Wondering about credit unions? They’re smaller than the big traditional banks and run by members instead of shareholders, so you get more say in how they operate. But smaller institutions could mean fewer branches and ATMs. Check out our guide on credit unions and find out what to look for — and avoid — when exploring accounts.
What is a credit union?
A credit union is a nonprofit financial institution that generally offers the same products as traditional banks. Each credit union member owns a share in the organization they belong to, and each has a vote in how the credit union is managed or governed.
While banks pass any profits on to their external shareholders, a credit union’s profits are put back into the products and services they offer. This aims to let members enjoy their share of profits through better customer service, lower mortgage interest rates, fewer fees and better banking products.
Originally, credit unions were created by various industries to give their workers access to banking products without having to pay high rates and fees. For this reason, many credit unions today still only cater to certain groups, such as teachers unions or religious groups. However, many have been able to expand their membership to the general public.
Enjoy no monthly account fee and unlimited free transactions with the Coast Capital Free Chequing, Free Debit, and More Account. There are also no minimum balance requirements, making this a cheap and easy-to-use chequing account.
$0 monthly account fee
unlimited free transactions
Interac e-Transfers will cost you $1.50 each
As with most chequing accounts, you won't earn interest on the money you hold in it
Min. Age
19
Account Fee
$0
Overdraft Fee
$5
ATM Out-of-Network Fee
$10
U.S. ATM Fee
$2.50
International ATM Fee
$5
Dormancy Fee
$1.50
How do I compare credit union bank accounts?
Make sure you keep the following features in mind when weighing up the pros and cons of different credit union bank accounts:
Fees
Start by checking what fees and charges will apply to your account. These include monthly fees, annual fees, overdraft fees, bill pay fees, foreign transaction fees and anything else you can be charged. Read the fine print closely to familiarize yourself with all penalties that may apply, and check to see if any of the fees can be waived if you meet certain conditions, like a minimum balance requirement.
Account access
Compare the options you have for accessing your funds: Can you manage your money online, from an app, over the phone and/or by popping into a branch? If you ever need fast access to your funds in an emergency, can you withdraw money from your account without incurring any fees? If you regularly use ATMs, how large is the credit union’s ATM network?
Internet and mobile banking portals
In our modern world, more and more of our everyday banking transactions are carried out online or via your smartphone. With this in mind, read reviews and testimonials to find out how user-friendly the credit union’s Internet banking portal and mobile app are.
Things to watch out for while comparing a credit union to a bank include:
Limited presence. Due to its smaller size, you might find that the credit union you choose doesn’t have a large presence in Canada. This can make it hard to find a branch or in-network ATM while traveling.
Membership fees. Most credit unions require you to pay a membership fee or make a donation in order to join.
Less tech-savvy. Smaller credit unions may not have the resources to invest in expensive technology like mobile banking apps, though most will have at least some online presence.
The biggest credit unions in Canada
Here are the top 10 largest credit unions in Canada by assets as of Q4 of 2019:
Vancity — $23.2 billion
Meridian Credit Union Limited — $21 billion
Coast Capital Savings Federal Credit Union— $20.2 billion
Servus Credit Union — $16.3 billion
First West Credit Union — $11 billion
Steinbach Credit Union Limited — $6.9 billion
Conexus Credit Union — $6.5 billion
Alterna Savings and Credit Union Limited — $6.1 billion
Affinity Credit Union — $6 billion
Connect First Credit Union Ltd — $5.8 billion
Bottom line
Credit unions offer all the features you’d expect from an ordinary bank, but often with fewer fees and better features. Compare traditional chequing accounts and credit union accounts to find the option that’s the best fit for you.
Frequently asked questions
Yes, a federally-insured credit union is just as safe as a federally-insured bank. In both cases, your money is backed by the federal government up to $100,000.
You can check the credit union's website for a list of eligibility criteria, call and talk to a representative or visit a branch to find out more about how to qualify for the credit union you're interested in.
Yes, many credit unions offer credit cards, just like traditional banks.
Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.
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