If you’re a business owner looking at banking options, credit unions might be worth considering. They often provide competitive products with lower fees and better interest rates compared to traditional banks. However, remember that membership requirements can be stricter, which is a key factor in picking the right credit union for your business.
I’ve reviewed six top credit unions, focusing on their features, fees, and pros and cons to help you find the best fit for your needs.
Best overall credit union for business accounts: Affinity Plus FCU
- Why it’s great: Affinity Plus stands out for its wide range of services, including competitive savings options and reward-earning debit cards. They also provide access to a large ATM network and cash services, making it ideal for businesses that need both digital and in-person banking.
- Membership requirements: You can join if you live, work, study, or worship in eligible regions, or through a $25 donation to the Affinity Plus Foundation.
- Fees: No monthly service fees and 20 cents per check after 50 checks.
Best for social entrepreneurs: Self-Help FCU
- Why it’s great: Self-Help FCU focuses on supporting underserved communities and offers flexible financing options. They provide small business loans starting at $15,000 and have the ability to waive monthly fees.
- Membership requirements: Open to individuals in specified communities or through a $5 donation.
- Fees: Monthly fee of $15, waivable with a balance of $25,000.
Best for military-affiliated owners: Navy Federal Credit Union
- Why it’s great: Navy FCU excels for military families and offers fee-free business checking accounts. Its extensive branch network and services make it a strong contender.
- Membership requirements: Limited to military service members, veterans, DoD personnel, and their families, with a $250 deposit required for businesses.
- Fees: No fees for basic checking, other accounts have varying fees.
Best for membership flexibility: Credit Union 1
- Why it’s great: Credit Union 1 offers scalable checking accounts and a range of services from cannabis banking to payroll processing. It’s a great option for small businesses that need flexibility.
- Membership requirements: Open to individuals based on field membership; a $5 donation can also grant membership.
- Fees: Fees vary from $10 to $50 depending on the checking account type, all waivable with minimum balances.
Best for insurance services: First Tech FCU
- Why it’s great: For businesses needing insurance, First Tech provides a wide range of options, from liability to workers’ compensation. They also offer low-fee business accounts.
- Membership requirements: Eligibility includes employees of partner companies or living in specific areas.
- Fees: Checking account fees range from $6 to $15, with waivable options.
Best for interest-earning accounts: Bethpage Federal Credit Union
- Why it’s great: Bethpage is perfect for businesses wanting to earn interest while keeping fees low. Their checking accounts have no monthly fees or transaction limits.
- Membership requirements: Open to anyone with a $5 deposit.
- Fees: No monthly fees or minimum balance requirements.
Key Features to Compare
When you’re weighing credit unions for a business account, consider the membership requirements, account features, fees, and customer service. Some credit unions might have limited branch access, so check their ATM and service networks.
Tips for Selecting a Credit Union
- Look for potential fees beyond monthly charges, including ATM fees and overdraft fees.
- If your business operates nationwide, explore credit unions with shared branching networks for easier access.
- Credit unions often participate in cooperative ATM networks, providing access to thousands of surcharge-free ATMs.
Understanding Credit Unions vs. Traditional Banks
- Ownership: Credit unions are member-owned for better rates and service, while banks cater to shareholders.
- Fees and rates: Credit unions generally have lower fees and better loan rates.
- Customer service: Credit unions offer more personalized service but might have a limited number of branches.
If low fees and good service are your priorities, a credit union might be your best bet. For wider access, a traditional bank could be the better choice.
Alternatives
Consider fintech companies for your business account. For instance, U.S. Bank offers a Silver Business Checking account with no monthly fees and free transactions.
FAQs
Is opening a business account with a credit union a good idea?
Yes. They typically offer lower fees, better interest rates, and personalized service.
What are the downsides?
Limited branch access and stricter membership requirements might be drawbacks, but some credit unions make joining easier with small donations.
