Takeaways
- Credit unions are not-for-profit institutions that focus on serving members.
- As of 2024, in the U.S., there were over 142.3 million members of credit unions.
- Membership gives access to higher savings rates and lower borrowing costs.
- Credit unions can have many branch locations or operate exclusively online.
- Credit unions offer high-yield share certificates (CDs) and share accounts (savings accounts).
If you want a more personalized and community-focused alternative to traditional banks, joining a credit union might be the best choice for your finances. Credit unions are member-owned, not-for-profit financial institutions that often offer better rates, lower fees, and more attentive service than big banks.
Credit union membership grew by 3 million members from 2023 to 2024.[1] If you want to join the rapidly growing credit union membership, this article discusses the steps you need to take.
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Take the Next Step:
7 Quick Steps to Join a Credit Union
Here are seven steps you can take to join your local credit union and start accessing the financial savings and credit products you need.
1. Review Your Finances
Before joining a credit union, consider what you need from a financial institution. Are you looking for lower loan rates, better annual percentage yield (APY) savings products, or personalized service? Do you need a place for daily transactions or long-term investments? Knowing your financial goals and habits will help you choose the right credit union for your personal finances.
2. Consider What You Want from a Credit Union
Credit unions vary in size, services, and membership benefits. Some serve specific communities or professions, while others are open to larger groups. When selecting a credit union, consider:
- Location - Do they have branches or ATMs near you?
- Products - Do they offer checking, savings, personal loans, credit cards, and investment options?
- Rates and Fees - How do their interest rates and fees compare to other institutions?
- Customer Service - Are they known for helpful, friendly service?
3. Make Sure You Qualify
As of March 2024, there were 4,572 federally insured credit unions in the United States.[2] Unlike banks, credit unions have membership eligibility requirements. These can be based on where you live, work, worship, or attend school.
Some credit unions serve specific employers or industry groups, while others are open to broader communities. Check the credit union's website or contact them directly to learn about their membership criteria.
Credit Union Examples:
- Navy Federal Credit Union serves military members, Veterans, and their families, has over $181 billion in assets under management, and over 14 million members.[3]
- PenFed Credit Union has over 2.9 million members of the military and civilians.[4]
- NASA Credit Union focuses on serving current and retired NASA employees, as well as their family members.[5]
- RBFCU focused on members in different Texas-based communities. There are over 5,000 ways to join this credit union.[6]
4. Gather Your Information
Once you have chosen a credit union and confirmed your eligibility, you must gather basic information to apply for membership, which usually includes:
- Government-issued photo ID (driver's license, passport, etc.)
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Proof of address (such as a utility bill or lease agreement)
- Employment or membership information (if required for eligibility)
5. Complete Membership Application
Next, complete the membership application online, in person, or by mail. The application will ask for your details and eligibility information.
Most credit unions also require you to open a share account, which acts like a savings account and represents your ownership in the credit union. Opening your share account usually requires a small initial deposit, typically $25 to $100.
6. Deposit Funds
To activate your membership, you must deposit money into your share account. You can fund this account by transferring money from an existing bank account, depositing a check, or bringing cash to a branch.
Once your account is open, you can begin using the credit union's additional products and services, including checking accounts, debit cards, online banking, and loans.
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7. Start Investing in Products
After joining, explore your credit union's full range of financial products and services. These might include:
- Checking accounts with low or no fees
- Share certificates (similar to CDs)
- Share accounts with low or no fees
- Personal loans, auto loans, and mortgages with competitive rates
- Credit cards with member-friendly terms
- Retirement accounts and investment services
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What to Know About Credit Unions
- Credit Unions vs. Banks—Credit unions differ from banks in several ways. They are not-for-profit institutions owned by their members, which means profits are returned to members through better rates and lower fees. Banks, on the other hand, are for-profit entities that answer to their shareholders.
- Deposits Are Share Accounts—At a credit union, when you open a savings account, it is called a share account because it represents your share in the institution. This means you are not just a customer but a part-owner of the credit union. Similarly, checking accounts may also be referred to as share draft accounts.
- Credit Union Memberships—Credit union membership is not just about financial services; it's about empowerment. It gives you specific rights, such as participating in annual meetings and voting on the board of directors.
- Credit Unions Can Use Share Networks—Even if your credit union is small, you are not limited to its branches. Many credit unions are part of shared branching networks, meaning you can access thousands of other branches and ATMs nationwide without extra fees.
Smart Summary
Joining a credit union can be a fantastic way to boost your access to better savings products and lower-cost credit products. Review your professional and personal membership eligibility to see which credit unions you qualify for. You can complete the application and start depositing funds once you have selected the best credit union for your financial needs. The right credit union can give you access to a wide range of member-focused financial products and perks.
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(1) Statista. The number of members of credit unions in the United States from 2013 to 2024. Last Accessed April 28, 2025.
(2) National Credit Union Association. Quarterly Credit Union Data Summary 2024 Q1. Last Accessed April 28, 2025.
(3) Navy Federal Credit Union. Corporate Fact Sheet. Last Accessed April 28, 2025.
(4) PenFed Credit Union. Our Mission. Last Accessed April 28, 2025.
(5) NASA Credit Union. Membership. Last Accessed April 28, 2025.
(6) RBFCU. Membership. Last Accessed April 28, 2025.
