Guide to Federally Chartered Credit Unions in New Jersey

Learn about the advantages and disadvantages of New Jersey 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 surplus money 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 federal credit union in NJ

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 North Jersey Federal Credit Union is restricted to those who live, worship, work, attend school or conduct regular business in Passaic, Bergen, Essex or Union Counties, along with the city of Newark.

I recommend: See if you meet eligibility requirements for the North New Jersey Federal Credit Union.

Compare and contrast the major players among federal credit unions in New Jersey

Here is a small listing of some other New Jersey federally chartered credit unions. Affinity Federal Credit Union allows members of hundreds of various New Jersey organizations to join. Upon joining the Affinity Federal Credit Union, New Jersey residents receive multiple benefits such as banking, loans, mortgages, retirement advice, insurance and business services. The South Jersey Federal Credit Union is open to persons who live, work, attend school, worship or do business in these New Jersey municipalities: Atlantic City, Bridgeton, Camden, Lawnside, Millville, Pleasantville, Salem and Vineland. This credit union offers a variety of loans, IRAs, online banking and checking and saving accounts.

I recommend: Visit the National Credit Union Administration to search for federally chartered credit unions in New Jersey. See if you qualify to join the Affinity Federal Credit Union or the South Jersey Federal Credit Union.