Banks get the job done, but government credit unions in New York can do it better. A credit union is owned by its depositors, meaning you (the account holder) have a say in how to run the business. Each member of a credit union gets one vote at the annual election of the Board of Directors.
Credit unions are non-profit entities. This lets them operate at a lower cost than traditional banks. Credit unions pass savings to you in the form of higher savings account rates and lower loan interest rates. When choosing a New York federal credit union, consider:
1. The advantages of federally chartered credit unions in New York over traditional credit unions
2. Eligibility requirements to join New York federal credit unions
3. Major players among federal credit unions in New York
Action Steps
The best contacts and resources to help you get it done
Learn about the advantages and disadvantages of New York 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 "average" credit unions. Examples include more frequent 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 New York federally chartered credit union
Visit a prospective credit union's website or call to find out the requirements for joining. Requirements vary greatly based on the credit union's federal charter. For example, the Actors' Federal Credit Union is restricted to actors and actresses from one of 75 member dramatic organizations (and their immediate family members).
I recommend: See if you meet eligibility requirements for the
Actors' Federal Credit Union.
Compare and contrast a few players among federally chartered credit unions in NY
Here is a small listing of some other New York federally chartered credit unions. The Alternatives Federal Credit Union allows residents of the city of Ithaca and the following counties to join: Tompkins, Cayuga, Chemung, Cortland, Seneca, Schuyler and Tioga. This organization offers a variety of loans (auto, home, personal and credit cards), checking and savings accounts, savings bonds, credit counseling and online banking. The State Employees' Federal Credit Union is open to employees (current or retired), members or volunteers for the state of New York plus residents of 29 New York cities. This credit union offers a variety of loans, certificates of deposit, checking and saving accounts and insurance policies.
I recommend: Visit the
National Credit Union Administration to search for federally chartered credit unions in New York. See if you qualify to join the
Alternatives Federal Credit Union or the
State Employees' Federal Credit Union.
Tips & Tactics
Helpful advice for making the most of this Guide
- Shop around. As a resident or business owner in the state of New York, you may qualify to join more than one federally chartered credit union in New York. Make sure to compare interest rates for loans, savings and checking accounts to get the best deal.
The official source of Federally Chartered Credit Unions in New York is
the Federally Chartered Credit Unions in New York page at Business.com
Related Resources from Business.com
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