Latest news with #PenFed
Yahoo
14-05-2025
- Business
- Yahoo
Fitch Upgrades PenFed Auto Loan Securitizations Due to Strong Performance
Fitch Global Ratings upgraded ratings on one class and affirmed ratings on three classes in PenFed Auto Receivables Owner Trust 2022-A. TYSONS, Va., May 14, 2025 /PRNewswire/ -- PenFed Credit Union, one of the nation's largest federal credit unions, received notable upgrades from Fitch on the ratings of the bonds issued through its inaugural prime auto loan securitization offering PenFed Auto Receivables Owner Trust 2022-A (PNFED 2022-A) due to strong performance. The affirmations and upgrade of the outstanding notes reflect available credit enhancement (CE) and loss performance to date. Overall, cumulative net losses (CNL) are tracking inside the initial rating case proxy, and hard CE levels have grown for all classes since close. The Stable Outlooks on the 'AAA' rated classes reflect Fitch's expectation that the classes have sufficient levels of credit protection to withstand potential deterioration in credit quality of the portfolio in stress scenarios and that loss coverage will continue to increase as the transaction amortizes. As of the March 2025 report date, 60+ day delinquencies total 0.24% of the remaining collateral balance and the CNL was 0.29%, tracking well below the initial rating case proxy. Hard CE (of the current adjusted pool balance) has increased for all classes since close. Fitch has also affirmed the "AAA" rating on the current outstanding A-4, B and C tranches and upgraded the D tranche to "AAA" from their current rating of "AA". Currently all the tranches that are outstanding in this transaction have a "AAA" rating from Fitch. Fitch maintained conservative assumptions in deriving the rating case proxy while also acknowledging the strong recent performance. The rating case proxy was derived by projections based on current performance and is currently 0.60%. Given the current economic environment, Fitch deemed it appropriately conservative to utilize this approach for the transaction. Conversely, the base case proxy, which does not include a margin of safety, was increased from 0.30% to 0.40%, considering the current macroeconomic environment. Cash flow modelling produced multiples in excess of the 5.0x multiples for 'AAAs' for each class. Fitch's full rating action commentary can be found here. PenFed's August 2022 transaction issued $460,292,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans. The securitization is a private placement offering, which in the United States is offered only to qualified institutional buyers under Rule 144A. The asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch. PenFed has the second-largest consumer loan portfolio among all credit unions across auto, personal, student, consumer loans and credit cards. PenFed also possesses one of the largest auto loan portfolios among federal credit unions, with originations across all 50 states and Puerto Rico. About PenFed Credit UnionEstablished in 1935, Pentagon Federal Credit Union (PenFed) is one of America's largest federal credit unions, serving nearly 3 million members worldwide with $31 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit like us on Facebook and follow us @PenFed on X. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer. View original content to download multimedia: SOURCE PenFed Credit Union Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-04-2025
- Business
- Yahoo
6 major credit union myths debunked
Sometimes, credit unions get a bad rap. They're not as big as some megabanks or have the same kind of marketing dollars, and as a result, they might seem harder to locate or even technologically outdated by comparison. Is their reputation well-deserved? Definitely not. According to J.D. Power, credit unions outperform banks by every measure, ranging from consumer trust to digital channels. Here's the truth about these important financial true that most credit unions have requirements for membership. However, there are several major credit unions that provide pathways to membership for just about anyone, including PenFed and NASA Federal Credit Union. For other credit unions, you will have to qualify to be a member, but the qualifications are often easier to meet than you think. You usually have to meet just one of the following requirements: Location: You live, work, or "worship" in a certain state or region. Industry: You work in an industry associated with the credit union. Family: You have a family or household member who's already a credit union member. Partnerships: You're an employee or member of an agency that partners with the credit union Other: You meet an