Credit unions offer a variety of advantages over big banks -- better customer service, lower interest rates on loans, lower bank fees, and higher interest rates on checking and savings accounts. There's a catch, of course, in that you have to be eligible for membership in order to set up an account. That being said, many credit unions have relaxed membership requirements in recent years.
Federal credit unions have good reputations in the world of banking, often offering great deals for members. Employees of the federal government and military have several great options available for banking. Below are two popular federal credit union choices with detailed membership requirements and benefits.
The Pentagon Federal Credit Union or "PenFed" basically allows anyone to join. If you're a member of the military, a US Government employee, an employee at an "eligible place of business" or an American Red Cross employee/volunteer, you can join.
Don't fit into one of the categories? Don't worry. Family members of any of the above can join, too. If all else fails, the bank allows membership for those who belong to the National Military Family Association or the Voices for America's Troops Foundation, available for a $20 one-time fee to any US citizen. Pentagon Federal's options for banking and lending are extensive, and the credit union offers some great online banking features to boot.
Navy Federal serves the Army, Marine Corps, Navy, Airforce and Department of Defense. To join, applicants must work for one of these organizations or be a family member of an eligible employee. While most credit unions extend memberships to immediate family only, Navy Federal allows grandparents and grandchildren to become members. If either of the above requirements fits your situation, take advantage of Navy Federal's great rates on everything from car loans to fixed interest credit cards. Fortune magazine ranked it one of the best places to work in 2008, and membership is at three million and growing. In early 2011, Navy Federal merged with the USA Federal Credit Union.