Guide to Federally Chartered Credit Unions in California

Learn about the advantages and disadvantages of government chartered credit unions in California

According to the National Credit Union Administration (NCUA), a governmental chartered credit union is a "financial cooperative chartered by the federal government and owned by its members. Surplus income is returned to members in the form of dividends." A federal credit union has more protections than other types of credit unions. Examples include more audits of financial records, mandatory reserves to offset uncollectible loans, control of investments of surpluses and annual investigations by the NCUA. The National Credit Union Share Insurance Fund (NCUSIF) bonds accounts in CA federal credit unions up to $100,000. The main disadvantage of a credit union is that membership is limited to groups of people with a common bond such as the same employer, association or area of residence.

I recommend: Visit the NCUA website (part of the government entity Pueblo). Learn how the NCUSIF protects your credit union monetary deposits.

Meet eligibility requirements to join a California federally chartered credit union

Visit a prospective credit union's website or call to find out the requirements for joining. Requirements vary wildly based on the credit union's federal charter. For example, the California Feminist Federal Credit Union is restricted to volunteers, staffers or contributors to various Women's Health Centers in California or charitable organizations sponsored by the Women's Coalition of San Diego County.

I recommend: See if you meet eligibility requirements for the California Feminist Federal Credit Union. You'll find the criteria and forms by clicking the "Easy to Join" link.

Compare and contrast the major players among federally chartered credit unions in CA

Here is a small listing of some other California federally chartered credit unions. The Antelope Valley Federal Credit Union allows employees and students of the Antelope Valley School District, local U.S. Postal Service employees and certain industry workers in the Antelope Valley Area to join. This organization offers a variety of loans (auto, home, personal, RV and credit cards), checking and savings accounts, savings bonds and online banking. The Burbank City Federal Credit Union is open to persons with jobs in Burbank; those who belong to the local public library and/or historical society; or those who work with certain employers. This credit union offers a variety of loans, certificates of deposit, IRAs and checking and saving accounts.

I recommend: Visit the National Credit Union Administration to search for federally chartered credit unions in California. See if you qualify to join the Antelope Valley Federal Credit Union or the Burbank City Federal Credit Union.