Credit Union Field of Membership Explained

If you want to join a credit union, you have to be part of the credit union’s “field of membership.”

This means you must share a “common bond” with the other members of the financial institution — one of the major differences between credit unions and banks.

But have no fear — you certainly have a common bond with the members of SOME credit union.

You just have to find the right one. And we can help.

All federal credit unions are chartered to serve one or more groups of people sharing a common bond, and field of membership will naturally vary based on an institution’s individual charter type.

So, What are the Different Types of Charters?

The Federal Credit Union Act established three different charter types:

(1) community, or residentially-based, charters, which serve a specific geographic area;

(2) single common bond charters, which serve either occupational or associational groups; or

(3) multiple common bond charters, which may combine either or both occupational and associational common bonds.

A community credit union’s field of membership includes all persons and businesses who live in, worship in, attend school in, or work within the specified geographic area.

The field of membership of a single common bond credit union is made up of one group that shares a common bond.

A multiple common bond credit union’s field of membership may include more than one group — referred to in this case as Select Employee Groups — along with underserved areas.

How Do I Know If I’m Part of a Credit Union’s Field of Membership?

All credit unions should clearly state their membership parameters on their website and/or in additional material to allow prospective members a simple and straightforward answer to that question.

However, if you’re not even sure where to start, our field of membership tool will show you exactly which credit unions you’re eligible to join, as well as provide specific information on how you can become a member.

And while at times the regulations surrounding field of membership may seem daunting, it’s important to remember that everyone in the United States is eligible to join at least one credit union — and likely several more.

Is It Possible to Change a Charter?

Yes — a credit union may apply to the NCUA to convert its charter from one to another; a credit union may also apply to the NCUA to amend its current charter.

Why Would a Credit Union Convert or Amend Its Charter?

Converting from one charter to another, or amending an existing charter, can bring with it a host of benefits. First and foremost, a new or updated charter may allow a credit union to increase its field of membership by adding new groups or geographic areas.

Also, a new charter can help ensure that a credit union is continuing to serve its mission, even as the institution’s community and membership has evolved.

In other words, unlike a bank, which often is a static institution, credit unions sometimes change to meet the needs of their members.

Now, if you want to find the right credit union for you, let’s go.