Opening a Checking Account: Why Choose a Credit Union?

4 MIN. READ

Key takeaways:

Opening your first checking account is an important milestone, and you should choose your financial institution carefully.
Credit unions offer low fees and a local focus that major banks don’t have.
Banking with a credit union can bring you closer to your financial goals, one paycheck at a time.

Congratulations! You just got your first job. Now you need a checking account so your employer can send your direct deposit somewhere.

Opening a checking account is a major milestone, and choosing the right financial institution matters more than you think.

Here’s why a credit union is a great choice for your very first checking account.

Why Is a Good Checking Account So Important?

The right account makes it easier to stay on top of bills, save for your goals, and avoid unnecessary fees.

Choosing wisely now can help you build healthy financial habits and bring you closer to the next milestone.

There are a few things to look for when opening a checking account:

Is there a monthly fee for the account? Monthly fees, even small ones, can quickly add up.
What about other fees? Pay close attention to what happens if you overdraft your account by accident.
What kind of money management tools do you get access to? Look for a digital platform that allows you to check your account balance easily and lets you set up automated payments.

How Credit Unions Differ From Banks (And What That Means for Your Checking Account)

Why choose a credit union for your first checking account? Credit unions are different from traditional banks in major ways.

Fees

Traditional banks are created to make a profit, which means charging you as much as possible for their products.

Credit unions operate on a not-for-profit model. You’re much more likely to find a checking account with no or low monthly fees with a credit union and avoid overdraft fees.

Ownership Structure

Banks are run by investors. All decisions regarding the bank's future are in the best interest of these investors.

Things are very different at credit unions, where members are the owners. When you join a credit union, you also become a part-owner and can vote on important decisions, ensuring the credit union always does what’s best for its members.

Community Focus

Credit unions operate on a smaller scale than major banks. They have strong ties to the community, and the money you put in your account will go into a pool that helps finance things like loans for local businesses and mortgages for families in your community.

Your money makes a real difference, and you and everyone you know will benefit from your local credit union supporting the local economy.

Next Steps: Your Financial Journey With a Credit Union

Opening a checking account is only the first step. Because credit unions aren’t about making a profit, you can meet with a representative and get genuine financial advice that will bring you closer to your milestones.

Once you’re a credit union member, you can access a wide range of banking products. These can include:

Credit cards that are easy to access, even if you have limited credit.
Affordable student loans with terms that are easy to understand.
Your first loan to buy a used car when you’re ready for this milestone.
A savings account with a competitive rate.

All these banking products come with the same credit union perks, including low to no fees, great service and transparent member agreements with no hidden fees.

Who Can Join a Credit Union?

Joining a credit union is easy. In the past, credit unions typically restricted membership to people who worked for specific employers, but that's no longer the case.

You’re usually eligible to join one or more credit unions simply based on where you live. For instance, membership to Power Financial Credit Union is open to anyone who lives, works or goes to school in South Florida.

Opening a Checking Account with Power Financial Credit Union

Power Financial Credit Union offers some great options for your first checking account:

We have Student checking accounts with no monthly fees and no overdraft fees if you’re currently enrolled in school.
You can also get a Regular checking account. You only need $20 to open your account! This account also had no overdraft fees.
If you want more out of banking, our Cash Back Checking account is for you. You can earn rewards just for using your checking account!

We have a convenient online process to apply for membership and open your first account. Note that you’ll need two forms of ID, your SSN and a current address.

You can also stop by one of our South Florida branches to open your checking account in person!

FAQs

Why should I open my first checking account with a credit union instead of a bank?

Credit unions are not-for-profit, meaning they prioritize members over profits. You’ll typically enjoy lower fees, fairer terms, and more personal service than at large banks. Plus, your money helps support loans and programs in your local community.

What do I need to open a credit union checking account?

You’ll usually need a few things: two forms of ID (such as a driver’s license and school ID), your Social Security number, proof of address, and an initial deposit. Some credit unions, like Power Financial Credit Union, let you open your account entirely online.

Who can join Power Financial Credit Union?

Membership is open to anyone who lives, works, or goes to school in South Florida. You can join entirely online as long as you’re able to upload two forms of ID.