alternative requirement, like signing up to be a member of a charitable foundation run by the credit union. Read more: 7 credit unions anyone can join Contrary to popular belief, choosing a credit union does not mean missing out on banking options or customer support. Nearly any credit union you choose will have the same products and services you can find at a bank, including: Deposit accounts: Checking, savings, CDs and more Loans: Personal loans, auto loans, and mortgages Live support: Support from live agents, whether over the phone or in person Alternative credit products: Products made specifically for people with little to no credit or past trouble with bank accounts, such as secured credit cards, Credit Builder Loans, and second-chance checking Some credit unions also offer coveted credit cards with travel or cash-back rewards. For example, Alliant Credit Union's Cashback Visa Signature card gives you up to 2.5% cash back with no annual fee or foreign transaction fees. It's true that some credit unions serve limited geographical areas. As with any bank, you'll want to check and see which areas the credit union serves before opening an account. That includes searching for nearby credit unions, checking to see if they have ATMs and bank branches in your area, and checking into limitations on where they can offer the kinds of loans you're looking for. However, you may be surprised to find that you can do most of your banking online or via an app, regardless of which credit union you choose. Many credit unions also have nationwide or even international ATM networks with tens of thousands of fee-free ATMs. Read more: What is the Allpoint ATM network? Each financial institution has its own strengths and benefits — and large, national banks are often ahead of the curve when it comes to technology. However, even though some credit unions lack certain features, many are on par with their big bank counterparts. In fact, credit unions are more focused on using technology for the benefit of customers. According to a 2024 survey by Alkami, a company that provides cloud-based digital banking solutions, the number one priority of credit unions is to invest in technology that improves member experiences. By contrast, banks also want to invest in technology, but their priority is to improve employee productivity. Either way, you won't be short of options if you shop around for a credit union with up-to-date technology. Most credit unions have the products and services you want and need, including Zelle for quick payment transfers, apps for iPhone and Android, and mobile check deposit. Credit unions are generally exempt from federal income taxes due to their not-for-profit, member-owned structure. However, credit unions do pay payroll taxes (Social Security, Medicare, and other employment-related taxes) and property taxes. Further, dividends paid to members are considered personal income and are taxed accordingly. There's no need to worry that your money is safe at a credit union. Like banks, credit unions are heavily regulated and monitored by federal agencies. Credit union deposits are typically insured up to $250,000 per depositor per institution per ownership category. The only difference between banks and credit unions in this area is which agency is responsible for their oversight. While banks are regulated and insured by the Federal Deposit Insurance Corporation (FDIC), credit unions are regulated and insured by the National Credit Union Administration (NCUA). Read more: Can credit unions fail? Most people can benefit from choosing a credit union over a bank. One of the main reasons is credit unions help you earn more interest and save more money. How? That's because credit unions are owned by members instead of shareholders, so they're able to pay you higher rates on your deposits, charge lower interest rates on loans and credit cards, and offer lower account fees. For example, the national average interest rate on bank credit cards is 15.29%, but for credit union cards, it's 12.86%. For a 60-month new car loan, the average bank rate is 7.21%, while the average credit union rate is 6.40%. Credit unions are also great for people with little-to-no credit. Not only do they tend to have more flexible credit requirements to qualify for loans, but they also offer loans and credit cards meant to help you build your credit from scratch. And depending on the credit union, you might also have access to free credit counseling as a member. If you're interested in joining a credit union, start by researching which one you qualify to join. Then, compare the products, interest rates, fees, and other features that are most important to you to narrow your choices.
