Credit unions are a great option when considering where to open a savings account. While the best choice depends on your personal preferences and financial situation, credit union savings accounts come with several member benefits that set them apart.

One key advantage is that credit unions generally offer higher rates on savings products, allowing members to grow their wealth faster. This is because credit unions are member-owned, meaning profits are returned back to members in the form of dividends, lower or no fees and better rates. 

Opening a savings account with a credit union also provides access to educational resources. Credit unions often provide financial counseling services and guidance on creating a budget, which can help you make the most of your savings. Credit unions typically take a community-oriented approach to banking, focusing on serving their members rather than maximizing profits.

California Credit Union makes opening a personal savings account a hassle-free process. Here’s how it works: 

• In-person or online: California Credit Union offers the flexibility to open your account either in person at a branch or online through our website. The online option can be particularly convenient if you’re looking for a quick and easy way to start saving.
• Membership requirement: To open a savings account, you must first become a member of the credit union. California Credit Union has specific membership criteria, which include living, working, worshiping or having a business in Los Angeles, Orange, Riverside, San Diego, San Bernardino or Ventura counties in California. Or, you must be an immediate family member, spouse or partner of a California Credit Union member or be affiliated with a California school as a current or retired employee, PTA member or member of an employee organization or an alumni association member of a California college or university.
• Initial deposit: You’ll need to make an initial deposit to open your account. The minimum amount varies depending on the type of savings account you choose.
• Documentation: You may be asked to provide identification, proof of current address and other documents depending on the account type and your membership eligibility.

Looking for more ways to make your money work for you? Check out our personal checking account, which comes with ATM access, digital banking and other features. 

Credit unions offer various types of personal savings accounts to help members save and grow their money. California Credit Union provides several options:

• Share Savings Account: This is the basic savings account. It often requires a low minimum balance and offers competitive dividend rates.
• Student Savings Account: Designed for young savers, these savings accounts often come with lower minimum balance requirements and may offer educational resources about money management.
• Educator Summer Savings Account: This specialized high-yield account helps educators manage their finances during summer months when they might not receive regular paychecks.
• IRA Savings Account: These accounts are designed for retirement savings and offer tax advantages.
• Money Market Savings Account: These accounts typically offer higher dividend rates than regular savings accounts, especially for larger balances. To learn more about the differences, check out our guide on money market vs. savings accounts.

Credit union savings accounts offer several advantages that make them an attractive option for many savers:

• Higher rates: Credit unions often offer more competitive dividend rates on their savings accounts than traditional banks. This means your money can grow faster over time.
• Low or no fees: Many credit union savings accounts have low or no monthly fees to maintain your account. This benefit helps you keep more of your hard-earned money.
• Insured deposits: Just like banks, credit union deposits are insured. The National Credit Union Administration (NCUA) gives savers coverage up to $250,000, so your savings are protected.
• Community focus: Credit unions are member-owned and focus on serving their community. This community focus often translates to more personalized service and a commitment to helping members achieve their financial goals.

Yes, credit union savings accounts do earn interest, although it’s typically referred to as dividends. This is because credit union members are partial owners, and the earnings on their accounts are considered a share of the credit union’s profits.

Credit unions tend to offer more competitive dividend rates than many traditional banks due to their not-for-profit status and member-owned structure. Instead of focusing on generating profits, credit unions work for their members, providing them with the best possible financial products and services.

To maximize your earnings, consider exploring different ways to save and strategies for building good credit, as a strong credit profile can open up opportunities for even better financial products and rates in the future.