6 Best Credit Unions for Small Businesses in 2023
This article is part of a larger series on Business Banking.
The best credit unions for small businesses provide strong interest-bearing business bank accounts with other products and services that can benefit your company. Credit unions tend to have strict membership requirements. The ones on this list are either available throughout the United States or have business products strong enough to merit inclusion despite stricter membership requirements.
Check the membership requirements of any credit union before applying for a business account. While some credit unions have open membership nationwide, they may require your business to be organized in a specific location.
Here are the six best credit unions for small businesses, with links directly to the provider websites:
- Affinity Plus Federal Credit Union: Best overall credit union for small businesses with a wide range of business products
- Navy Federal Credit Union: Best for military members, families, and department of defense personnel
- Self-Help Federal Credit Union: Best for loans for small businesses and social entrepreneurs
- Credit Union 1: Best for easy membership and scalable checking accounts
- First Tech Federal Credit Union: Best for business insurance
- Bethpage Federal Credit Union: Best for interest-earning checking and savings
Best Credit Unions for Small Businesses At a Glance
Provider | Monthly Fee | Business Checking Annual Percentage Yield (APY) | Business Savings APY | ATM Fee | Available to All Businesses? | Balance Requirement |
---|---|---|---|---|---|---|
$0 or $15 | 0.05% or 0.10% | 0.10% | None at Affinity Plus, MoneyPass, Co-op, and SUM networks | Yes | None | |
$0 to $20, depending on account | 0.01% to 0.45%, depending on account | Varies | None at Navy Federal and Co-op networks | $250 or $255 to open; $5 to maintain; $5,000 to avoid fee for Business Premium Checking | ||
$15; waivable | 0.05% | 0.15% | None at Self-Help and Co-op networks | Yes | $25,000 across all accounts to waive fee | |
Varies; waivable | 0.01% on certain accounts | 0.01% | None at Co-op ATMs; $1 for non-CU1 ATMs; waivable | Yes | $100 to open; various limits to avoid fee for checking | |
$6 or $15; waivable | 0% to 0.10% | 0.05% to 0.10% | None at First Tech and Co-op networks; $2 at nonnetwork ATMs | Yes | $100 to open; $1,000 to $5,000 to avoid fee for checking | |
None | 0.20% | 0.10% for savings, 0.60% money market | None at Bethpage and Co-op networks | No; click to see limitation | None | |
Affinity Plus Federal Credit Union: Best Overall for Small Businesses With a Wide Range of Business Products
What We Like
- 60,000 ATMs through MoneyPass, Co-op, and SUM ATM networks
- Earn rewards with debit purchases
- Highly rated mobile banking app
What's Missing
- No nationwide branches
- Business loan applications require two years of federal and state tax returns―both business and personal
Features
- Merchant services including point-of-sale (POS) solutions
- Auto loans
- Mortgage and mortgage refinance
- Home equity loans (HELs) and home equity lines of credit (HELOCs)
- Traditional individual retirement accounts (IRAs) and Roth IRAs
- Cash and coin delivery with Loomis
Why We Like Affinity Plus Federal Credit Union
Affinity Plus Federal Credit Union is our choice as the best credit union for small businesses thanks to a wide range of business services and three interest-bearing account options. It has a rewards program for debit card purchases, allowing you to redeem points for gift cards, travel, and more. It also has interest-bearing options for checking, savings, and certificates of deposit (CDs). While the checking and savings rates are low, they have CD rates that go up to 4% APY.
In addition, Affinity Plus offers a business credit card, lines of credit, equipment loans, vehicle loans, and merchant services. It even partnered with Loomis to provide cash and coin delivery. For small business owners looking for a well-rounded credit union for their business needs, Affinity Plus is an excellent choice.
Membership Requirements for Affinity Plus Federal Credit Union
First, business owners need a personal membership with Affinity Plus (on their own or jointly). If your business is a sole proprietorship or limited liability company (LLC), the owner must be the one who opens the membership. To be a personal member, you must meet one of the two following criteria:
- Meet the geographic, school, or employment requirements listed here.
- Make a one-time $25 dues payment to the Affinity Plus Foundation, supporting those making a positive impact in Minnesota communities.
Once you have a personal membership, you’ll need to gather the documents for your business type, then submit an interest letter through the company’s website.