Yahoo
17-03-2025
- Business
- Yahoo
Pentagon Federal Credit Union (PenFed) review 2025: A top military credit union anyone can join
Summary: Established in 1935, Pentagon Federal Credit Union (PenFed) has an open-membership charter and is the second-largest credit union in the U.S. PenFed stands out for its wide variety of bank accounts and loan products, its minimal fees on checking and savings accounts, and its low deposit requirements. PenFed was ranked among our top 10 credit unions of the year and 5 best banks and credit unions for military. PenFed offers a 0% interest, Free Checking account that has the basic features you might get with any other checking account. You only need to deposit $25 or more to open Free Checking, but there's no minimum balance requirement and no monthly fees. One thing to look out for with their checking accounts, however, is the overdraft protection terms. If you attempt an overdraft, PenFed will either draw from savings (without charging you a fee) or, for overdrafts over $300, they may offer you a line of credit. But beware, that line of credit comes with a 17.99% interest rate. Read more: Overdraft coverage vs. overdraft protection: What's the difference? PenFed's Access America Checking account requires a little more maintenance than the Free Checking option, but it also pays 0.35% when you carry a balance between $20,000 and $50,000. To avoid a $10 monthly maintenance fee, you need to either keep a daily balance of $500 or make a $500 direct deposit each month. You can become a PenFed member by depositing just $5 to their Regular Savings account. But there aren't many advantages to choosing this account over their other savings product (Premium Online Savings) since the APY is just 0.05% and the account lacks stand-out features. Read more: 7 credit unions anyone can join Another pathway to membership at PenFed is to open their Premium Online Savings account and deposit at least $5. This account is the better of the two savings options since it pays 2.90% APY on all balances. Money Market Certificates: Similar to a traditional certificate of deposit, these accounts require a minimum opening deposit of $1,000. IRA Certificates: This account mixes the features of a CD and an IRA with certain tax benefits, depending on IRA type. Coverdell Education Certificate: You can open a Coverdell certificate with just $500 and contribute as much as $2,000 a year. Unlike other types of CDs, returns on these certificates are not taxed if they're used for education purposes. Read more: What is a share certificate? Power Cash Rewards Visa Signature Card: This cash-back card earns 1.5%-2% on all purchases with no annual fee. Pathfinder Rewards Visa Signature Card: PenFed's travel rewards card offers up to four points on purchases and a variety of travel perks for an annual fee of $95. Platinum Rewards Visa Signature Card: Cardholders earn points on gas, groceries, restaurants, and more with this $0 annual fee rewards card. Gold Visa Card: PenFed's balance transfer card gives you 0% APR on transfers for 15 months, with a 3% balance transfer fee. After the introductory offer ends, APR on the card jumps up to 17.99%. Home: PenFed offers conventional mortgages, VA loans, FHA loans, jumbo loans, refinancing, and HELOCs. Their conventional mortgages are available for credit scores around 650 or higher with rates starting at 6.26% APR and origination fees ranging up to $1,995. Auto: Loans are available for new and used cars and auto refinancing. New car loans range from $15,000 to $150,000 and rates start at a low 4.09% APR. PenFed also offers a car-buying service, gap insurance, and extended warranties. Personal: Loans up to $50,000 are available with no collateral and no origination fees. Rates range from 8.99% to 17.99%. Student: PenFed doesn't directly offer student loans, but they will submit your student loan application to Sparrow, a partnering online loan marketplace. If low fees are your priority, PenFed is a solid option to consider. This credit union has both checking and savings accounts that come with $0 monthly fees, regardless of your deposit amount. PenFed also has no application fee for auto loans, and members can choose from 85,000 fee-free ATMs. Pros: Anyone can join: Unlike most credit unions, anyone can join PenFed, regardless of where they live or work. You just have to deposit at least $5 in a PenFed savings account. No monthly account fees: PenFed has both a checking and a savings option that come with no monthly maintenance fees. Large ATM network: If you can't make it to a branch, you can still use one of over 85,000 fee-free ATMs to access your accounts. Cons: Some overdrafts are subject to 17.99% interest: An overdraft of $300 or more is subject to approval and can be converted into a line of credit with a hefty 17.99% interest charge attached. Higher savings and CD rates are available elsewhere: Although the credit union offers some high-yield deposit accounts, their rates aren't as high as some other banks and credit unions. PenFed's hours of operation are somewhat limited. They're open and available for customer service Monday to Saturday, 8:00 a.m. to 8:00 p.m. (ET). Here's how you can reach out for support: Member Service: 1-800-247-5626 Mortgage and home equity applications: 1-800-970-7766 General correspondence: Box 1432, Alexandria, VA 22313-2032 For digital banking, members can use Zelle for online transfers or download PenFed's iPhone or Android apps, both of which are rated over four stars by users. However, a handful of recent reviews say the apps can be very slow and account notifications are inconsistent. Read more: 10 best mobile banking apps of 2025 PenFed Credit Union has a strong focus on supporting members of the military. Its PenFed Foundation is a nonprofit agency that offers grants to service members and supports veteran-owned businesses and entrepreneurs. PenFed also donates to organizations that serve military members, such as Canine Companions and Willing Warriors, and the credit union actively seeks to hire members of the military. The easiest way to become a PenFed member is to submit an online application for a savings account and then deposit $5 to your account. You can also become a member by applying for an auto loan or mortgage, since PenFed sets you up for membership during the application process for these loans. Yes, PenFed is a National Credit Union Administration (NCUA) insured credit union. Your deposits are protected up to the federal limit. The ABA routing number for PenFed is 2560-7844-6. PenFed membership is open to anyone. To join, you must open a savings account and deposit at least $5. Navy Federal Credit Union is the largest credit union in the U.S., followed by PenFed.
