Compare Canadian credit union savings accounts

Are credit unions better than banks for building up your savings? With higher interest rates and a members-only structure that gives each customer more power over their money, there are plenty of reasons why you might want to use a credit union savings account to help build your wealth or to simply set aside funds for a rainy day.

There are a lot of credit unions in Canada to choose from, which altogether hold billions of dollars in assets. You might’ve heard of some of the biggest players in the game: Vancity, Coast Capital Savings, Servus, Meridian and Assiniboine, among many others.

What is a credit union?

Sometimes referred to as a “cooperative bank” or “people’s bank,” a credit union is a nonprofit member-owned financial institution offering similar financial products to banks. Members’ pooled resources often result in lower fees and better rates than typically offered by banks.

Credit unions were initially created to take away high fees and barriers to banking. Over five million Canadians prefer these institutions over big banks. Some credit unions are made only for certain groups of people (such as agricultural workers or teachers) or people living in specific regions.

Credit union savings accounts

Savings account	Interest rate	Minimum balance	Account highlights
Coast Capital High-Interest Savings Account	0.30%	$0	2 free monthly transactions, $5 per additional transaction Receiving e-Transfers is free, sending them costs $1.50 each Insured by the CDIC
Steinbach Credit Union High Interest Savings Account	2% on balances less than $100,000 on balances between – 2.25% on balances over	$0	All deposits are free, and withdrawals are $1.00 each (first monthly withdrawal is free). Mobile app available for Android and iOS.
Parama Daily Interest Premium Savings	2.5%	$0	Offers unlimited deposits and withdrawals. Mobile app available for Android and iOS.
Meridian Credit Union High Interest Savings Account	0.85%	$0	Offers $0 transactions, including deposits and withdrawals. Mobile app available for Android and iOS.
Innovation Credit Union Savings Account	0.6%	$0	Offers 6 free debit transactions per month (over limit transaction fee apply thereafter), including deposits and ATM withdrawals Mobile app available for Android and iOS
Vancity Jumpstart High Interest Savings Account	0.7%	$0	All deposits are free, while debits and withdrawals are $5.00 each Full-service mobile app available for Android and iOS

Are my savings in a credit union account safe?

Yes, funds stored in credit unions accounts are typically safe. You should know that only federal credit unions are insured by the Canada Deposit Insurance Corporation (CDIC), but provincial credit unions are insured by provincial deposit insurers, like the Financial Services Regulatory Authority of Ontario (FSRA).

What are the benefits of joining a credit union?

• Multiple options. Most credit unions offer multiple savings account options to suit the varying needs of its customers. Options can include regular savings accounts, high-interest savings accounts, TFSAs, RRSPs and GICs.
• Lower fees. Since credit unions are nonprofit institutions that reinvest profits back into the business rather than distributing them to stakeholders, fees for services and accounts are often lower than traditional banks.
• Competitive rates. Many credit unions offer interest rates that are comparable — if not beyond — rates offered by traditional banking institutions.
• Personalized experience. Credit unions are smaller and sometimes more localized than big banks, allowing them to offer a more personal approach to banking.

What are the risks of joining a credit union?

While credit unions may not be as familiar to the public as big banks and may therefore lack the widespread public acceptance and trust that big banks enjoy, credit unions are still provincially regulated and insured, so that your money is safe.

Still, there are a few disadvantages that you might want to consider when deciding whether to open a savings account with a credit union:

• Limited presence. Due to the smaller size of most credit unions, you might experience some inconvenience when you want to visit a physical location and can’t find one that’s very close to you.
• Membership fees. Most credit unions require you to pay a membership fee or purchase shares of the credit union in order to join.
• Less tech-savvy. Some credit unions may not have the resources to invest in expensive technology like well-designed mobile banking apps. However, most do offer online banking, and some of the bigger, more established credit unions like Vancity, Meridian and Capital Coast have invested in making full- or nearly full-service apps that are comparable to mobile apps made by big banks.

Dive deeper: Compare the best online savings accounts

How to compare credit union savings accounts

Before you can compare savings accounts offered by credit unions, you’ll need to make sure you’re eligible to become a member. Some credit unions have membership requirements based on your location or occupation, while others may allow anyone to become a member. Once you narrow down your choices, you can begin to compare the following features of each savings account.

Membership fee

Credit unions will often require you to purchase shares of the union or pay a membership fee to join and open an account. Shares typically cost no more than $5 to $25 each, and you’re usually required to purchase between one and five member shares.

Interest rates

Once you’ve narrowed down your options, check the interest rates for the savings accounts you’re interested in and ensure they’re competitive with what you’d find at a traditional bank. Note any aspects such as minimum balances or tiered interest rates that would affect your plans to save.

Also, remember that promotional/introductory rates won’t last forever — if a credit union promises a great interest rate that only lasts for a limited time, make sure you know what the long-term rate is and that you’re comfortable with it.

Fees

Check for any fees that might come with the account, including monthly maintenance, penalties for not maintaining a minimum balance, ATM charges or excessive withdrawal fees. Credit unions may also charge for Interac e-transfers, cheques, in-person service at physical locations, wire transfers and other banking functions, although the terms of your savings account may permit some or all of these charges to be waived.

