Best Credit Union Savings Accounts (original) (raw)

Credit unions are well known for their member-focused approach, low fees, and higher-than-average APYs, especially for savings accounts. However, most credit unions have strict eligibility requirements for membership, so not everyone will qualify for these rates.

In this article, we at the MarketWatch Guides team will go over our picks for the best savings accounts from credit unions, along with their best features and what they bring to the table for members.

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Featured Savings Accounts

FEATURED

Lending Club

4.3

APY 3.50%

Bonus N/A

Min. Deposit Amount $0

Earn up to 4.75% APY with $250+ deposits per month

SoFi Checking + Savings

4.8

APY 3.80%

Bonus Up to $300

Min. Deposit Amount $0

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

UFB Portfolio Savings

4.6

APY 4.01%

Bonus N/A

Min. Deposit Amount $0

Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%

Discover

4.6

APY 3.70%

Bonus N/A

Min. Deposit Amount $0

Our Picks for the Best Credit Union Savings Accounts

For our list of the best credit union savings accounts, we reviewed 22 of the country’s largest regional, national and online credit unions. We then selected the institutions that earned the highest scores in our savings account review, which evaluates factors such as APY, fees and deposit requirements. You can see how we score each credit union here.

Credit Union Savings Account Star Rating Best Savings Account Option APY* Minimum Opening Deposit Monthly Fee
First Tech Federal Credit Union 4.5 First Tech Rewards Savings 4.00% 25∣25 25∣0
Consumers Credit Union 4.3 Smart Saver 3.00% 5∣5 5∣0
Alliant Credit Union 4.2 High-Rate Savings 3.10% 25∣25 25∣0
Quorum Federal Credit Union 4.2 HighQ Savings 3.75% 0∣0 0∣0 with e-statements or $10 with paper statements

*APY accurate as of November 15, 2024. The highest rate may apply to a certain balance tier.

First Tech Federal Credit Union

Why We Like First Tech Federal Credit Union

First Tech Federal Credit Union currently offers five savings accounts, including basic, high-yield and youth savings accounts. Members benefit from no monthly fees across all savings accounts, along with online and mobile banking.

The First Tech Rewards Savings can earn a high APY if certain requirements are met, which include:

Pros

Generous APY: First Tech Rewards Savings provides a high APY if meet qualifications

Few fees: No monthly fees for savings accounts

Large ATM network: Access to 30,000 co-op ATMs with no fees

Cons

Hard to earn APY: Must meet strict requirements to earn the high qualified rate for the First Tech Rewards Savings, including transaction minimums

Membership Requirements

To become a member of First Tech Federal Credit Union, you must meet one of the following requirements:

Keep in mind that once your account is open, you need to keep it active or an inactivity fee may apply, which can be up to $5 per month.

Consumers Credit Union

Why We Like Consumers Credit Union

Consumers Credit Union (CCU), based in Illinois, offers several savings account options that cater to various savings goals, from general savings to health savings accounts. Members have access to over 30,000 ATMs without fees and 5,000 shared branches.

With the Smart Saver account, you can earn a high APY if you meet certain qualifications, which include:

Note that you must also link your savings account to a CCU Checking account or you will only earn 0.25% APY.

Pros

Easy membership: Anyone can qualify for CCU membership with a one-time $5 fee

Generous checking APY: High 3% APY potential on a linked Free Rewards Checking account

Plenty of ATMs: Access to nearly 30,000 co-op ATMs without fees

Cons

Punitive APY rules: Several requirements must be met to earn the high APY on the Smart Saver account. If you deposit more than $1,000, you’ll actually lose the high APY.

Low standard rates: Standard savings account rates are relatively low. If you fail to meet the credit union’s strict rules, you’ll only earn a small amount.

Membership Requirements

Joining Consumers Credit Union is easy and straightforward since membership is open to anyone. To become a member, you’ll need to pay a one-time 5feetothecreditunion’ssponsor,ConsumersCooperativeAssociation.You’llalsoneedtoopenaMembershipShare/Savingsaccount,whichrequiresaminimuminitialdepositof5 fee to the credit union’s sponsor, Consumers Cooperative Association. You’ll also need to open a Membership Share/Savings account, which requires a minimum initial deposit of 5feetothecreditunion’ssponsor,ConsumersCooperativeAssociation.You’llalsoneedtoopenaMembershipShare/Savingsaccount,whichrequiresaminimuminitialdepositof5 and a minimum balance of $5.

Alliant Credit Union

Why We Like Alliant Credit Union

Alliant Credit Union offers several savings accounts, all of which earn a high APY. But our top pick is its High-Rate Savings account, which earns the top rate on average daily balances of $100 or more. This is a much easier APY requirement to meet than other accounts on this list, which have transaction or deposit requirements.

Pros

Easy to earn top APY: Competitive APY with a $100 minimum account balance

Organized savings: Can create up to 19 supplemental accounts for goal-specific savings

Few fees: No monthly fee with eStatement enrollment

Plenty of ATMs: Access to more than 80,000 ATMs without fees

Cons

Paper statement fees: $1 fee for paper statements

Minimum balance requirement: Requires maintaining a $100 minimum balance to earn the APY

No branches: Online-only credit union without physical locations

Membership Requirements

To join Alliant Credit Union, you must:

If you’re unable to qualify through one of the above options, Alliant offers membership if you make a one-time $5 donation to the Alliant Credit Union Foundation.