Yahoo
28-02-2025
- Business
- Yahoo
5 best banks and credit unions for military (2025)
Many banks and credit unions tailor their products and services to better serve their customers. And some focus specifically on serving military personnel and their families. We compared the top FDIC- and NCUA-insured banks and credit unions for military members, evaluating key metrics such as membership eligibility requirements, fees, customer experience, product choice, and more. (See our full methodology here.) The following is our ranking of the five best banks and credit unions for military members, veterans, and their families in 2025. Read on to learn more about each one. Pentagon Federal Credit Union (PenFed) serves more than 2.9 million members globally. It offers checking and savings accounts, credit cards, auto loans, home loans, and more. PenFed offers VA loans with a 0% down payment option and no private mortgage insurance. It also gives back to military members and their families through the PenFed Foundation — a national nonprofit committed to empowering military service members, veterans, and their communities. Since 2001, the foundation has provided more than $50 million in financial support, impacting more than 140,000 military families. PenFed received an almost perfect score in our fees, product selection, and account features categories thanks to its lack of monthly account fees and vast list of products and services, overdraft protection options, and other perks such as Zelle integration and early direct deposit. It also scored well in our security category and made our list of the 10 best credit unions overall. Unlike many credit unions, PenFed has an open charter. Anyone can become a member by opening a share account. Read more: 7 credit unions anyone can join Chase Bank is the largest bank in the U.S., operating more than 4,900 branches and 16,000 ATMs across the nation. Chase offers a wide range of financial products, including credit cards, checking and savings accounts, certificates of deposit (CDs), home and auto loans, and business and commercial banking products. Chase offers several benefits for military members and veterans. For example, they can get all the perks of Chase Premier Plus Checking, including no Chase fees at non-Chase ATMs, no Chase fees on incoming or outgoing wire transfers, and no Chase fee for foreign exchange rate adjustments on debit card purchases or ATM withdrawals. Plus, Chase will waive the $25 monthly service fee for current service members and veterans of the U.S. Armed Forces with a qualifying military ID. Read more: Capital One vs. Chase: Which bank is best for you? Navy Federal Credit Union, commonly referred to as Navy Fed, was established in 1933 and has since grown to serve 14 million members of the Department of Defense, Army, Marine Corps, Space Force, and Coast Guard, as well as veterans and their families. Navy Fed offers personal and business products and services, including checking and savings accounts, credit cards, loans, and more. Navy Fed offers military customers up to $20 in ATM fee rebates, free military checks, early access to military pay with qualifying military direct deposit, APR discounts on select loans, and more. Read more: USAA vs. Navy Federal Credit Union: Which is better for military banking needs? Capital One is a Virginia-based credit card company founded in 1994. Over the years, Capital One has expanded its offerings to include a full suite of banking products and services for consumers and businesses. Capital One also gives customers access to an extensive library of educational resources and credit tools. Capital One caps interest at no more than 4% for credit cards, lines of credit, auto loans, home equity loans, and more for all active-duty service members, reservists, and members of the National Guard. There are also no fees assessed on accounts, except bona-fide insurance. Read our full review of Capital One Armed Forces Bank was founded in 1907 and serves active-duty military, veterans, retirees, DOD, civilians, and their families across all 50 states and around the world. Armed Forces Bank offers personal and business checking and savings accounts, CDs, loans, and more. Its military customers can take advantage of free checking options, early pay, quick access to personal loans, and VA home loans. Read more: Best VA loan lenders of February 2025 Military-friendly institutions offer products