If you're new to the federal government, or are simply seeking employment there, you may not know about federal employee credit unions. It is best to take the time to learn though, since it could save you a lot of money.

Federal employee credit unions are financial institutions that usually offer better rates and fewer fees than you are used to seeing at banks. Other important points include:

1. A federal government credit union serves more than just federal employees.

2. Federal government credit unions number in the dozens, so there's a good chance you can join one.

3. In addition to traditional government credit unions, there are also military credit unions that cater to service members.

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Find a federal employees credit union that you can join

Unlike banks, federal employee credit unions, and all credit unions in general, have rules about who can use their services. You have to qualify through your employer, via a household member or sometimes by where you live, work or go to school. The rules are different depending on the credit union.

I recommend: Go to the Credit Union National Association's credit union locator to find credit unions for federal employees in your area. Also ask human resources if credit union membership is included in your benefits package. Even if you don't work for the government, your company could still qualify as a select employee group. A-K Valley Federal Credit Union has a good explanation of how this works.

Learn about the services your federal employee credit union offers

To become a member of your federal employees credit union, all you have to do is open a savings or 'share' account with a minimal amount of money -- usually $5 to $50. But, to really take advantage of your membership, you should not stop there.

I recommend: Go to the Houston Federal Credit Union's website to read up on terms you may encounter that you don't understand. Some account names are different at credit unions than they are at banks. For instance, savings accounts are called "shares." Then check out Bankrate's web page comparing banks and credit unions. Finally, go to your credit union's website and do some rate shopping.

Start using federal employees' credit unions and save some cash

Once you've got a good idea of what your federal employee credit union offers, start using it. It could be one of the best financial decisions you've ever made.

I recommend: Before you put a significant amount of money away in the credit union, make sure it is federally insured. Most are, but there are exceptions. If yours is insured, it will have the National Credit Union Association's logo on its website and in its branches. This guarantees your savings for up to S250,000 plus an additional $250,000 for your IRA savings. Some credit unions also offer Excess Share Insurance to provide up to $250,000 more than the federally insured amount.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Just because a credit union has the word 'federal' in its name doesn't mean that it's a federal employee credit union. Lots of credit unions use it to reinforce that they're federally insured.

Federal employee credit unions are an attractive benefit to offer your employees. As more and more companies are forced to cut many traditional employee incentives due to rising costs, offering memberships to a federal employee credit union can be a valuable incentive to bring aboard good, long-term workers.

Federal employee credit unions operate like most banks and membership definitely has its perks. Federal employee credit unions come with benefits like lower interest rates on various loans, and lower upfront fees. Members also typically enjoy higher interest returns on savings accounts and CDs. There are even special promotional offers that only federal employees credit unions can offer to their members including deals on vacations, hotels and theme parks. Business managers and recruiters can offer such an incentive to potential workers in situations like the following:

1. To attract long-term, reliable secretarial staff to military bases or government offices for employment.

2. To retain postal workers including mail carriers with the attractive benefit of a federal employee's credit union.

3. To recruit support staff for federal offices.

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Benefit from higher returns on savings accounts with a credit union for federal employees

When it comes to high interest rate savings accounts like money market accounts or a CD, the higher the rate the better. Higher rates mean more money in your employees' pockets. This is just one great benefit to belonging to a credit union for government employees and is a great talking point when recruiting.

I recommend: A lot of government agencies have their own federal employee credit unions. Interior Federal Credit Union is for volunteers and employees of the Department of the Interior and all of the agencies that it houses. Congressional Federal Credit Union serves members of Congress, their family and staff.

A credit union for government employees gives access to low interest rates on home mortgages

Be sure to point out that a credit union for government employees offers specific services and benefits like low mortgage rates. A federal government credit union will typically have lower rates on mortgage loans than traditional banks and other mortgage resources. Credit unions for federal employees can be a huge help to prospective home buyers by getting them the best monthly rate on their loan.

I recommend: Pentagon Federal Credit Union and America's Credit Union offers its members competitive rates on mortgage loans. Each is a credit union for federal employees and military families.

Save hundreds of dollars when buying a car through a federal employee credit union

Whether employees are looking for a new car or a used car, credit unions for federal employees can make buying a car much more pleasant.

I recommend: USA Federal Credit Union offers auto loan services and membership is open to active and retired military, members of the Civil Service, Federal Civilian Employees and Department of Defense employees and contractors, just to name a few. Navy Federal offers auto loans and leasing options to members including Army, Navy, Air Force and Marine Corps active duty personnel, retirees and reservists, National guard, DoD civilian employees and family members.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to include the perks of membership at a government employee credit union when sending an offer letter outlining salary and benefits to a potential employee. Dividends are returned to the members when there are excess funds which is a benefit that is often overlooked.