Affinity Plus Federal Credit Union Business Checking Terms & Features
Required Opening Deposit | None |
Required Balance Minimum To Earn Interest | None |
Transaction Limit Before Fees |
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Monthly Fee |
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Domestic Wire Transfer Fees | $10 for incoming; $15 for outgoing |
International Wire Fees | $10 for incoming; $40 for outgoing |
ATM Fees | Free access at over 60,000 ATMs nationwide through Affinity Plus, MoneyPass, Co-op, and SUM ATM networks |
APY |
|
Customer Service | In-branch, chat, video calls, and phone during business hours; secure messaging 24/7 |
Other Products | Business checking and savings accounts (business savings required for each membership), CDs, business credit card, lines of credit, equipment loans, vehicle loans, merchant services, and cash and coin delivery with Loomis |
Navy Federal Credit Union: Best Credit Union for Military Members & Families
What We Like
- 350 branches worldwide
- Branches in 30 states and US territories, including Washington D.C. and Guam
- Checking, savings, money markets, CDs, loans, lines of credit, vehicle, & term loans
What's Missing
- Restricted membership requirements
- No unsecured startup loans―businesses less than two-years-old
- $250 deposit for sole proprietorships and $255 for all other legal entities required
Features
- Merchant services
- Payroll processing
- Business insurance
- Resources for veterans starting a new business
Why We Like Navy Federal Credit Union
Membership Requirements for Navy Federal Credit Union
To become a member of Navy FCU, you must meet one of the following requirements:
- Be an active duty or retired service member or a veteran of one of the branches of the armed forces.
- Be a family member of someone who qualifies as active duty, retired, or veteran of one of the branches of the armed forces.
- Be a member of the DoD Civilian personnel.
Navy Federal Credit Union Business Checking Terms & Features
Required Opening Deposit |
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Required Balance Minimum To Earn Interest | $5 |
Transaction Limit Before Fees |
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Monthly Fee |
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Domestic Wire Transfer Fees | Free for incoming; $14 for outgoing |
International Wire Fees | Free for incoming; $25 for outgoing |
ATM Fees | None at Navy Federal and Co-op network ATMs; $1 at out-of-network ATMs plus third-party ATM operator fees |
APY |
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Customer Service | Toll-free phone during business hours, Monday to Friday; through the website or in a branch |
Other Products | Business savings, real estate loans, business lines of credit, vehicle & term loans, mobile and online banking, payroll & merchant services, and tailored insurance options |
Self-Help Federal Credit Union: Best for Loans for Small Businesses & Social Entrepreneurs
What We Like
- Easy to qualify for membership
- Checking, savings, money markets, business loans
- Free online and mobile banking
What's Missing
- Small business loans outside of Illinois and North Carolina must be larger than $500,000
- Startups and new nonprofits are limited to loans of $50,000 or less; secondary source of income required
- No small business loans in California offered at this time
Features
- Offers a full range of financial products and services, including home loans, loans for large and small businesses, car loans, and credit-building loans
- Investments go toward strengthening community organizations, businesses, and social justice efforts
Why We Like Self-Help Federal Credit Union
Self-Help Federal Credit Union (SHFCU) is a good choice for businesses that might need loan products in addition to business checking. While there are some limits on loan sizes, SHFCU has various loan offerings, including SBA 504 loans. It also provides charter school loans, child care loans, faith-based loans, food system loans, small business and nonprofit loans, multifamily housing loans, and other commercial real estate loans.
It has no minimum opening deposit or monthly balance requirements. Both checking and savings accounts are interest-bearing, and the monthly fee can be waived with an average daily balance of $25,000 across all accounts. There are transaction limits, and you’ll incur fees if you exceed them, but SHFCU offers free incoming wires and doesn’t charge any nonsufficient funds (NSF) fees.
Membership Requirements for Self-Help Federal Credit Union
You can join SHFCU in one of two ways:
- Join for free if you live, work, worship, or attend school in an eligible county, or have a family or employer affiliation. It serves communities and employer groups in California, Illinois, and Wisconsin. You can call (877) 369-2828 to verify.
- Pay a one-time fee of $5 to join its Center for Community Self-Help.
Membership forms can be downloaded from the company’s website and mailed in or dropped off at a branch.
Self-Help Federal Credit Union Business Checking Terms & Features
Required Opening Deposit | None |
Required Balance Minimum To Earn Interest | None |
Transaction Limit Before Fees |
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Monthly Fee | $15; waived with combined average daily balance of $25,000 across all accounts |
Domestic Wire Transfer Fees | Free incoming; $15 outgoing |
International Wire Fees | Free incoming; $25 outgoing |
ATM Fees | None at Self-Help branch ATMs and Co-op ATMs |
APY |
|
Customer Service | By email, mail, contact form on its website, or phone during business hours Monday to Saturday |
Other Products | Checking for small businesses and nonprofits, CDs, savings, money markets, commercial loans, SBA 504 loans, commercial real estate loans, industry-specific loans, and mobile and online banking |
Credit Union 1: Best for Easy Membership & Scalable Checking Accounts
What We Like
- Easy to qualify for membership
- Variety of checking accounts
- Send domestic or international wires from a digital device
What's Missing
- Low-yield savings and checking
- No business money market accounts and CDs
- High opening deposit requirement
Features
- Rewards-earning business credit card
- Offers sweep account, which links to your checking account automatically and allows you to set a target balance in your business checking account
- On a daily basis, balances higher than your target are transferred into your sweep account; if your checking account balance falls below your target, funds are transferred from the sweep account back into your business checking account
- Commercial real estate (CRE) loans and business credit card products
- Cannabis banking available
Why We Like Credit Union 1
Credit Union 1 is a solid choice thanks to several deposit account options, including a multitiered checking account product that can scale as your business grows. With three business checking accounts to choose from, it has an account that should meet your business needs.
