This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.
Military life is unlike any other way of life and comes with its own set of challenges—like frequent moves, deployment schedules, tight budgets or even long-distance family planning. That’s why more and more military families are switching from traditional banks to credit unions. They are seeking more flexibility, tailored service, and financial products that more accurately reflect their lifestyle.
Here are five reasons military families are making the move and why it might be the right time for you, too.
1. Credit unions are not for-profit businesses
At their core, credit unions and banks serve similar functions: checking accounts, savings, loans, credit cards, and online banking. But the biggest difference is who they serve and why.
Traditional banks are for-profit institutions owned by shareholders. Their primary goal is to earn profits for investors, which often means higher fees and lower interest paid on your deposits.
Credit unions are member-owned, not-for-profit cooperatives. They return earnings to members in the form of lower loan rates, fewer fees, and better savings returns. Credit unions are focused on service, not profit.
2. Lower fees and better rates save you up to $461 per year
For military families on tight budgets, every dollar counts. One of the biggest draws of credit unions is how much you can save on fees and interest compared to traditional banks.
Credit unions generally offer lower auto and home loan rates, higher yields on savings accounts and CDs, and fewer account fees (like no monthly maintenance or overdraft fees). It might not sound like much, but little numbers can add up over time to make a big difference in your finances, especially if you’re financing large purchases like cars or homes—or working to pay down high-interest debt.
3. Nationwide access, no matter where you’re stationed
One common myth is that credit unions are “too local.” In reality, many credit unions like Navy Federal Credit Union, the biggest credit union in the world, are part of nationwide ATM and branch-sharing networks. These networks allow members access to 30,000+ fee-free ATMs and thousands of shared branches across the country.
Even better, most credit unions now offer digital banking features, like check depositing, subscription management, and bill pay. It’s easier than ever to manage your finances while deployed, moving, or on the go. Some credit unions, like Navy Federal, even offer 24-hour customer support so you can talk to a real person on the phone anytime. Navy Federal’s stateside member reps are available 24/7.
4. Military-friendly support and understanding
Military life is different and credit unions often understand those differences better than big banks, especially military credit unions like Navy Federal.
In fact, Navy Federal is specifically chartered to serve U.S. military members, veterans, DoD employees, and their families. It was founded by seven Navy Department employees during the Great Depression. This deep connection to the military community shapes NFCU’s products, services, and overall approach to their mission of “Mission First, People Always.“
Because of this, they also offer flexible loan terms that take deployments and frequent PCS moves into account—offering specialized mortgage and VA loan programs to help you maximize your military benefits. Navy Federal also offers financial education and counseling for families in transition because they understand the ins and outs of military life.
These are more than just perks: they’re financial support systems can your life easier and as stress-free as possible, especially during the unpredictable phases of military life.
5. Exclusive perks and long-term value
Credit unions often provide extra value beyond traditional banking, with exclusive offers, member rewards, and partnerships that benefit their communities.
For example, Navy Federal offers members a $250 bonus when they purchase a car through their Car Buying Service, powered by TrueCar®, and finance it with them now through August 2025 (Your car purchase and financing must be completed by Sept. 2, 2025 in order to be eligible for the bonus. Terms apply). The Navy Federal Car Buying Service helps members find competitive prices on new and used cars while simplifying1 the shopping process with no-haggle pricing.
Switching to a credit union can be a powerful step toward simplifying your finances, saving money, and getting support that understands your life in the service.
While traditional banks offer national reach and brand recognition, they often fall short in areas that matter most to military families: personalized service, low fees, and flexibility during life’s transitions. Credit unions offer a member-first alternative with real financial advantages.
If you’re active duty, retired, a DoD civilian, a military family member, or even a household member (including roommates), you qualify to join Navy Federal Credit Union. Take the time to explore your options and see how a member-owned financial partner could help you thrive, no matter where your next orders take you.
1 To be eligible for the $250 bonus offer (the “Bonus Offer”), Navy Federal members must use the Navy Federal Car Buying Service powered by TrueCar to receive an offer on a new or used vehicle from a TrueCar Certified Dealer and between June 1, 2025 and September 2, 2025: a) Make a vehicle purchase through that dealership, and b) Complete the financing of that vehicle with a Navy Federal auto loan (including providing Navy Federal a signed promissory note). The auto loan must be open for at least 60 days to be eligible for the Bonus Offer, which will be deposited into the primary applicant’s savings account within 120 days of the loan origination date. To receive the $250 bonus, all Navy Federal accounts must be in good standing at the time the bonus is scheduled to be deposited into the savings account. Refinance loans are not eligible for the Bonus Offer. The Bonus Offer may end at any time without prior notice. Recipient is solely responsible for any personal tax liability arising out of the Bonus Offer.