Federally Chartered Credit Unions

Consider federal credit unions rather than banks for your business

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:

1. Determine eligibility for fed credit unions in your area.
2. Investigate the incentives and drawbacks of joining particular federal credit unions.
3. Take advantages of incentives at the credit union you join.

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.
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.

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.

• 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.

Copyright © 2013 Business.com, Inc. All Rights Reserved.

---