For most institutions, opening an account at a credit union does not require more than 5-10 minutes to get started. Credit unions are always looking at ways to increase their member base, and with that, there’s an incentive to make applying for a credit union account as easy as possible.
There are many advantages to opening up a credit union account, and many people prefer credit unions to banks for their more customer-centric approach. Here is everything you need to open a credit union account.
Find the Right Credit Union
There may be a dozen or more credit unions in Ontario. You may access one through an employer, location, a family member, or an occupation. Do some research into what credit unions are available to you.
Different Accounts
Not all credit unions have the same offerings. Some offer different accounts, but the exact services and rates vary according to the institution. Be sure to look at a few different credit unions before joining anyone.
How to Open A Credit Union Account
Though you can apply in person at a credit union, many allow you to complete the process online through a website portal. If your credit union offers this service, all you have to do is go online to the website, either by desktop, tablet, or smartphone, enter your information and upload any requested documents.
Who Can Apply to Open A Credit Union Account
Every credit union is different. Most general credit unions have a very low bar regarding who can have an account there. All you need is to be the age of majority where you live, be a resident of the province where you’re applying, and have a personal email address or contact information verifying your residency. Additional information may be requested at a later time.
Credit Unions Have Members, Not Customers
While you are a customer at a bank regarding credit unions, you are a member or, a term preferred by some, a shareholder. You pay a fee to become a member. With that, you have access to decision-making in the credit union, can play a role in how it carries out its policies, and ultimately become a part of the family. In this regard, many find that credit unions are more understanding than most banks when applying for accounts and services.
Become a Member and Then Open An Account
Opening a credit union account is usually a two-step process. The first is to become a member. The second is to apply for the specific account you want, personal or business, and what type.
Pay the Member Share Fee
A member share is charged upon sign-up to become a credit union member. This small one-time deposit is required to become part of the credit union.
Personal Information Is Required
As with opening any financial account, address, social insurance number, employment details, and contact information are necessary. Some credit unions may not require your SIN number or employment details; however, do inquire if that is the case. If you’re uncomfortable sharing that information, you may or may not need to.
Identity Verification Is Required
Identity verification is likely required to open a credit union account. This may include sharing a recent bank statement, utility bill, or credit card statement. What is acceptable depends entirely on the credit union.
Using Your Credit Union Account
After you have your credit union account, you can use it just like any bank account. It can be set up with direct deposit. You can pay your bills online through a credit union account. Many credit unions have apps allowing you to check your balance and move through your smartphone. You can also set up email and text alerts on a credit union account, like at a bank.
Make a Deposit Into Your Account
Some credit unions require you to make a minimum deposit to open the account, but others do not have this same requirement. Typically, the minimum deposit is small and is only to activate the services of the account. Be sure to inquire beforehand about what minimum deposits or fees are attached to the specific type of credit union account you have opened.
Some Credit Unions Have ATMs
Though not all credit unions do, some have relationships with other financial institutions and offer access to ATMs. If this is essential, ask in advance what ATMs are available.