Quorum Federal Credit Union

Why We Like Quorum Federal Credit Union

Quorum Federal Credit Union offers high-yield savings accounts and term savings accounts, which are similar to certificates of deposit (CD).

Its HighQ Savings account stands out for having a high APY and no minimum balance requirement. This account is ideal for savers looking to maximize their earnings without the burden of maintaining specific balance requirements or navigating complex fee structures. There’s also no monthly fee if you enroll in eStatements, along with access to over 100,000 ATMs without fees.

Pros

Easy to earn APY: High APY with no minimum balance to earn the APY

No balance requirements: No minimum balance required to open or maintain the account

Few fees: No monthly fees with eStatement enrollment

Lots of ATMs: Access to over 100,000 ATMs without fees

Cons

Paper statement fee: $10 monthly fee if receive paper statements

Few choices: Limited savings account options compared to other credit unions

Membership Requirements

To become a member, you need to meet one of the following requirements:

What Is a Credit Union Savings Account?

A credit union is a not-for-profit financial institution owned by its members – your savings account is a “share” in the organization, and you get to vote on its board of directors. Banks, on the other hand, are for-profit companies. Like banks, credit unions tend to offer a variety of financial products, including loans, checking accounts and savings accounts.

Credit union savings accounts tend to come in basic or high-yield options. They typically don’t have a monthly service fee and they may offer low account fees in general.

To open a credit union savings account, you’ll need to be a member. Unlike banks, which anyone can use, credit unions require you to meet certain criteria to join, which are often based on geographical location, employment, or other affiliations.

Make sure any credit union you’re interested in is protected by the National Credit Union Administration (NCUA), which insures accounts up to $250,000 per depositor per account, matching the security that the Federal Deposit Insurance Corp. (FDIC) offers bank customers. This insurance means that customers’ deposits are safe even if the credit union faces financial difficulty or collapse.

Types of Credit Unions Savings Accounts

Credit unions offer many of the same financial products as banks. In terms of savings accounts, a credit union may offer:

Pros and Cons of Credit Union Savings Accounts

Credit unions may not have the national recognition of large banks, but they compensate for this with benefits tailored to the specific communities or groups they serve. This community-centric approach ensures that, while they might operate on a smaller scale, their impact on individual financial growth is significant.

Plus, many credit unions offer savings accounts with APYs that surpass the FDIC’s national average for savings accounts, which is currently 0.46%.

Pros

Not-for-profit: Credit unions are member-owned, leading to potentially lower fees and better interest rates as profits are returned to members.

Wide range of products: Credit unions typically offer a range of savings options, including high-yield and specialty savings accounts, catering to diverse financial needs.

Safe deposits: Similar to FDIC insurance at banks, the NCUA insures deposits up to $250,000.

Hometown feel: The community-centric nature of credit unions often results in more personalized customer service.

ATM access: Many credit unions offer shared ATM and branch access through a co-op network.

Cons

Membership criteria: Most credit unions have restrictive membership requirements based on geography, employment or certain affiliations.

APY is not the highest: While the APYs on credit union savings accounts are competitive, they may not be as high as the APYs offered by some online banks.

Limits on APY: Some credit unions require members to meet strict qualifications to earn the highest savings account rate.

Fewer branches: Compared to national banks, some credit unions might have fewer physical locations and ATMs, which could be less convenient for some members.

How To Choose the Best Credit Union Savings Account

To choose the best credit union savings account, consider your financial goals and needs. But here are some factors to consider:

Assess the membership requirements of a credit union to ensure you qualify. Membership qualifications may be based on your location, employment or affiliations.

Consider a credit union’s accessibility, including whether there are branches or ATMs in your area, as well as digital banking options for managing your account remotely.

Look for credit unions with user-friendly mobile apps that provide a secure and convenient way to manage your funds, check balances and perform transactions.

Compare the interest rates and fees of different savings accounts to find the most favorable terms that will help your savings grow efficiently. Also, check for fees thoroughly to avoid hidden fees. For instance, paper statement, non-sufficient funds or inactivity fees can be common.

The Bottom Line: Is a Credit Union Savings Account Right for You?

A credit union savings account can be an appealing choice for those looking for a more personalized banking experience, competitive rates and a community-focused approach. Unlike banks, credit unions are member-owned, which often results in lower fees and better APYs on savings accounts.

FAQ: Credit Union Savings Account

Credit unions may be a better option than traditional banks for savings accounts if you meet eligibility requirements and value lower fees and a community-focused approach to banking. Credit unions may also offer higher savings account rates than many banks.

Our picks for the credit unions with the best savings rates are First Tech Federal Credit Union, Consumers Credit Union, Alliant Credit Union and Quorum Federal Credit Union.

The typical membership requirements for credit unions include living or working in a specific location, being employed with a certain business, family ties to current members or membership in a partner organization.

Methodology

Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.

Savings and money market accounts

The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.

High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.

Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.

Banking experience and access

Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.

35% Savings and money market accounts

30% Checking accounts

20% Certificates of deposit

15% Banking experience and access

Savings and money market accounts

The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.

Checking accounts

High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.

Certificates of deposit

Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.

Banking experience and access

Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.

All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank

_*Rates accurate as of November 15, 2024

**Data accurate at time of publication

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.