Making the Most of Federally Chartered Credit Unions in New York

Learn more about using government credit unions in New York for your business

The key to making the most of federally chartered credit unions in New York is understanding the differences between a bank and a credit union. Unlike a bank, a credit union is a non-profit organization that is exempt from taxes. Additionally, federal credit unions have federal deposit insurance of at least $250,000 per member that is backed by the United States government.

New York federally chartered credit unions must restrict membership to a defined segment of the population. This group is called a credit union's "field of membership" in the United States and "common bond" or "bond of association" internationally. A credit union typically bases its field of membership upon the following criteria:

1. Geography: New York federal credit unions may accept members in a specific area.
2. Organization: NY federal credit unions may be comprised of employees of specific companies or other civic or religious groups.
3. Occupation: doctors, lawyers and teachers frequently have their own credit union.
   

Research the laws regarding federal credit unions in New York when looking for a subprime loan

Credit unions are not allowed to make a loan that is not in the best interest of its members. Applying for a subprime loan at a credit union can therefore be one way of determining if a subprime loan is in your best interest.

Determine which federally chartered credit unions in NY your business may be able to join

A credit union specifies its field of membership in its charter, and credit unions that based their field of membership upon geography are generally the easiest to locate. Some business may even form their own credit union.

Select government credit unions in NY by comparing their features

There are many sites that provide reviews and other information on credit unions. Features to consider include branch locations, service hours and self-service options.

• A federal credit union in New York may have a wider field of membership than the one implied by its name. Smaller credit unions may merge together under the name of one of the original credit unions and individuals are generally allowed to remain a member even after they no longer belong to its field of membership. Additionally, corporate credit unions may serve as clearing houses for other credit unions by providing them with operational support, products and other services.

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