How to choose the best credit union checking account

So, you've decided to open a new checking account with a credit union. Congratulations — you're on your way to better banking! Credit unions are known for offering lower fees and better interest rates compared to traditional banks while also providing more personalized customer service. This makes them a smart choice for those who want to save money and be treated like a valued member.

How do you choose the credit union for your checking account? Here are some factors to consider when making your decision.

What you’ll learn

• Identify your banking priorities
• Research membership requirements
• Evaluate account features
• Accessibility and convenience
• Security and customer support
• Community involvement
• Making the final decision

Identify your banking priorities

Before comparing credit unions, it's important to identify your banking priorities. What do you value most in a checking account? Is it low fees, high interest rates, mobile banking capabilities and/or a wide network of ATMs? Knowing what features are most important to you will help narrow down your options and simplify the decision-making process. Consider the following.

• Transaction frequency: Assess how often you perform transactions like deposits, withdrawals or bill payments.
• ATM network: Determine how vital it is to have a large network of ATMs, especially if you travel frequently.
• Interest vs. cost: Consider whether earning interest on your checking account is more important than minimizing fees.
• Online and mobile banking: Think about how important it is for you to have access to online banking features, such as mobile deposits and transfers.
• Special features: Identify any additional features you may need, like overdraft protection or the ability to earn rewards.

Carefully considering these factors will help you narrow down your options and find a credit union that aligns with your banking priorities.

Research membership requirements

Unlike traditional banks, credit unions have membership requirements that determine who can join. Many require you to live in a specific area, work for a particular employer, or be affiliated with a specific organization, while others may have broader eligibility criteria.

In some cases, credit unions will allow you to pay a small membership fee to join if you don't meet their membership requirements. For example, if you don't meet other eligibility criteria, Alliant Credit Union allows you to become eligible through a one-time $5 contribution that we will make on behalf of you to the Alliant Credit Union Foundation.

Take the time to research and understand the membership requirements of different credit unions in your area. This will help you determine which ones you are eligible to join and further refine your available options.

Evaluate account features

Credit union checking accounts come in various types, each catering to different needs. Whether you're looking for a basic account with minimal fees, a high-yield account that earns interest, or a specialized account for teenagers, it's important to evaluate the features that matter most to you. The following are some key features to examine when choosing a checking account.

• Interest rates and average percentage yield (APY): Look at the interest rates offered on checking accounts. Higher APYs mean your money grows faster, which can be a key consideration if you maintain a higher balance.
• Fee structure: Review the fee structure, including monthly maintenance fees and ATM charges. Some credit unions may offer accounts with minimal or no fees.
• Minimum balance requirements: Some credit unions may require a minimum balance in your checking account to avoid fees. Make sure you can meet these requirements before opening an account to avoid fees. If you can’t, looking for an account with no or lower balance requirements might be better.
• Special perks: Check for additional benefits, such as free checks, ATM fee reimbursements or loyalty rewards that can make the account more appealing.

These are the core elements that will differentiate most credit union checking accounts. Some institutions include only a few of these features, while others may offer a more enticing combination. For example, Alliant's high-yield checking account has no monthly maintenance fees, no minimum balance requirements, no overdraft fees,⁶⁵ and offers a competitive APY. On top of all that, it even comes with bonus perks such as free checks and monthly ATM fee reimbursements.

Accessibility and convenience

Outside of the features that directly impact your wallet, it’s important to consider broader factors related to accessibility and convenience when choosing a credit union. Here are some things to keep in mind.

• ATM access: Consider close the credit union’s ATMs are to your home or work. Look for credit unions that are part of a large ATM network, as this can help you avoid unnecessary fees when traveling or in a pinch. For instance, the Alliant Visa^® contactless debit card is part of one of the largest surcharge-free ATM networks in the United States, offering access to over 80,000 ATMs nationwide.
• Digital banking features: Consider the quality of the credit union’s online banking services. Mobile apps, online bill pay, and mobile check deposits are must-haves for modern banking convenience. Also, check the app’s ratings and reviews to ensure it meets your expectations.

Security and customer support

Like a traditional bank, security and customer support are important factors to consider when choosing a credit union. Here are some things to look for:

• Deposit insurance: Make sure the credit union is federally insured by the National Credit Union Administration (NCUA), which protects deposits up to $250,000 per account.
• Customer service hours: Check if the credit union offers several contact channels as well as extended customer service hours, or 24/7 support. This can be especially helpful when you have urgent inquiries or need assistance outside of regular business hours.
• Fraud protection: Find out what measures the credit union has in place to protect against fraud and unauthorized use of your accounts. This might include features such as card lock, EMV chip technology, and alerts for suspicious activity.

It's also a good idea to read reviews or ask current members about their experiences with the credit union's customer support. You can research the credit union’s customer support reputation by checking reviews on websites like the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB). These reviews offer insights into how well the credit union handles member issues and complaints, giving you a better understanding of the service quality.

Community involvement

This is one area where credit unions really stand out from many other financial institutions. Credit unions are not-for-profit organizations that are owned and operated by their members, which means they have a vested interest in the communities they serve. They often establish partnerships or sponsor local events, charities and community initiatives.

If this type of connection and community involvement is important to you, it's worth finding out what kinds of programs and partnerships the credit union you are considering is involved in. 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.

Making the final decision

Once you have gathered all the necessary information, assess the strengths and weaknesses of each credit union. Focus on what’s most important to you, whether that’s ease of access, low fees, high interest rates, or active community involvement.

Before finalizing your decision, you'll also want to review all membership criteria and associated fees to help ensure you’re comfortable with the terms. At the end of the day, this is your financial future, and you want to choose a credit union that will help make it as bright as possible.

The Alliant advantage: Alliant is unlike any other financial institution—a digital credit union that wows our members. We’re boldly disrupting banking norms to do good for our members, employees and communities. Learn more.