What should you do with your money?
For previous generations, the answer was obvious: put it in a savings account. The interest would give you a nice nest egg when you retire. However, those days are long gone. Equally, you might not even be able to open a bank account if your credit is poor.
Instead, you are better off deciding to put your money into a credit union; an increasingly great alternative. There are not as many stipulations to open a credit union account as there are with a bank account. And there are many perks.
But which one should you choose? Here’s a list of some of the best credit unions in the U.S.
1. Star One
Star One credit union offers free checking accounts to its customers. You must have at least $25 to be able to open an account as a deposit. However, once this money hits your account, there are no further fees. Interest is low as you would imagine for a credit union at just 0.25%, but generally, interest is low for most bank accounts and credit unions.
You can of course increase this if you are a student or you opt for a specific rewards account.
ATM fees are also waived if you go all-in with Star One’s reward accounts. If you’re looking to open a credit card-style account with any credit union, remember that interest is generally less than 10%, so this could be a good deal for you.
2. Boeing Employees
Boeing, the company that designs and engineers planes, has a credit union. For much of its history, you had to be employed by Boeing to be able to be a member. Now any member can join and take advantage of all their benefits.
Their offering on a Member Advantage Checking account is an eye-turning 4% APY. But remember this only applied to the first $500 you deposit. And you must also open a Member Share Checking account where the interest is much lower at 0.05% APY.
What’s great about both accounts with Boeing is that there are no fees to maintain the accounts.
3. Pentagon Federal Credit Union
As the name suggests, the Pentagon Federal Credit Union was an exclusive credit union for members of the armed services and government departments. Since 2019, anyone has been able to join it and take advantage of its many perks.
Interest is 1.6% APY, a competitive rate especially during a global pandemic and worldwide financial crisis.
If you want a higher rate of interest, you can get it but you have to invest a larger lump sum, typically in excess of $1,000.
There’s a charge of $10 unless you are depositing $500 a day and if you have that much money to burn then you might have many better options to consider.
What Are the Best Credit Unions for You?
So. what are some of the best credit unions for you to deposit your hard-earned cash in? The truth is that there are loads of options in 2020. There is no best option. It’s simply about deciding which credit union or bank is right for your individual needs.
Some credit unions have high interest but a large upfront deposit while others have low interest but almost no minimum requirement or on-going fees.
If you are interested in reading more about credit unions and other financial institutions, keep tabs on our blog!