and services designed to meet the needs of service members and their families. Often, this means more favorable interest rates, lower or no account fees, more locations near military bases, worldwide access to banking services, customer support to better serve service members abroad, military pay advance options, and housing assistance programs. Military banks and credit unions may also have their own nonprofits or volunteer initiatives that work to support military communities and their families. If you're a service member or veteran or related to one, there are several considerations to keep in mind when choosing a military-friendly financial institution. Some key factors to consider may include: Nationwide or global accessibility: If you travel or relocate frequently, having access to online banking tools and a large branch network is key. Favorable product rates and fees: Take a look at the products, services, rates, and fees offered by the military banks you're considering. It pays to do some comparison shopping across several institutions to make sure you're getting the best possible rates and low- or no-fee accounts. Deployment benefits: Many military banks and credit unions offer benefits specifically for active-duty service members, such as interest rate caps, debt relief for debt incurred before active duty, foreclosure protections, and more. Our grading system, collected and carefully reviewed by our personal finance experts, is comprised of over 200 data points related to FDIC- and NCUA-insured institutions to develop our list of the top five best banks and credit unions for military. We compared these institutions across key metrics, including fees, customer experience, product selection, account features and security, and environmental and social responsibility. The financial institutions on our list could earn a maximum of 72 points across all categories. Here's a closer look at the categories we considered: Fees and insurance: 20 points We evaluated each bank or credit union's fees for its most basic checking and savings account options, as well as overdraft fees and ATM fees. Financial institutions were awarded points for having no or low fees, greater fee transparency, and clear fee structures. Customer service experience: 25 points Personalized customer service is a key benefit of many banks and credit unions, though some are better than others. The institutions we evaluated were scored on metrics including access to a physical branch, mobile app ratings on Apple and Google storefronts, and methods for reaching customer service representatives. Banks and credit unions that offered phone, chat, and email or secured message contacts were awarded the maximum points in that category. We also examined each website for information clarity as part of the customer service assessment, evaluating each bank or credit union's website design, ease of navigation, language clarity, and whether customers could easily gather all the information needed to make an informed decision about any particular product. Institutions that offered more extensive ATM networks, credit monitoring tools, and educational resources earned extra points. Product selection and account features: 14 points Each financial institution we analyzed could earn one point per product for each of the following: Checking accounts Savings accounts High-yield savings accounts Money market accounts Share certificates Mortgages Personal loans Auto loans Home equity lines of credit We also looked at the speed of ACH transfers and gave points for same- or next-day transfers, early access to paychecks, Zelle as a service, and being part of FedNow — the Federal Reserve's instant payment service. Security: 10 points We carefully considered each bank or credit union's security measures to protect your money and sensitive information. We looked at factors such as multifactor authentication, website encryption, alerts for suspicious activity, zero fraud liability, and whether each institution had a dedicated online security page or hub. Environmental and social responsibility: 3 points Many consumers consider a financial institution's carbon footprint and philanthropic efforts before deciding who to bank with. As such, banks and credit unions that have dedicated pages to their philanthropic efforts and environmental goals and have pledged to reach net zero CO2 emissions by 2050 scored up to 3 points for doing so.
