Using Federal Employees' Credit Unions
Take advantage of eligibility to join a credit union for government employees
If you're new to the federal government, or are simply seeking employment there, you may not know about federal employee credit unions. It is best to take the time to learn though, since it could save you a lot of money.Federal employee credit unions are financial institutions that usually offer better rates and fewer fees than you are used to seeing at banks. Other important points include:
1. A federal government credit union serves more than just federal employees.
2. Federal government credit unions number in the dozens, so there's a good chance you can join one.
3. In addition to traditional government credit unions, there are also military credit unions that cater to service members.
Find a federal employees credit union that you can join
Unlike banks, federal employee credit unions, and all credit unions in general, have rules about who can use their services. You have to qualify through your employer, via a household member or sometimes by where you live, work or go to school. The rules are different depending on the credit union.
Try: Go to the Credit Union National Association's credit union locator to find credit unions for federal employees in your area. Also ask human resources if credit union membership is included in your benefits package. Even if you don't work for the government, your company could still qualify as a select employee group. A-K Valley Federal Credit Union has a good explanation of how this works.
Learn about the services your federal employee credit union offers
To become a member of your federal employees credit union, all you have to do is open a savings or "share" account with a minimal amount of money -- usually $5 to $50. But, to really take advantage of your membership, you should not stop there.
Try: Go to the Houston Federal Credit Union's website to read up on terms you may encounter that you don't understand. Some account names are different at credit unions than they are at banks. For instance, savings accounts are called "shares." Then check out Bankrate's web page comparing banks and credit unions. Finally, go to your credit union's website and do some rate shopping.
Start using federal employees' credit unions and save some cash
Once you've got a good idea of what your federal employee credit union offers, start using it. It could be one of the best financial decisions you've ever made.
Try: Before you put a significant amount of money away in the credit union, make sure it is federally insured. Most are, but there are exceptions. If yours is insured, it will have the National Credit Union Association's logo on its website and in its branches. This guarantees your savings for up to S250,000 plus an additional $250,000 for your IRA savings. Some credit unions also offer Excess Share Insurance to provide up to $250,000 more than the federally insured amount.
- Just because a credit union has the word "federal" in its name doesn't mean that it's a federal employee credit union. Lots of credit unions use it to reinforce that they're federally insured.
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