Pinal County Federal Credit Union on LinkedIn: #pinalcountyfcu #pcfcufamily #pinalcounty #pcfcucommunity #creditunion… (2024)

FAQs

Why is a credit union bad? ›

Credit unions may be local or regional, with limited branches outside of your area. If you travel or move, this can make getting in-person help difficult. May have fewer services. While many larger credit unions offer all of the same services banks do, some provide a limited range of products and services.

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Credit Unions are the only democratically run financial institution. A federal credit union is member-owned and controlled. Member's interests are represented by a volunteer board of directors drawn from the membership and elected by the membership.

Both Wells Fargo and Bank of America can be good choices for low-income earners since the direct deposit minimums are not overly burdensome.

One question that often arises is, "Are Credit Unions Safer than Banks?" If you're looking for a short answer, you'll be happy to know that we're not making you read the whole post: Credit Unions and banks are roughly identical in safety because deposits at both are insured by the Federal government to $250,000.

The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.

Credit unions operate to promote the well-being of their members. Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates and lower loan rates.

Like banks, credit unions can fail, but their failure is far less common and the financial fallout is mild by comparison. In 2023, for example, five bank failures represented a total of $549 billion in assets, and the First Republic Bank closure in 2024 impacted $6 billion alone.

Progressive Credit Union - You must be recommended by another member. This might be the most unique credit union requirement, and it also seems to be the toughest.

What is the richest credit union? ›

Who is the largest credit union? Navy Federal is the country's largest credit union with around $168.4 billion in total assets and 13.2 million customers at the end of 2022, according to the latest data from the NCUA.

PenFed is the easiest credit union to join on this list. It doesn't require you to have any specific affiliation to become a member. If you don't meet Alliant's, BECU's or First Tech's traditional membership guidelines, you just need to make a small donation to a partner charity or organization.

The downside of credit unions include: the eligibility requirements for membership and the payment of a member fee, fewer products and services and limited branches and ATM's.

Even though they include the word "federal" in their name, federal credit unions (FCUs) are not operated by the federal government. Not only are all of these organizations regulated by the NCUA but they are also insured by the National Credit Union Share Insurance Fund (NCUSIF).

Any income the credit union generates through interest, fees and loans is then used to fund community projects, reinvest into the organization or provide services that directly benefit members, like paying higher savings interest rates.

Can a government take your savings? Through “right of offset,” the government allows banks and credit unions to access the savings of their account holders under certain circ*mstances. This is allowed when the consumer misses a debt payment owed to that same financial institution.

The Bottom Line. Credit unions can be ideal for a low-interest loan, lower mortgage closing costs, or reduced fees, but you'll need to qualify for membership. Larger banks may offer you more choices regarding products, apps, and international or commercial products and services, and anyone can join.

The Federal Deposit Insurance Corporation (FDIC) provides insurance for bank deposits, and the National Credit Union Administration (NCUA) does the same for credit unions. Whether you choose a bank or credit union to deposit and hold your money, your funds are generally safe.

Key takeaways. The National Credit Union Administration (NCUA) is the government agency that insures deposits at member credit unions. When your money is in a share account with a federally insured credit union, it's protected up to $250,000 per depositor, per federally insured credit union, per ownership category.