Yahoo
29-01-2025
- Business
- Yahoo
10 best credit unions of 2025
When deciding who to bank with, you aren't limited to just banks — you might find that a credit union is a better fit. Credit unions typically offer similar products and services to traditional banks. However, they're owned and operated by members, which often translates to fewer fees, competitive interest rates, and more personalized service. We compared the top NCUA-insured credit unions with a broad field of membership and evaluated key metrics such as membership eligibility requirements, fees, customer experience, product choice, account features, and each credit union's commitment to environmental and social responsibility. (See our full methodology here.) The following is a look at our ranking of the 10 best credit unions for 2025. Read on to learn more about each credit union, why they made our list, and how to join. Pentagon Federal Credit Union, or PenFed, serves more than 2.9 million members globally. It offers checking and savings accounts, credit cards, auto loans, home loans, and more. PenFed scored the maximum number of points in our fees and insurance categories thanks to its lack of monthly account fees and overdraft protection options. It also scored the highest number of points in our product selection and account features category for its long list of accounts and products, early paycheck services, and Zelle capabilities. Unlike many credit unions, PenFed has an open charter. Anyone is eligible to become a member of PenFed by opening a share account. Alliant Credit Union is an online-only, Illinois-based financial institution with more than 900,000 members across the globe. Alliant scored the second spot on our list for its comprehensive offering of products and services, as well as fee-free accounts and robust security features. Alliant currently offers checking and savings accounts, credit cards, certificates of deposit (CDs), lending services, and more. Though it doesn't have any branches, Alliant does belong to a network of more than 80,000 surcharge-free ATMs. It also offers phone, chat, and secure messaging support in the evenings and on weekends. To join Alliant, you must be a current or retired employee from one of its partner businesses or organizations, be a domestic partner or immediate family member of a current Alliant member, or live or work in one of the communities near its corporate headquarters in Chicago (see a list of eligible communities to find out if you qualify). If you don't qualify for membership under these criteria, you can become an Alliant Credit Union Foundation digital inclusion advocate, which makes you eligible for an Alliant Credit Union membership. The foundation awards grants for educational and digital inclusion efforts nationwide. Alliant Credit Union will make a one-time $5 contribution to the foundation on your behalf. Quorum Federal Credit Union provides checking and savings accounts, home loans, credit cards, student loans, and more to over 65,000 members. This credit union made our list thanks to a number of perks available to customers, including access to a network of more than 90,000 surcharge-free ATMs, fee-free account options, and comprehensive security features. To join Quorum Federal Credit Union, you must be affiliated with one of Quorum's select employee groups (SEGs), or have a friend or family member who currently works for or is retired from a select employee group (see a full list of eligible SEGs here). If you don't belong to any of those groups and aren't related to someone who is, you can still gain eligibility by joining the American Consumer Council (ACC). Joining is free and automatically qualifies you for Quorum membership. Consumers Credit Union is an Illinois-based credit union that offers a variety of deposit accounts, loans, business banking products and services, and more. This credit union made our top 10 list for having no monthly fees, a large surcharge-free ATM network, and access to important account features such as early access to paychecks, multi-factor authentication for added security, and quick and easy payments via Zelle. Additionally, if your goal is to grow your savings, Consumers Credit Union offers some of the highest interest rates available today. In particular, its rewards checking account pays up to 5.00% APY and its 9-month share certificate offers 4.75% APY. Read more: What is a share certificate? Anyone can join Consumers Credit Union by joining the Consumers Cooperative Association and paying a one-time membership fee of $5.00, which Consumers Credit Union may reimburse. Connexus Credit Union serves more than 475,000 members across the country, offering fee-free accounts with low or no minimum opening deposit requirements. Connexus also stood out for its mobile app, which has an average rating of 4.7 stars on both the Apple Store and Google Play. Customers can use the app to pay bills, deposit checks, transfer money between banks, and access a number of financial health tools to get more insight into how their money habits are impacting their financial goals. Connexus also ranked favorably in our environmental and responsibility category for its philanthropic program, Connexus Cares, which gives back to the communities Connexus serves through volunteering, donation matching, and more. Read our full review of Connexus Credit Union Anyone can join Connexus Credit Union by becoming a member of the Connexus Association through a one-time $5 donation. You