This post is sponsored by Make Your Money Matter in association with PSCU, though all views expressed are my own.

Having grown up an “Army brat,” and then living in Virginia where we have pretty much every kind of military base imaginable, I had heard of credit unions.  In particular, I was (vaguely) familiar with the Navy Federal Credit Union.  But I never looked into credit unions for myself, because I thought they were always tied to your employer.  Turns out that’s not necessarily the case!

What is a Credit Union?

A credit union is kind of like the banking equivalent of an electrical co-op.  Rather than being a big corporation, owned by shareholders, that you just happen to purchase services from, they are a member-owned cooperative organization.

“Credit unions offer all the products and conveniences you’d expect from a big bank, but unlike those big banks, credit unions are built around strengthening communities by providing low-interest loans and giving all their profit back to members, truly ‘making your money matter.  With membership, the money you deposit stays in the community – your dollar could become somebody’s college degree or a loan for a family’s first home – and it’s these types of reinvestments that draw local-minded consumers intent on consumption that keeps communities growing.”  — Fredda McDonald, Executive Vice President, PSCU (a leading provider of traditional and online financial services to credit unions)

Although a credit union is typically “only” open to members of certain organizations, these organizations may include other groups besides just employers, and membership is generally extended to family members.  This means that you might be eligible to join a local credit union even if your eligibility isn’t immediately obvious.

On average, credit unions offer lower interest rates on loans and higher interest returns on investments than “traditional” banks, as well as lower fees for checking accounts, ATM surcharges, overdrafts and stopped payments.

And in case you’re concerned that “local” might mean “inconvenient,” don’t be!  Many credit unions participate in shared branching networks, giving members thousands of additional access points.

Want to know more about credit unions? Visit MakeYourMoneyMatter.org.