Why Your First Checking Account Should Be at a Credit Union

Opening your first checking account is a major financial milestone. Whether you're turning 16, heading off to college, or starting your first job, choosing the right financial institution will shape your banking experience for years to come. While big banks might seem like the obvious choice with their flashy marketing and nationwide presence, there's a compelling case for starting your banking journey with a credit union instead.

What Makes Credit Unions Different

The main difference between a credit union and a traditional bank is that credit unions are not-for-profit, whereas banks are for-profit enterprises. This fundamental difference affects everything from the rates you earn to the service you receive.

When you open an account at a bank, you become a customer. When you join a credit union, you become an owner. Credit unions are not-for-profit, member-owned institutions focused on meeting the financial needs of their community. This means that instead of maximizing profits for shareholders, credit unions return their earnings to members through better rates, lower fees, and enhanced services.

Why Young Adults Are Choosing Credit Unions

Recent research shows that younger consumers are more open to credit unions than you might think. Although 79% of Gen Z and 69% of millennials have chosen a large bank as their primary financial institution, roughly half of younger consumers are willing to switch to a community bank (52%), online-only institution (50%), or credit union (47%).

What's driving this openness? Features they prioritize are: Modern Digital Banking in Online and Mobile Platforms: Younger generations have grown up in an era of smartphones and instant access. Currently, 53% of Gen Z and 51% of millennials identify digital banking as a top need for choosing a new institution.

The good news is that today's credit unions offer the digital banking experience younger consumers demand while maintaining the personal touch and member-focused approach that sets them apart from big banks.

The Financial Benefits Start with Your First Deposit

Higher Interest Rates

Credit unions may have higher deposit yields than banks in some cases. While many traditional bank checking accounts pay practically nothing in interest, credit unions often offer competitive rates that help your money grow.

Take Public Service Credit Union's new Surge Checking Account, which offers an industry-leading 10% APY on your first $1,000. That means you could earn up to $100 per year just for keeping money in your checking account – money that would sit idle earning pennies at most traditional banks.

Lower Fees

Due to their not-for-profit status, credit unions typically charge lower or no fees for account maintenance, overdrafts and ATM use. When you're just starting out financially, every dollar saved on fees is a dollar that can go toward your goals.

Many credit unions, including Public Service Credit Union, offer checking accounts with no minimum balance requirements and low monthly fees that are easily waived. Public Service Credit Union's Surge Checking Account, for example, has no minimum balance requirements and just a $5 monthly maintenance fee that's easily waived when you enroll in e-statements or are age 60 or better.

Better Loan Rates When You Need Them

Credit unions typically charge lower interest rates for loans than banks. Whether you're financing your first car, paying for college, or eventually buying a home, starting your relationship with a credit union positions you for better rates on future borrowing.

The Service Difference You'll Actually Notice

Personalized Customer Service

Credit unions tend to be local or regional and often service a specific community. As such, the service a credit union provides may be more personalized. At a credit union, you're not just another account number in a massive database. You're a member of a community.

Credit unions provide more personalized customer service than banks do, says Brandon Goldstein, a chartered financial consultant at Prudential Financial. When you have questions about your account, need help with a financial decision, or run into issues, you'll work with people who know you and genuinely want to help you succeed.

Community Investment

Credit unions are famous for their dedication to community development and support. Unlike large banks, which tend to focus more on profit margins than community needs, credit unions have a more personal way of giving back. When you bank with a credit union, your deposits help fund loans for your neighbors, support local businesses, and contribute to community development projects.

Financial Education and Guidance

According to a Marketwatch survey, more than one-third of Gen Z and Millennials are looking to their banking institution for financial advice. Credit unions excel at providing financial education and counseling services to help members make smart money decisions.

At Public Service Credit Union, members have access to free financial counseling with a Certified Credit Union Financial Counselor (CCUFC) who can help with budgeting, debt management, credit score improvement, and financial planning. This kind of personalized guidance is invaluable when you're learning to manage money independently.

“When you open an account at a bank, you become a customer. When you join a credit union, you become an owner.”