also qualify for membership if you live in one of the eligible communities or counties that Connexus serves, are related to an existing member, or belong to an eligible group or organization. Navy Federal Credit Union, commonly referred to as Navy Fed, was established in 1933 and has since grown to serve 14 million members belonging to the Department of Defense, Army, Marine Corps, Space Force, and Coast Guard, as well as veterans and their families. Navy Fed offers personal and business products and services, including checking and savings accounts, credit cards, loans, and more. Navy Federal made our list of top credit unions for its stellar customer service rating, large network of physical branches and fee-free ATMs, and around-the-clock customer service. Customers who wish to speak to a representative can do so at any time via telephone, chat, secure message, mail, and even social media. Read more: USAA vs. Navy Federal Credit Union: Which is better for military banking needs? All branches of the military, veterans, Department of Defense employees, and their immediate family members are eligible to join Navy Fed. Service Credit Union's history dates back to 1957 when it was established to support military personnel and their families. It has since grown to serve more than 300,000 members. Service Credit Union offers personal and business banking products and services, including checking and savings accounts, business and commercial loans, home loans, and auto loans. This credit union made our list because of its fee-free account options, large network of branches and ATMs, and wide variety of products and services. This credit union also boasts a strong mobile app rating; users can take advantage of remote check deposit capabilities, subscription management tools, budgeting tools, bill pay, Zelle, and more. Additionally, members of the military can qualify for special savings opportunities, such as the Deployed Warrior Savings program, which offers 10% APY on deposits up to $10,000 for members currently serving active duty in a combat zone. Membership with Service Credit Union is open to active duty military, veterans, and their families, as well as current and former employees of the Department of Defense and their families. Membership is also available to members of Service Credit Union's select employer groups. If you don't fall into any of these categories, you can still join Service Federal CU by becoming a member of the ACC and using the promo code 'Service' to join for free. You can also join the Financial Fitness Association (FFA) for membership eligibility. Andrews Federal Credit Union operates locations in Maryland, Virginia, Washington D.C., and New Jersey. It also has locations in the Netherlands, Belgium, and Germany. It offers personal and business checking and savings accounts, as well as loans, credit cards, and investment products. Andrews FCU made our list for its fee-free accounts, surcharge-free ATMs and ATM rebates, and tools to help customers better manage their money, such as free FICO scores, financial calculators, and receipt management tools. To join Andrews Federal Credit Union, you must belong to a Select Employee Group or become a member of the ACC. Global Credit Union serves more than 750,000 members all over the world, operating more than 5,500 shared branches and 55,000 surcharge-free ATMs. It offers checking and savings accounts, loans, insurance products, financial planning services, and business banking. We chose Global Federal CU for its low-cost checking and savings accounts that don't pose any minimum opening deposit requirements. Global Credit Union also ranked highly thanks to its mobile app, which has an average rating of 4.7 stars across both mobile storefronts. People who live, work, worship, or attend school in Alaska, Washington, California's San Bernardino County, Arizona's Maricopa County, and Idaho's Kootenai County can join Global Credit Union, along with their immediate family members. Membership is also available to anyone employed by the Department of Defense (anywhere in the world). First Technology Credit Union — commonly referred to as First Tech — was founded in 1952 and serves more than 600,000 members. Its products and services include rewards checking and savings accounts, share certificates, individual retirement accounts, business accounts, credit cards, and personal loans. First Tech took the final spot on our list for its fee-free account options, ATM rebates, 24/7 customer service, and rewards account offerings. You can join First Tech if you work for one of its 900 partner organizations, are related to or live with a current First Tech member, work for the State of Oregon, live or work in Lane County, Oregon. You can also join the credit union by becoming a member of the Computer History Museum or the Financial Fitness Association, which can be done when filling out your online application. A credit union is a member-owned financial institution that operates similarly to a bank but with a focus on serving its members rather than generating profits for shareholders. Credit unions offer a variety of personal and business deposit accounts such as checking, savings, money market, and share certificates, as well as loans, mortgages, credit cards, and more. Read more: What is a credit union, and how do you join one Unlike banks, which are open to anyone, credit unions have eligibility criteria that members must meet to join. Those requirements vary depending on the