Based in Washington, D.C., provides financial products and services to employees of the Department of State and select employee groups.
www.sdfcu.org
Federally chartered credit unions (also called fed credit unions) have seen steadily increasing membership numbers for the last several years, and the main reason is their advantages over traditional banking institutions. Members of government credit unions enjoy benefits they can't find at other banks.
As the owner of a small business, help yourself and your business and open an account with a federal credit union. Exercise your options by getting information about federally chartered credit unions. Take advantage of these financial resources:
- Determine eligibility for fed credit unions in your area.
- Investigate the incentives and drawbacks of joining particular federal credit unions.
- Take advantages of incentives at the credit union you join.
Action Steps
The best contacts and resources to help you get it done
Determine which federal chartered credit unions are appropriate for you
Finding a federal chartered credit union is slightly trickier than finding a bank, because there are limits as to who can join them. Each credit union specifies in its charter who is eligible to join, a few examples being only government employees or only residents of certain areas. Consider your eligibility when checking out each fed credit union.
I recommend: Start by looking at the National Credit Union Association, which has several criteria by which you can search. You can also check the National Association of Federal Credit Unions for a general compilation of institutions.
Check out policies of government credit unions
Know what services you'll need for your business, and investigate any incentives and fees which will apply to you. Look into details such as loan policies, transaction fees, interest rates and especially business-owner incentives. Many credit unions can offer better rates and services in these areas than typical banks, a fact that will help your business.
I recommend: Various credit unions offer special programs for small business owners, as detailed by the Credit Union National Association (CUNA). For example, Navy Federal Credit Union has special services for business owners, but remember to check eligibility requirements if you're considering that credit union.
Set up a business account at the federal credit union of your choice
Once you've decided which of the federal chartered credit unions will work best for your business, talk to a representative and set up an account. Make sure you take advantage of all available incentive programs, and get literature that details all applicable fees. Look into long-term savings and retirement programs while you're applying; there may be desirable policies in those areas as well.
I recommend: Look into the process and criteria for joining a credit union by checking out the application information at US Federal Credit Union. You can also get helpful pointers and check out more credit unions at Credit Union Co-Op.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Stay informed of your credit union's net worth; as a credit union member, you're also a shareholder, so you have that much more invested in the institution.
- • If there's a chance that associates or clients of your business are members of a credit union, find out which one they belong to. They might have helpful information about the business relationship between your field and a few credit unions in the area.