Modern Digital Banking Without the Corporate Feel

Digital-First Experience

Modern digital banking tools and experiences are critical for attracting younger consumers, and a majority of these individuals say digital banking is at the core of their banking preferences Today's credit unions understand this and have invested heavily in digital platforms.

Gen Z consumers are almost 2.5 times as likely as baby boomers to say they want a speedy online purchase journey. Credit unions are delivering on this expectation with mobile apps, online account opening, instant transfers, and mobile payment options like Apple Pay and Google Wallet. Public Service Credit Union's debit cards are compatible with Apple Pay, Google Wallet, and Samsung Pay, giving you the flexibility to pay how you want, when you want.

Innovation That Makes Sense

Unlike big banks that often roll out complex products you don't need, credit unions focus on innovations that actually benefit their members. Gen Z's financial philosophy is shaped by a "let's do something now, or let's not do it" mentality. Credit unions respond with straightforward products, transparent pricing, and features that solve real problems.

Your Money Is Just as Safe

One concern some people have about credit unions is safety. Rest assured that FDIC banks and NCUA credit unions are both backed by the full faith and credit of the U.S. government and offer similar protections. Both institutions protect up to $250,000 per depositor, per federally insured bank or credit union, per ownership category.

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. Your money is protected whether you choose a credit union or a traditional bank.

Making the Smart Choice for Your Future

Start Building Relationships Early

When you join a credit union early in your financial journey, you're not just opening an account – you're building a relationship that can benefit you for decades. As your financial needs evolve from a simple checking account to auto loans, mortgages, and investment products, having an established relationship with a member-focused institution can save you thousands of dollars over your lifetime.

Avoid the Fee Trap

80% of Gen Z actively look for the lowest cost financial services, making them the most cost-conscious generation surveyed. Starting with a credit union helps you avoid the fee-heavy products that big banks often market to young adults. Instead of getting caught in cycles of overdraft fees and maintenance charges, you can focus on building healthy financial habits.

Learn From People Who Care

Institutions that provide educational resources to help users manage money and improve spending habits and financial acumen will appeal to younger consumers. Credit unions excel at financial education because they're invested in their members' long-term success, not just short-term profits.

“Credit unions offer something more valuable: a genuine partnership focused on your financial well-being.”

Getting Started Is Easier Than You Think

Membership Requirements

While credit unions do have membership requirements, these are typically much broader than people realize. Many credit unions serve specific communities, employers, or associations, but some offer simple ways to join regardless of your background.

For example, Public Service Credit Union serves employees of WEC Energy Group and their families, including immediate family members like spouses, parents, children, and grandparents. Even if you don't meet the employment requirement, many credit unions offer alternative ways to become eligible through small donations to affiliated organizations.

Simple Account Opening

Digital Account Opening: The ability to open an account online or on a mobile device is an imperative for 41% of Gen Z and 38% of millennials when selecting a financial institution. Today's credit unions make it easy to join and open accounts online, often with lower minimum deposits than traditional banks.

The Bottom Line

Your first checking account sets the foundation for your entire financial life. While big banks may grab your attention with marketing campaigns and sign-up bonuses, credit unions offer something more valuable: a genuine partnership focused on your financial well-being.

Generation Z — the demographic born between 1997 and 2012 — is reshaping how banks and FinTechs attract and retain customers. This digitally-native group prefers FinTech platforms over traditional banks. According to recent PYMNTS research, 54% of Gen Z individuals rely primarily on non-traditional financial service providers, valuing real-time payouts and companies aligning with their social values.

Credit unions align with these values perfectly. They offer competitive digital experiences, better rates, lower fees, and a commitment to their communities that goes beyond profit margins. When you choose a credit union for your first checking account, you're not just making a smart financial decision – you're joining a community that's invested in your success.

Whether you're looking for an account that pays you to bank (like Public Service Credit Union's Surge Checking with its 10% APY), need access to financial education resources, or want to work with people who know your name, credit unions offer everything you need to start your financial journey on the right foot.

Ready to make the smart choice for your first checking account? Contact Public Service Credit Union at (715) 842-9865 or visit publicservicecu.org to learn more about membership eligibility and get started today.

Public Service Credit Union is federally insured by the NCUA. APY = Annual Percentage Yield. Rate may change after account is opened. Fees may reduce earnings.