Accessibility

Some credit unions offer online banking or mobile apps to give you greater access to your account. You should also consider how many branches and ATMs you’ll have access to, and how far the nearest location is. Many credit unions partner with existing banks or other financial institutions to allow you to use a network of ATMs across the country.

Option for a linked account

It’s common to link savings accounts to a standard chequing account so that you can easily transfer funds from one to the other. If you don’t want to open a chequing account at the same credit union, you’ll need to check if you’re allowed to link your savings account to an account at another institution.

Minimum balance requirements

To avoid minimum balance fees, look at accounts that have no requirements for how much money you must keep in your savings account. If you decide to open an account that requires a minimum balance, be sure to keep your balance above that level to avoid charges.

Questions to ask when choosing a credit union

If you’re thinking about joining a credit union, consider the following factors when making your decision:

Credit unions vs traditional banks

Credit unions offer a full range of banking products and services for both individuals and businesses. In this way, there’s a great deal of similarity between credit unions and banks.

One big difference, however, is that many credit unions will have membership requirements — either a geographical or professional requirement, or a prerequisite member-share purchase in order to get access to the credit union’s services and products.

Still, you can generally expect to find everything that regular banks offer, such as:

Though credit unions may have a more limited list of the types of banking accounts offered, common savings solutions offered by almost all credit unions include Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Accounts (RRSPs), Guaranteed Investment Certificates (GICs), and savings accounts with competitive interest rates.

Credit unions vs digital banks and fintechs

Credit unions, digital banks and fintechs all provide financial services to individuals and businesses, but they differ in how they operate and serve customers.

Credit unions are nonprofit, member-owned institutions that often have high eligibility requirements. In contrast, digital banks and fintechs are typically for-profit, online-only platforms that offer easy access and low fees with no membership requirements.

Digital banks and fintechs often offer fewer products than traditional banks or credit unions. Products you’ll typically find at digital banks include:

• No-fee or low-fee chequing accounts
• High-interest savings accounts
• Registered savings accounts
• Mobile debit cards or virtual cards
• Budgeting and spending tools

Some digital banks offer loans and investments as well, but with a more limited selection than credit unions and traditional banks. But digital banks usually have higher interest rates, lower fees and more convenient access to your funds.

The biggest credit unions in Canada

Below is a list from the Canadian Credit Union Association (CCUA) of the top 10 largest credit unions in Canada by assets as of the second quarter of 2024. Collectively, these credit unions have over 3.0 million members and hold over $165 billion in assets.

• Vancity (Vancouver City Savings Credit Union, BC) — $29.04 billion
• Meridian Credit Union Limited (ON) — $27.05 billion
• Coast Capital Federal Credit Union (BC) — $21.79 billion
• Servus Credit Union (AB) — $21.10 billion
• First West Credit Union (BC) — $14.35 billion
• Desjardins Ontario Credit Union (ON) — $13.19 billion
• Access Credit Union Limited (MB) — $12.66 billion
• Steinbach Credit Union (MB) — $9.800 billion
• Beem Credit Union (BC) — $8.5 billion
• Alterna Savings and Credit Union Limited (ON) — $8.07 billion

The list above is constantly changing. In fact, in May 2025, the CCUA confirmed that Servus Credit Union has become the largest credit union in Canada by assets.

Bottom line

If you’re looking for a personalized, no-frills banking experience or just want an alternative to big banks, then a credit union may be just the ticket. Most offer products with competitive rates and minimal fees, allowing you to grow your savings and reach your financial goals faster. Eligibility requirements are stricter than with traditional banks, however, and branch availability is often limited.

Before making a final decision, compare your options with our guide to savings accounts.

Frequently asked questions about credit unions

• Are credit unions insured by the CDIC?

  Yes, federal credit unions like Capital Coast Savings are insured by the CDIC. However, credit unions regulated by provincial institutions are insured by such institutions or by non-governmental entities. The amount of coverage provided by provincial insurers may vary for different credit unions, unlike banks insured by the CDIC, which are always covered up to $100,000 for each account-holding customer. Funds deposited into accounts at some credit unions may actually be insured for much higher amounts than what the CDIC covers.

  The Financial Services Regulatory Authority of Ontario insures non-registered accounts at Ontario credit unions for up to $250,000 and registered accounts, such as TFSAs and RRSPs, for an unlimited amount.

  Visit the Canadian Credit Union Association for more information on what credit unions operate in Canada, how credit unions are regulated and what sets these institutions apart from traditional banks.

• Are credit unions only available to people who belong to a work union?

  No, many credit unions are very open and flexible with their membership criteria. Some will allow family members and friends of union members to join, while others are open to everyone.

• Do credit unions offer home loans and other banking products?

  While financial products vary from one credit union to the next, most offer the same products that banks do, including home loans. See the list above showing some of the banking products and services that credit unions typically offer.

• Does signing up for a credit union require a credit check?

  No, there is no hard credit check required to join a credit union in Canada.