A traditional bank isn't for everyone. When people qualify for a credit union, that can be the right choice. A credit union is organized as a non-profit organization, where the customers act as the board of directors.

One of the largest types of credit union is a state employee credit union. In many areas, credit unions for employees of the state are also open to other municipal employees. Things to consider when searching for a state employee credit union:

1. Do you qualify? State employees’ credit unions are typically open to people who work for, or are retired from, a job for a state, county or city.

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 credit unions for state workers in your state

Finding the state employees' credit union in your state may be as easy as looking in your neighborhood. Some states' credit unions are large operations with branches in many convenient locations. A quick Internet search will likely turn up the closest branch.

I recommend: A national list of all federally chartered credit unions is available from the National Credit Union Administration. It will list all of the credit unions near you.

See how many branches are available for state employees credit union banks

Credit unions are often much smaller than traditional banks. Therefore, a credit union for state employees likely won't have branches in other states if you need to do business in multiple states. Chart out the credit union's retail branches and consider whether they are close enough to where you live and where you'll want to do business. When picking a state employees credit union, access is important. In some cases, a credit union for state employees will have a sharing arrangement with other banks' ATMs, so you can use those to withdraw money for a small fee.

I recommend: The website for the State Employees' Credit Union in Michigan, for example, gives a list of locations based on county. Similarly, the State Employee's Credit Union in Georgia charts branch locations online.

Determine whether you'd like your state employee credit union backed by a Federal or state charter

There is a difference in credit unions between state and federal charters. It all depends on what governmental entity is backing the organization. In some cases, the state employees' credit unions are state-chartered organizations, though in most cases it is a federal charter. The National Credit Union Administration (NCUA) is the independent federal agency which charters and supervises federal credit unions. These are backed by the full faith and credit of the U.S. government, and are insured as well.

I recommend: Check the NCUA to find out if the credit union in your area is a state employees federal credit union, thus federally chartered. Some are not, such as the credit unions for state employees in Maryland, which is the state's largest state-chartered credit union.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  In choosing a state employees credit union, online banking should be a concern. Most banks and financial institutions now offer very reliable online banking options; credit unions have followed as well in most cases. Check on what kinds of online banking options are on offer, to make sure a credit union will suit your needs.