Banks are good, but government credit unions in Massachusetts can be 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 not-for-profit. This allows them to 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 Massachusetts federal credit union, consider:

1. The advantages of a federally chartered credit union over a traditional credit union

2. Eligibility requirements to join Massachusetts federal credit unions

3. Major players among federal credit unions in Massachusetts

Action Steps
The best contacts and resources to help you get it done

Learn about the advantages and disadvantages of Massachusetts 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 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 Massachusetts federally chartered credit union

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 Cambridge Teachers' Federal Credit Union is restricted to permanent employees of the school system and members of the School Committee of the City of Cambridge, Massachusetts, plus employees of certain charter, parochial and private schools.

I recommend: See if you meet eligibility requirements for the Cambridge Teachers' Federal Credit Union.

Compare and contrast the major players among federally chartered credit unions in MA

Here is a small listing of some other Massachusetts federally chartered credit unions. The Federal Reserve Boston Credit Union allows any Federal Reserve Bank of Boston employee, retired employee or immediate family member (spouse, child, sibling, parent, grandparent or grandchild) to join. This organization offers a variety of loans (auto, home, personal and credit cards), checking and savings accounts, savings bonds, traveler's checks and online banking. The Norfolk Community Credit Union is open to persons who live, work, attend school, worship or own a business in these 10 Massachusetts municipalities: Bellingham, Foxboro, Franklin, Medfield, Medway, Millis, Norfolk, Plainville, Walpole and Wrentham. This credit union offers a variety of loans, certificates of deposit and checking and saving accounts.

I recommend: Visit the National Credit Union Administration to search for federally chartered credit unions in Massachusetts. See if you qualify to join the Federal Reserve Boston Credit Union or the Norfolk Community 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 Massachusetts, you may qualify to join more than one federally chartered credit union in Massachusetts. Make sure to compare interest rates for loans and savings accounts to get the best deal.