While the lowest-tier account, Business Express Checking, doesn’t draw interest, it does have some of the same benefits as the higher-tier accounts. You can draw interest on balances in the middle- and top-tier accounts, but the rates are pretty low compared to its competitors on this list.
However, those two accounts offer high limits of free transactions and cash deposits each month. Once you reach the highest tier, Business Express Premium Plus Checking, Credit Union 1 doesn’t charge for out-of-network ATM withdrawals. You need an average daily balance of $25,000 for that account to avoid the $50 monthly fee.
In addition, Credit Union 1 offers commercial real estate loans and a business credit card. It also has Cannabis Banking, although you may want to reach out to the credit union to see if you qualify depending on where your business is located.
Membership Requirements for Credit Union 1
Credit Union 1 membership can be obtained in one of two ways:
- Be eligible within its field of membership (listed within the online application or by contacting a Member Solution Specialist).
- Donate $5 to the Credit Union 1 Educational Development Association, which benefits the continuing education of selected groups.
Credit Union 1 Business Checking Terms & Features
Required Opening Deposit | $100 |
Required Balance Minimum To Earn Interest | 1 cent to earn interest in interest-bearing accounts |
Transaction Limit Before Fees | 5 cents for transactions over the following monthly limits:
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Cash Deposit Fees | 20 cents per $100 over the following monthly limits:
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Monthly Fee |
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Domestic Wire Transfer Fees | Incoming is free; $30 for outgoing |
International Wire Fees | Incoming is free; varies for outgoing |
ATM Fees | Free at Co-op ATM network and shared branches; $1 per transaction at non-Credit Union 1 ATMs
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APY | 0.01% on Business Express Plus and Business Express Premium Plus |
Customer Service | Via live chat, secure message, mail, email, or by toll-free phone number |
Other Products | Business checking accounts, saving account, cannabis banking; sweep accounts linked to your checking, business rewards credit card, commercial real estate loans, free online and mobile bill pay, and merchant services |
First Tech Federal Credit Union: Best for Business Insurance
What We Like
- Variety of business insurance options
- Interest-earning checking
- 30,000 surcharge-free ATMs nationwide
What's Missing
- Limited business loan options
- No business money market accounts
- No business credit cards
Features
- For business savings accounts, funds are completely liquid, which means you can withdraw anytime
- Full suite of personal accounts
- Personal financial advisors available
Why We Like First Tech Federal Credit Union
For businesses looking to secure insurance with the same company as their business checking, First Tech Federal Credit Union is an outstanding choice. It offers the following types of business insurance:
- Directors & officers (D&O) liability policy
- Inland marine policy
- Business umbrella policy
- Professional liability policy
- Workers’ compensation policy
- Commercial vehicle policy
- Employment practices liability policy
- Crime insurance policy
- Business owners policy (BOP)
- Builders risk policy
In addition to its excellent insurance products, it has great checking and savings options, many of which are interest-bearing. What’s more, monthly fees are waivable across its accounts easily.
First Tech also has commercial real estate loans for multifamily, office and industrial buildings, self-storage, mobile home parks, flagged hotels, and healthcare. It also offers interest earnings on its dividend checking, Business Instant Access, a savings product earning up to 0.55% APY, and two other savings accounts that earn 0.05% APY. It even has business certificates of deposit (CDs) earning up to 2.75% APY.
Membership Requirements for First Tech Federal Credit Union
To qualify for membership with First Tech Federal Credit Union, you need to meet one of the following criteria:
- You have a family member or household member who is already a First Tech member.
- You or a family member work for an innovative company on the company’s partner list or for the State of Oregon.
- You work or live in Lane County, Oregon.
- You belong to the Computer History Museum or the Financial Fitness Association, which can be joined at a branch or via an online application.
If you don’t meet any of those criteria, First Tech encourages you to contact its reps at (855) 855-8805 for more information.
