Guide to Federally Chartered Credit Unions in Texas

Learn about the advantages and disadvantages of Texas 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 "regular" 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 primary 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 Texas federally chartered credit union

Visit a prospective credit union's website or call to find out the requirements for joining. Requirements vary widely based on the credit union's federal charter. For example, the Dallas Credit Union is restricted to those who live, work, study or worship in the Downtown Dallas area and their immediate family members.

I recommend: Visit the Dallas Credit Union to see if you meet its eligibility requirements.

Compare and contrast a few players among federal credit unions in TX

The Greater Texas Federal Credit Union is one of the largest federally chartered credit unions in the state. It allows "persons who live, work, worship or attend school in, and do business in and other legal entities located in the Bryan-College Station, Bastrop, East or Central Travis County, Central Hidalgo County, Central Harris County, and portions of Tarrant and Dallas County areas" to join. This organization offers a variety of loans (auto, home, personal, student and credit cards), checking and savings accounts, credit counseling and online banking. The Texas Government Employees Federal Credit Union is open to government employees who live or work in Travis County or the city of Austin; those living on military bases near Austin; friends of the Austin Public Library; and members of specific companies, associations and community groups. This credit union offers services not only to individuals, but also to businesses and offers online banking, loans, traveler's checks and servic

I recommend: Visit the National Credit Union Administration to search for federally chartered credit unions in Texas. See if you qualify to join the Greater Texas Federal Credit Union or the Government Employees Federal Credit Union.