According to a report done in October 2021, financial credit unions in the United States of America have seen remarkable performance growth over the past few years. Through their products and services, they’ve offered customers more than conventional banks. While other things give them competitive leverage over traditional banks, their non-profit model is foundational. Hence, they regard customer satisfaction in high esteem.
Projections are showing that things can only get better for financial credit unions. So, if you’re thinking about opening a financial product, it’s only fitting for you to take advantage of the benefits credit unions offer. And to do this, you must choose those with competitive terms, great interest rates, lower fees, and so on.
For us to assist this selection, this article will explain what financial credit unions are and the products and services they offer. Similarly, this article will also show you the top three best financial credit unions in the US through a thorough comparison and analysis. So read on to identify and choose any of them.
What are Financial Credit Unions?
Financial credit unions are financial organizations running a non-profit model while providing customers, primarily members, the same financial products as conventional banks. The difference between financial credit unions and traditional banks is that the former terms are often better than those of the latter. While traditional banks take profits shared amongst several shareholders, financial credit unions reinvest the profit they make from account fees and interest back into the products they sell.
Joining a financial credit union has many benefits, but there are eligibility requirements to enjoy these benefits. These requirements vary from one credit union to another. For example, you may be required to submit docs that show your house, work, or your affiliation with specific groups. You might also be required to donate some membership fees. Whatever the case is, joining a credit union can save you a lot of money on loan products, accounts products, and savings products.
Top 3 Best Financial Credit Unions in the US
With well over 5,000 financial credit unions in the US, it can be tricky to pick one for yourself. However, we’ve worked on the complexity involved and reduced the list to three for you. The criteria for this shortlisting is based on the following:
- Ease of membership
- Number of available branches nationwide
- Numbers of available financial products
- NCUA Insurance value
The following are three of the best financial credit unions that meets all the criteria mentioned above:
1. Alliant Credit Union
Ranked the overall best financial credit union in the US, Alliant Credit Union is a customer-first institution. They invest in customers’ goals and the ease of banking due to human and technological efficiency fusion. Membership is easy once eligibility requirements are met.
2. Penfed Credit Union
With well over 2.5 million people as members all over the nation, Pentagon Federal Credit Union is a leading financial institution renowned for outstanding credit card service, affordable mortgages, and easy-to-payback car loans. Although membership was formerly tied to military affiliations, interested individuals no longer need that to become members. At Penfed Credit Union, you can open a savings and share account for as little as $5.
3. Navy Federal Credit Union
Reputed to be the largest financial credit union, Navy Federal Credit Union is one of the highly-rated credit unions in the US and the world. With well over 345 branches, this organization has served women and men in the armed forces, including the active, veteran, retired, and annuity. Eligibility is only open to men and women in the armed forces
Now that you know three of the best financial credit unions in the United States of America, you’re left to choose which to join. While deciding that, the following are questions we believe might be lingering in your mind. Of course! We have provided answers for it all. Read on!
Are Financial Credit Unions Insured?
Yes. The same way conventional banks are insured by the Federal Deposit Insurance Corporation (FDIC), credit unions are insured by the National Credit Union Administration (NCUA). This coverage for credit unions even goes as high as $250,000.
Why are Financial Credit Unions Non-Profit Organizations?
The reason for this lies in the goal and method. For the goal, financial credit unions set out to serve its members to gather savings which could serve as loans for members; while for the method, profits taken aren’t shared amongst shareholders but rather used to improve financial products.
What Do Financial Credit Unions Have in Common with Traditional Banks?
Credit unions are similar to regular banks because credit unions offer almost the same financial products as traditional banks, including deposits, savings, mortgages, loans, checking accounts, etc.
What Makes Financial Credit Unions Different from Traditional Banks?
Financial credit unions offer better deposit and loan rates, apart from not taking profits from members. They also cooperate, while traditional banks compete with one another. Credit Unions also participate in grassroots efforts, fundraisers, awareness campaigns, etc.
Can I Get Loans Without Membership?
Interested individuals can apply for a loan before being a member, but the loan can only be accepted when they become a member. All you need to do is to figure out the eligibility criteria for the credit union of your choice.
What is the Difference in Loan Approval Between Credit Unions and Traditional Banks?
While traditional banks usually stick to a rigid yes or no concerning loans, credit unions are more flexible in their considerations. Credit Unions protect the interests of their members while giving them loans, but the same can’t be said of conventional banks.
As there’s a consistent increase in the number of people joining financial credit unions, given how this union give members a sense of ownership and security over their funds, the best way to enjoy other benefits of credit unions is to become members of the top three rated financial credit unions in the US. However, while doing this, it’s crucial to know the eligibility requirements for membership.