First Tech Federal Credit Union Business Checking Terms & Features
Required Opening Deposit | $100 |
Required Balance Minimum To Earn Interest | None |
Transaction Limit Before Fees | None |
Monthly Fee |
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Domestic Wire Transfer Fees | $5 for incoming; $20 for outgoing |
International Wire Fees | $5 for incoming; $50 for outgoing |
ATM Fees | None at First Tech-owned and Co-op Network ATMs; $2 per transaction at out-of-network ATMs |
APY |
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Customer Service | Via branch, secure message, phone, or mail |
Other Products | Business checking and savings, commercial real estate lending, business insurance options, mobile and online bill pay, financial planning and investment services, and business debit and credit cards |
Bethpage Federal Credit Union: Best for Interest-earning Checking & Savings
What We Like
- Easy to qualify for membership
- Interest-earning checking and savings accounts
- No monthly maintenance fee
What's Missing
- Branch locations in New York state only
- No secure messaging within online banking
- Online membership application only available to residents of 12 states
Features
- Retirement planning
- Investment services
- Succession planning
- Vehicle loans, commercial mortgages, lines of credit, and term loans
Geographic limitation:
You must reside in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina, South Carolina, Virginia, or Washington to become eligible for membership.
Why We Like Bethpage Federal Credit Union
Bethpage Federal Credit Union would be higher on our list if it wasn’t so geographically limited. You must reside in one of 12 states to join. If you’re located in one of those states, Bethpage FCU is a great choice with outstanding product offerings.
It has vehicle loans, commercial real estate loans, lines of credit, and term loans. It offers good interest rates on its business checking, savings, and money market accounts.
No minimum deposit is required, and you need 1 cent to continue to draw interest on your account. There are no monthly fees and no transaction limits.
Membership Requirements for Bethpage Federal Credit Union
To become a member of Bethpage FCU, you just need to open a $5 savings account, which can be done through its website. Although, you must reside in one of the following 12 states: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, North Carolina, South Carolina, Virginia, or Washington.
Bethpage Federal Credit Union Business Checking Terms & Features
Required Opening Deposit | None |
Required Balance Minimum To Earn Interest | None; 1 cent to earn APY |
Transaction Limit Before Fees | None |
Monthly Fee | None |
Domestic Wire Transfer Fees | Free for incoming; $20 for outgoing |
International Wire Fees | Free for incoming; $30 for outgoing |
ATM Fees | None at Bethpage and Co-op network ATMs; no charges for out-of-network ATMs, but third-party fees may apply |
APY |
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Customer Service | Via toll-free number, in-branch, or email |
Other Products | Business checking, savings, money market, credit card, CDs, merchant card processing, term loans, lines of credit, vehicle loans, commercial mortgages, and lines of credit |
How We Evaluated the Credit Unions for Small Businesses
When considering the best credit unions for small businesses, we considered the following criteria:
- Nationwide availability
- APY on checking and savings accounts
- Required minimum opening deposits and balances
- Monthly fees, and how waivable they are
- Transaction limits before fees
- Wire fees and ATM fees
- Availability of customer services
- Other business products and services
- Lending products, if available
When To Consider a Credit Union for Your Small Business
When deciding whether to go with a credit union vs a bank for your small business, you want to compare what features and perks you’re getting from a credit union compared to a bank. You also need to consider the membership and monthly fees that might be associated with credit unions. While initial fees are often higher, APY on checking and savings accounts are usually higher with a credit union. In addition, loan rates are often lower.
It may come down to convenience, however. If you need a physical branch location, you might choose a small business checking account instead, as large traditional bank franchises offer more physical locations. Either way, check out our guide on how to open a business bank account before you proceed.
Frequently Asked Questions (FAQs)
Which is better for a business account: credit union or bank?
Regardless of whether you choose a credit union or a bank, both can be great options for your small business. A credit union generally offers you higher interest rates on accounts. Banks, especially large national banks like Bank of America and Chase, likely will have better business support products and services.
If your business is eligible for an account at a credit union, and you just want the higher interest rate returns on accounts, choose a credit union. Otherwise, a bank will likely support your business better as it grows and needs more services for the company and its employees.
What are the disadvantages of credit unions?
The biggest disadvantage of a credit union is membership is often limited by geographical or workplace eligibility. Sometimes, even if you can join as an individual, you may not be able to get a business account because your company doesn’t operate in the state required by the credit union. Three other disadvantages of a credit union for business accounts are:
- Smaller selection of business products and services
- Limited physical locations compared to large national banks
- Technological advances often lag behind banks
Which is safer: bank or credit union?
As long as the accounts you open are insured, a bank and a credit union can be equally safe. Business accounts at banks are insured by the Federal Deposit Insurance Corporation (FDIC), while credit unions are insured by the National Credit Union Administration. Both types of accounts should be insured for up to $250,000. So, as long as the account is insured and you have less than $250,000 in the account, you’re safe.
Bottom Line
Credit unions can provide excellent accounts and services for your business. However, before considering a credit union, ensure your business can meet the membership requirements for a business account. Also, consider the other services the credit union can provide your business. Compare the best credit unions for business accounts on this list, and choose the one that best meets your needs.