Some people are uncomfortable with the traditional business model of a bank; a for-profit company that exists to offer services yet generates a profit for its investors. A credit union, organized as a non-profit organization, has the customers acting as the board of directors. The US government charters Michigan federally chartered credit unions, as opposed to state-chartered credit unions. There are 135 federal credit unions in Michigan, but the state charters many more government credit unions in Michigan.

Things to consider when searching for Michigan federally chartered credit unions:

1. Do you qualify?

2. Will it suit your needs?

3. Will you get the same level of service as you would from a traditional bank?

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

Find the Michigan federally chartered credit union that you qualify for

Due to the nature of the credit union business model, not everyone can qualify. The federally chartered credit unions in MI often base themselves on specific groups such as teachers, government employees or students of a particular university.

I recommend: For a list of Michigan federally chartered credit unions, along with specific information about federally chartered credit unions in Michigan go to the National Credit Union Association website.

Size may matter for MI federal credit unions

Credit unions are often much smaller than traditional banks. Therefore, the Michigan federal credit unions likely won't have branches in other states if you need to do business in multiple states. Some, such as the Michigan State University Credit Union have multiple branches so you can do business in several cities.

I recommend: The largest federally chartered credit unions in Michigan are the Dearborn Federal Credit Union with 160,000 members followed by Credit Union One with 117,000 in 2006.

Shop around for Michigan federally chartered credit unions

Because there are so many Michigan federal credit unions, it's important to shop around. Look at the interest rates offered for savings accounts and the fees charged for checking accounts. Think about what your needs will be in five years and ask yourself if a credit union is the right way to go.

I recommend: Just about every federal credit union in Michigan has an informative website and will allow you to easily compare them in order to find the right one for you.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Think about accessibility. While a credit union may have just one branch, you may be able to use the ATM card at ATMs connected to other banks or financial companies.
• •  Look at online options. Most banks and financial institutions now offer very reliable online banking options; credit unions have followed as well in most cases. Check on the kinds of online banking options offered to make sure a credit union will suit your needs.