8 benefits of having a checking account with a credit union

December 17, 2024 | Alliant Credit Union

Opting for a credit union for your checking account means choosing a banking experience that revolves around you. Credit unions are not-for-profit, member-owned institutions focused on meeting the financial needs of their community.

This structure can help credit unions offer better interest rates, lower fees, and a level of personal service that big banks can't match. When you bank with a credit union, you're not just a customer; you're a valued member.

Below are some of the top benefits of having a checking account with a credit union.

What you’ll learn

1. Lower fees for everyday banking

A big perk of a credit union checking account is the opportunity for lower fees. While many traditional banks charge monthly maintenance fees, credit unions usually keep these fees low or skip them entirely.

Take Alliant’s high-yield checking account as an example: It offers no monthly service fee (with e-Statements), requires no minimum balance and earns interest with at least one monthly electronic deposit. This approach to fee management makes credit union accounts a smart and cost-effective option for everyday banking.

2. Better interest rates on checking accounts

When you choose a credit union, you can take advantage of potentially higher interest rates on checking accounts. Unlike many banks that offer negligible interest on checking balances, credit unions often provide competitive rates that allow your money to grow steadily. This difference can be attributed to the credit union model, which aims to return profits to members in the form of better rates and lower fees.

These higher interest rates can make a difference, especially for members who keep larger balances in their checking accounts. The interest earned over time can compound and contribute significantly to any financial goal, whether it’s building an emergency fund or simply boosting your savings. This member-first approach ensures that your money works harder for you every day.

3. Overdraft protection with less stress

Overdrafts happen to the best of us — a miscalculation, a forgotten transaction or an unexpected expense can leave your account balance in the red. Most banks respond to these situations with steep overdraft fees, often averaging around $35 per incident. However, credit unions tend to take a more member-friendly approach, offering leniency and protection when these financial hiccups occur.

Alliant Credit Union has taken this commitment a step further by eliminating overdraft fees altogether on their checking and savings accounts. Members won’t be charged for overdrafts, non-sufficient funds (NSF) transactions, or transfers from linked savings accounts for overdraft protection. Alliant’s policy applies to all accounts, whether members maintain a high balance or not.65

This member-first approach ensures that overdraft protection behaves as it was meant to—a safety net, not a penalty.

4. Access to nationwide ATM networks

Access to your money should never be a hassle. Credit unions understand this, which is why many participate in extensive shared ATM networks. These large co-op networks offer members access to tens of thousands of fee-free ATMs across the nation at no additional cost.

With the Alliant Visa® contactless debit card, members can tap into a network of more than 80,000 fee free ATMs across the United States.59  To further enhance convenience, Alliant even provides a rebate of up to $20 per month for using out-of-network ATMs. This kind of accessibility helps ensure you have the flexibility to withdraw cash or manage accounts no matter where you are.

5. Community involvement and support

Credit unions are famous for their dedication to community development and support. Unlike large banks, which tend to focus more on profit margins than community needs, credit unions have a more personal way of giving back. You can see this in how they provide financial education and resources to underserved communities or sponsor local events and charities.

For example, the Alliant Credit Union Foundation is awarding $1 million in grants to promote digital inclusion and financial literacy for underserved communities nationwide, highlighting Alliant's commitment to its members and local communities.

6. Safe and insured accounts

When you deposit your money in a credit union, you can rest easy knowing that it's insured and protected. Credit unions are federally insured by the National Credit Union Administration (NCUA), which provides the same level of coverage as the FDIC does for banks. This means your deposits are insured up to $250,000 per individual account, helping ensure the safety of your hard-earned money.

7. Easy access to digital and mobile banking

Credit unions have stepped up their digital game to match or exceed the convenience of modern banking. Many credit unions now offer comprehensive online and mobile banking services that rival those of the biggest financial institutions — all while maintaining their personalized touch.

Alliant's mobile app showcases this commitment to digital excellence. The app includes features like mobile check deposit, account balance tracking, fund transfers and the ability to locate in-network ATMs.

8. Competitive loan and mortgage rates

Credit unions offer some of the most competitive deals on loans, mortgages and other credit products in the market. Due to their not-for-profit nature, credit unions can often afford to provide lower interest rates and flexible terms compared to many traditional banks. This means members can save a significant amount of money over the life of a loan, whether they’re financing a car, buying a home or consolidating debt.

Switching to a credit union could be your key to a more rewarding banking experience. With benefits like lower fees, higher interest rates and competitive loan products, it’s clear why many individuals are choosing credit unions over traditional banks. By becoming a credit union member, you’re not just opening a checking account; you’re joining a community that values your financial health.

Ready to make the switch? Alliant Credit Union is here to help you on your journey to better banking. Apply to join today and experience the difference of banking with an institution that truly has your best interests at heart. Think you’re not eligible to join? If you don't meet other eligibility criteria, Alliant Credit Union allows you to become eligible through a one-time $5 contribution that Alliant will make on your behalf to the Alliant Credit Union Foundation.


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