According to data from the National Credit Union Administration (NCUA), credit union membership stood at approximately 145 million members as of the third quarter of 2025, as many consumers have come to realize the benefits of non-profit, member-focused financial institutions.
Credit unions tend to offer lower rates on auto and home loans and higher annual percentage yields (APYs) on savings accounts than big banks, helping consumers in Long Island and across the country offset rising living costs and fees.
Read on to learn more about why Long Islanders are increasingly moving away from banks and joining credit unions, and how you can join Island Federal Credit Union today.
The Shift Is Happening and the Numbers Prove It
If the 145 million current credit union numbers aren’t impressive enough, consider NCUA data also states 3.1 million were added over the year, contributing to a credit union record pertaining to assets, deposits and loans. Further data indicates that more people are using credit union cards as their primary credit card. Moreover, research shows that 1 in 4 Americans is considering joining a credit union.
Long Island isn’t immune to the affordability challenges many parts of the rest of the country are experiencing, which makes joining a credit union a fiscally responsible choice. Any opportunity to save on auto or home loans, or earn more on savings, simply makes every dollar go further.
Lower Fees That Keep More Money in Your Pocket
One of the biggest differentiators between credit unions and banks is also one of a credit union’s biggest competitive advantages. Credit unions are non-profit, member-focused entities, meaning they return profits to their members and not shareholders. This often results in credit unions being able to offer lower fees, better interest rates and more flexibility on ATM usage, overdraft protection and minimum balances.
At Island Federal, these benefits extend to free cash back checking and transparent fee disclosure, providing members with the opportunity to save up to hundreds of dollars per year. In a high-cost-of-living area such as Long Island, every dollar saved matters.
Better Rates on Savings, Certificates, and Loans
Higher APYs on savings, money market accounts and share certificates, and lower interest rates on auto loans, mortgages, personal loans and credit cards all add up in significant savings over months and years.
Share certificate accounts specifically grew more than 10% industry-wide as of the first quarter of 2025, making this an increasingly popular savings option.
At Island Federal, we offer more than just higher APYs on savings accounts and lower interest rates on financed purchases; we also offer specialty programs such as our “Cut-The-Cost” and “Dream-It, Achieve It” mortgage programs to help our Members save even more over the loan term and improve overall financial well being.
How Rate Differences Add Up for Long Island Families
Curious just how rate differences you’re privy to at a credit union can add up over time? Consider this scenario and how much you can save by securing lower interest rates on financed purchases.
- You secure a 4.99% interest rate on your auto loan with a credit union like Island Federal compared to a 6.56% interest rate, which is about the national average.
- Assuming you’re financing a $40,000 vehicle, choosing the 4.99% interest rate will save you about $30 per month on your payments and more than $1,700 in interest over the life of the loan, assuming a five-year loan term.
Personalized Service, Not Just Another Account Number
At banks, you might be considered just another name on a spreadsheet or a number in a database. But when you bank at a credit union, you’re treated as a valued member, and it’s largely thanks to the not for profit service-focused operation of such financial entities. In fact, J.D. Power data shows that credit union satisfaction ranks about 74 points higher than the average national bank. A separate First Tech survey discovered that nearly 40% of consumers are willing to switch financial institutions for better service.
A big part of the premium member experience is the size of most credit unions. Rather than work with a national customer base, most credit unions are regional and have smaller member bases. These characteristics also promote better local decision-making from credit union employees who live and work in the community, just like you.
At Island Federal, we’ve operated for more than 70 years on Long Island. With 8 physical branch locations and a dedicated support team that offers both in-person and virtual appointments, we pride ourselves on meeting our Members where they are.
Community Roots That Make a Difference
Credit unions don’t just pass on profits to their members in the form of higher APY and lower interest rates; we also reinvest in the communities where our members live, work and worship. At Island Federal, we’re proud to award $25,000 in annual scholarships to high school seniors, and support area film festivals, veterans homes, children’s hospitals and more.
We’re also committed to ensuring the banking safety of vulnerable community members, as evidenced by our completion of the AARP BankSafe Training program, the first Long Island-based credit union to have done so.
Your Money Is Just as Safe, If Not Safer
Think your money is safer at a bank compared to a credit union? Think again.
The NCUA provides the same $250,000-per-depositor protection for credit unions as the FDIC does for banks, giving you peace of mind that your money is safe with any federally insured credit union, including your checking and savings accounts.
Modern Banking Convenience Without the Big Bank Price Tag
Many consumers stick with the big banks for their large national network and advanced technology that makes banking easier. Yet, many of these same conveniences are also offered by credit unions.
Like banks, credit unions offer online banking, mobile banking apps (including with check deposit), account alerts, automatic bill pay and 24/7 around-the-clock access. At Island Federal Credit Union we also offer more than 125,000 fee-free ATMs in our network and 5,600 shared service centers nationwide. This is all in addition to our eight local branches throughout Nassau and Suffolk Counties.
How to Switch from a Bank to a Credit Union on Long Island
Ready to get started? Applying for a loan or opening an account only takes minutes and can be done from your desktop or phone. Click here to start saving or become a member!
Join the Long Islanders Who Are Banking Smarter
Ready to take advantage of higher APYs and lower interest rates and account fees? Ready to experience better, more personalized service and a suite of advanced technologies to make banking easy and convenient?
It’s easy to get started with Island Federal and experience what tens of thousands of Long Islanders have since our credit union was established in 1955. Stop into one of our local branches, visit us online or call 631-851-1100 to begin your credit union journey.
Frequently Asked Questions
What is the difference between a credit union and a bank?
The biggest difference between a credit union and a bank is in their overall structure. Banks are for-profit financial institutions that strive to maximize returns to their shareholders, while credit unions are non-profit, member-owned entities that focus more on benefiting their members. While banks offer a wider range of financial options, credit unions tend to offer members lower fees and better interest rates.
Are credit unions safer than banks?
Credit unions and banks are both generally safe for deposits up to $250,000. Credit unions are insured by the National Credit Union Administration, while banks are insured by the Federal Deposit Insurance Corporation.
Why are credit unions better than banks for savings?
Since credit unions are non-profit, member-focused financial institutions, they are more likely to reinvest any profits back into their members in the form of higher APYs on savings accounts and lower fees.
How do I join a credit union on Long Island?
Make sure you meet the credit union’s eligibility requirements, then complete an application to get started.
Do credit unions offer the same services as banks?
Credit unions offer nearly all the same services as banks.
Can I access my credit union account from anywhere?
Thanks to online banking and mobile apps, credit unions offer easy accessibility from anywhere. Many credit unions also have shared branch networks.
Are credit union loan rates lower than bank rates?
Yes, thanks to their non-profit, member-focused status, credit unions typically offer lower interest rates on auto loans, mortgages and other offerings. It’s not uncommon for credit unions to offer interest rates 1-2% less than banks.