About the Teachers Federal Credit Union
A teachers' federal credit union is a trade-based credit union that provides banking and financing services custom-tailored to those in the teaching profession. There are many independently owned teachers' federal credit unions around the U.S., and branches are often found in busy metropolitan areas. While there is no central teacher's federal credit union, all of them are under the jurisdiction of the Credit Union National Association.
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Differences From Banks
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A teachers' federal credit union is very similar to a bank in form and function, but has several distinct features. While you can still open checking and savings accounts, there are generally lower fees associated with these accounts. Because credit unions are controlled by the members, the union is classified as nonprofit, and thus has lower operating costs. Another major difference between credit unions and banks is that, since the credit union is trade-based, it will often have different lending terms, and may give better rates to those with certain tenures in the teaching field.
Benefits
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There are several benefits to joining a teachers' federal credit union. Joining will afford you access to loans and financing options that are created with teachers in mind. In addition, it is generally cheaper to open and maintain accounts with credit unions than regular banks.
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Considerations
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If you are planning on joining a teachers' federal credit union, ask what kind of credentials you will need to open an account. Most places will accept a pay stub or work ID as proof of employment, but it is important to make sure. Also determine whether or not you need ATM access. Most credit unions do not have many ATMs outside their local area, and if you need fast access to cash, the credit-union route may not be for you.
Misconceptions
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One of the biggest misconceptions about federal credit unions is that they are less secure than traditional banks, and are more likely to close under economic pressure. However, this couldn't be further from the truth. Not only are federal credit unions federally insured to the same amount as banks, but because they are nonprofit, it is less likely that they will close branches.
Finding a Branch
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Although there is not a nationwide teachers' federal credit union, individual branches are common, especially in densely populated areas. Many colleges and universities also have education-centric credit unions that are available to both students and teachers. To find a credit union near you, check the Credit Union National Association website's credit-union locator. (See Resources.)
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Resources
- Photo Credit River City FCU