A federal government credit union is a not-for-profit financial institution that primarily serves federal employees. It's a way for these people to save money on financial services, particularly savings accounts and loans.

Federal employees' credit unions are also cooperatives, which means that those who hold accounts have "shares" in the credit union. This makes them able to vote for members of the board of the directors and even to run for a credit union office. Other unique aspects include:

1. Federal employee credit unions reinvest their profits in the credit union or offer them as dividends.

2. To join a federal employee credit union you have to be in a particular field of membership.

3. A federal employee credit union can operate in secured buildings or on military bases, making some branches inaccessible to the general public.

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Learn about how a credit union for federal employees works

A credit union for government employees is a unique, but not exclusive, type of organization. It operates in the same way as a typical credit union. Thus, it's best to gain a good knowledge of credit unions in general.

I recommend: Visit the Credit Union National Association's "What is a credit union?" page to learn more about credit unions and how they got started. Once you've learned the federal employees' credit unions basics, visit TCUnet to find out how money in credit unions is insured. Unlike banks, they do not work with the FDIC.

Find out which agencies have a federal employee credit union

Just because you're a federal employee doesn't mean there is a government employee credit union available to you. It is up to each agency to start their own credit union or petition for membership in an existing one.

I recommend: To find out if an agency has a credit union, the easiest thing to do is contact the agency's human resources department. Go to USA.gov to find a list of federal agencies and contact information. Or, if you already know where the agency is located, you can try the Credit Union National Association's locator tool. Just be aware that the name of the credit union may be different from the name of the agency. For instance, Tower Federal Credit Union serves employees of the National Security Agency.

Discover other ways to be a federal employees' credit union member

Just because some agencies lack credit unions for federal employees, this doesn't mean all federal employees can't be credit union members. There are lots of other ways to be eligible to join.

I recommend: Go to the website of each federal employees' credit union you're interested in. Find the join us or about us link and read the requirements for membership. You may be surprised. For example, you'll find that the Engraving and Printing Federal Credit Union accepts employees of the Department of the Treasury. If you're not eligible through your employer, you could be eligible through a household member or immediate family member. The Agriculture Federal Credit Union has a good definition of what most credit unions define as a household member on its website.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Membership in a federal employee credit union does not give you automatic access to credit union branches in secure areas. You still need the proper credentials.

Many are surprised to learn that a federal employees' credit union is, in fact, quite different than a traditional bank. Credit unions are not banks. They are cooperatives of groups or individuals united under one umbrella, by virtue of sharing a commonality. While banks and credit unions do share much of the same terminology, credit unions also use terms that are quite unique. It is beneficial to understand the key terms used before opening an account with a federal employees' credit union.

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Natural-person credit union

Almost all credit unions insured federally are classified as natural-person credit unions. This means that their membership is comprised of real people or individuals as opposed to corporations.

I recommend: HowStuffWorks, Inc. explains how natural-person and corporate credit unions work, as well as the differences between them.

Common bond

The members of a federal credit union have membership in the organization by sharing a common bond. For instance, most branches of the armed forces have credit unions whose members share the common bond of serving in the U.S. military.

I recommend: The Policy Archive includes an article abstract discussing a court case in which a federal credit union was not allowed to expand its membership base by combining common bonds.

Credit committee

The credit committee of a federal employees' credit union does not exist in all instances. This optional internal committee is responsible for reviewing loan and credit line applications. It is not uncommon for a credit union to have a loan officer on staff to handle this responsibility, in which case the credit committee ratifies any applications approved by the loan officer.

I recommend: In 2008, Missouri's General Assembly revised its statutes pertaining to the duties of a credit committee. The description of the duties does a wonderful job explaining a credit committee's function.

Membership field

A federal employee credit union's membership field is the type of membership that it serves. For instance, an 'education' credit union usually serves individuals and families with ties to U.S. schools or universities.

I recommend: FindLaw includes an article discussing rules put forth in 2003 by the National Credit Union Administration allowing credit unions to expand their membership fields to increase their rosters. This article further explains the key terms "membership field" and "common bond".

National Credit Union Share Insurance Fund

The National Credit Union Share Insurance Fund (NCUSIF) is the federal share insurance fund for credit unions. Comparable to the FDIC, which protects traditional banks, the NCUSIF protects members' shares in credit unions chartered by states and the federal government. Individuals' shares are protected up to $100,000.

I recommend: The National Credit Union Association (NCUA) website provides a detailed explanation of the insurance fund.

Supervisory committee

The supervisory committee of a federal employees' credit union is another internal committee. Unlike the credit committee, the supervisory committee is not optional and is responsible for overseeing the credit union's financial operations. In addition, the supervisory committee arranges internal and external audits.

I recommend: Addison Avenue Federal Credit Union's website describes the responsibilities of its supervisory committee.