credit union. Members are also owners and have a say in how the credit union is run, including voting for board members and policy changes. Read more: 7 credit unions anyone can join Share savings accounts are a popular type of account offered by credit unions that function similarly to a traditional savings account. When you deposit money in a share account, it represents your 'share' of ownership in the credit union. Read more: What is a share savings account? Credit unions offer their own versions of CDs, known as share certificates. These accounts generally work the same way that traditional CDs do. Read more: What is a share certificate? The National Credit Union Administration (NCUA) is a federal agency that regulates, supervises, and insures credit unions in the United States. Its has a similar function as the Federal Deposit Insurance Corporation (FDIC), the agency that insures bank deposits. Read more: What is the NCUA, and how does it work? Unlike banks, credit unions are not-for-profit, member-owned institutions. Even so, credit unions must generate revenue in order to continue operating. Common ways credit unions make money include charging interest on loans, charging fees, and other activities. Read more: How do credit unions make money? Both credit unions and banks are generally safe thanks to federal regulations and insurance, but credit unions have a reputation for being the safer option due to their non-profit structure and conservative lending and investing practices. Read more: Are credit unions safer than banks? It's less common for credit unions to fail than banks, but it's not impossible. This can happen when a credit union becomes insolvent, meaning it can no longer meet its financial obligations or maintain sufficient reserves. Read more: Can credit unions fail? Banks and credit unions tend to offer similar products and services but have their own unique business models. Credit unions are nonprofit organizations that are member-owned, which means that their customers have a say in how the credit union is run. Banks, on the other hand, are for-profit institutions that generate profit for shareholders. This can impact the types of products available, rates, fees, and more. Read more: Credit union vs. bank: Which is right for you? Our grading system, collected and carefully reviewed by our personal finance experts, comprises over 600 data points for more than 20 NCUA-insured credit unions to develop our list of the top 10 best credit unions. We compared these institutions across key metrics, including membership costs, fees, customer experience, product selection, account features and security, and environmental and social responsibility. The credit unions on our list could earn a maximum of 82 points across all categories. Here's a closer look at the categories we considered: Fees and insurance: 25 points We evaluated each credit union's fees for its most basic checking and savings account options, as well as overdraft fees and ATM fees. Credit unions were awarded points for having no or low fees, greater fee transparency, and clear fee structures. We also rewarded financial institutions that offered a wide field of membership and/or offered potential members the opportunity to become eligible to join in exchange for a donation to a charitable organization. Customer service experience: 30 points Personalized customer service is a key benefit of credit unions, though some are better than others. Credit Unions were scored on metrics including access to a physical branch, mobile app ratings on Apple and Google storefronts, and methods for reaching customer service representatives. Credit unions that offered phone, chat, and email or secured message contacts were awarded the maximum points in that category. We also examined each website for information clarity as part of the customer service offering assessment. This subjective assessment evaluated each credit union's website design, ease of navigation, language clarity, and whether customers could easily gather all the needed information needed to make an informed decision about any particular product. We also awarded points to credit unions that offered more extensive ATM networks, credit monitoring tools, and educational resources. Product selection and account features: 14 points Each credit union we analyzed could earn one point per product for each of the following: Checking accounts Savings accounts High-yield savings accounts Money market accounts Share certificates Mortgages Personal loans Auto loans Home equity lines of credit We also looked at the speed of ACH transfers and gave credit unions points for same- or next-day transfers, early access to paychecks, Zelle as a service, and being part of FedNow — the Federal Reserve's instant payment service. Security: 10 points We carefully considered each credit union's security measures to protect your money and sensitive information. We looked at factors such as multi-factor authentication, website encryption, alerts for suspicious activity, zero fraud liability, and whether each credit union had a dedicated online security page or hub. Environmental and social responsibility: 3 points Many consumers consider a credit union's carbon footprint and philanthropic efforts before deciding on a particular institution. As such, credit unions that have dedicated pages to their philanthropic efforts and environmental goals, and have pledged to reach net zero CO2 emissions by 2050, scored up to 3 points for doing so.
