements (typically lower than traditional banks). Other fees, like overdraft fees, are usually lower too.

  • Better interest rates
    Credit unions generally offer higher savings APYs since profits are given back to their members. And if you want to take out a loan, the interest rate on loans are typically lower too.

  • Less strict loan requirements
    Credit unions tend to have more flexible requirements when it comes to loans. They might be more willing to work with bad credit and other unique situations.

  • Better customer service
    As mentioned, credit unions are member-focused. So naturally, they strive to provide great customer support.

Cons:

  • Eligibility requirements
    Credit unions are usually limited to people in certain regions or working for specific companies. However, the credit unions on our list are nationwide and offer anyone the ability to join.

  • Limited locations
    If you're looking for a physical credit union, there might be very limited number of branches. This could be difficult to find ATMs or branches if you move or travel a lot.

  • Less services
    Credit unions may not have multiple checking and savings accounts to choose from. And they may not offer some services, like private banking and investing.

How to Choose a Credit Union

Here are some things to look for when choosing a credit unions:

  • Eligibility
    Many credit unions limit their membership to certain members of a community, or you have to join an organization. Make sure you're okay with the requirements before joining.

  • Locations / access
    Do you like to bank in-person? If so, look for a credit union with physical branches and ATMs near you. If you're ok with completely online banking, you'll have more options for online credit unions.

  • Fees
    Though rare, some credit unions may have a monthly fee if you don't meet certain requirements. And there's usually other account fees, like overdrafts, out-of-network ATMs, paper statements, etc. Make sure you know what to expect.

APYMinimum Deposit
American First Credit Union: Money Market Deposit Account4.30%$1Learn More
Harborstone Credit Union: Money Market Deposit Account4.25%$1Learn More
UNCLE Credit Union: Money Market Deposit Account4.24%$1Learn More
SkyOne Federal Credit Union: Money Market Deposit Account4.20%$1Learn More
First Financial Northwest: Money Market Deposit Account4.10%$1Learn More
Blue Federal Credit Union: Money Market Deposit Account4.00%$1Learn More
GreenState Credit Union: High-Yield Savings Account3.75%$1Learn More
WECU: High-Yield Savings Account3.00%$1Learn More
Great Lakes Credit Union: Money Market Deposit Account2.00%$1Learn More
Consumers Credit Union: Free Rewards CheckingEarn up to 5.00% APY$5Learn More

Alternatives to Credit Unions

If credit unions are not the best option for you, here are other banking solutions you can consider:

Online banks
Many online banks offer free checking accounts with no monthly fee or minimum balance requirements. Plus, there are no specific eligibility requirements.

Best online checking accounts:

High-yield savings accounts
If your main goal is to get the highest rate possible, check out these online high-yield savings accounts. Since there are no physical locations, they can offer high APYs to customers.

Compare Savings Account Offers

Community banks
Community banks are small banks that serve a specific geographical region. Because of their small size and limited scope, they tend to be more in-tune with the unique needs of the people in local community.

Payment services
PayPal, Venmo, and Cash App can replace a traditional bank account if you only need the basics. Just like a normal checking account, you can get a debit card, pay bills, set up direct deposit, and deposit checks with the app.

Credit Unions FAQs

Do credit unions pay interest higher than banks?
Since credit unions are member-owned and non-profit, they typically offer higher savings APYs than banks in order to give back to their members.

Is it easier to get a loan from a credit union?
Yes, credit unions usually have more flexible requirements compared to traditional banks when it comes to lending. And often, credit union can offer lower interest rates too.

Why do credit unions have membership fees?
Credit unions may charge a small one-time fee to activate your membership. Oftentimes, this fee is a donation to an organization that the credit union supports. Some credit unions, like Consumers Credit Union, even pay the fee for you.

Are credit unions insured?
Yes. Credit unions are insured by the National Credit Union Administration. This is an independent federal agency that regulates and insures credit unions. Your deposits are protected up to $250,000 per share owner.

Do credit unions have online banking?
Yes, just like banks, credit unions have their own website and mobile app so you can bank from anywhere. As long as you're eligible to join, you don't need to live locally to the credit union.

Bottom Line

A credit union could be a good alternative if you want to get away from big banks. Not only do credit unions often have lower fees and better rates, they have their members' best interest at heart.

Think about what features and services you want, and make sure the credit union fits your needs.

References

  1. ^ NCUA. How Your Accounts are Federally Insured, Retrieved 4/12/2024

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

TrendingA visitor from Texas read American First Credit Union Review
FeaturedA visitor from Georgia read U.S. Bank Review
FeaturedA visitor from Arizona read Chase Bank Total Checking Review
FeaturedA visitor from Pennsylvania read Alliant Teen Checking Review
Expert InsightsA visitor from Washington read High Yield Savings

About CreditDonkey
CreditDonkey is a bank comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2025 CreditDonkey Inc. All Rights Reserved.