Guide to Federally Chartered Credit Unions in Massachusetts

Learn about the advantages and disadvantages of Massachusetts federally chartered credit unions

According to the National Credit Union Administration (NCUA), a federally 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 "normal" credit unions. Examples include more audits of financial records, mandatory reserves to offset uncollectible loans, control of investments of surpluses and annual exams by the NCUA. The National Credit Union Share Insurance Fund (NCUSIF) bonds accounts in 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 deposits.

Meet eligibility requirements to join a Massachusetts federally chartered credit union

Visit a prospective credit union's website or call to find out the requirements for joining. Requirements vary dramatically based on the credit union's federal charter. For example, the Cambridge Teachers' Federal Credit Union is restricted to permanent employees of the school system and members of the School Committee of the City of Cambridge, Massachusetts, plus employees of certain charter, parochial and private schools.

I recommend: See if you meet eligibility requirements for the Cambridge Teachers' Federal Credit Union.

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

Here is a small listing of some other Massachusetts federally chartered credit unions. The Federal Reserve Boston Credit Union allows any Federal Reserve Bank of Boston employee, retired employee or immediate family member (spouse, child, sibling, parent, grandparent or grandchild) to join. This organization offers a variety of loans (auto, home, personal and credit cards), checking and savings accounts, savings bonds, traveler's checks and online banking. The Norfolk Community Credit Union is open to persons who live, work, attend school, worship or own a business in these 10 Massachusetts municipalities: Bellingham, Foxboro, Franklin, Medfield, Medway, Millis, Norfolk, Plainville, Walpole and Wrentham. This credit union offers a variety of loans, certificates of deposit and checking and saving accounts.

I recommend: Visit the National Credit Union Administration to search for federally chartered credit unions in Massachusetts. See if you qualify to join the Federal Reserve Boston Credit Union or the Norfolk Community Credit Union.