Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (2024)

Reviews / Banking

8 min Read

By Cynthia Measom

  • Overview
  • Features
  • Products
  • How It Stands Out
  • Competitors
  • Applying
  • Who Is It For

GOBankingRates Score

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (1)

Digital Federal Credit Union

4.9

SCORE

GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.

Quick Take: DCU offers a wide variety of personal and business accounts as well as personal and commercial loans. Customers throughout the U.S. can access its surcharge-free network of over 80,000 ATMs, as well as 5,900 CO-OP Shared branches though its own branch locations are limited to Massachusetts and New Hampshire. For these reasons and others, GOBankingRates has ranked Digital Federal Credit Union as one of the Top 100 Banks of 2022.

  • APYs

    5.0

  • Benefits

    4.7

  • Products

    4.9

  • Customer Service

    4.8

How did we calculate this?

Pros

  • Full service banking including accounts, loans and retirement planning
  • No monthly maintenance fees or minimum account balances required
  • Highly competitive interest rates on your savings and loans
  • 5,900 CO-OP Shared branches and 23 DCU locations available nationwide
  • Membership available to practically everyone

Cons

  • Charges overdraft fees
  • Requires membership to access services
  • Primarily online banking for customers not in the New Hampshire or Massachusetts area

Digital Federal Credit Union Overview

Digital Federal Credit Union was established in 1979 and has its headquarters in Marlborough, Massachusetts. Over the decades, DCU has grown to over 900,000 members and ranks among the top 15 credit unions nationwide in terms of assets.

Credit unions require membership before you can open an account. DCU is readily accessible to nearly anyone. You can qualify for membership based on your employer, residence in the service area or by joining one of several organizations available, starting at a membership fee of $10 per year.

Once you’re an account holder, it’s likely you’ll find a branch near you to make cash deposits or for when you need one-on-one assistance. DCU has 23 branches in New Hampshire and Massachusetts plus another 5,900 CO-OP Shared branches.

Key Features

Digital Federal Credit Union is rated with a 4.9 out of 5 stars by GOBankingRates based on the following categories:

APY

Digital Federal Credit Union has competitive rates. For instance, its Primary Savings account pays APY on the first $1,000, which is over eight times higher than the national average for savings. In addition, DCU offers four types of CDs or certificates that pay as much as APY.

Benefits

Among the top benefits of banking with Digital Federal Credit Union is how easy and affordable it can be.Minimum opening deposits are the exception, not the rule, when it comes to DCU’s checking, savings and money market accounts. None of its checking options require a minimum opening deposit, and neither does its money market account. One of the two savings accounts requires a $5 minimum opening deposit, and the regular CD accounts require from $100 to $500 minimum deposits, while the jumbo account requires a $25,000 minimum opening deposit.

Monthly fees are another area where DCU shines brightly. This is because the credit union doesn’t charge fees on its accounts, which can really add up. Even with a $5 monthly fee, you would pay $60 in fees per year and $300 over five years.

Products Offered

Digital Federal Credit Union provides a range of banking products for every individual’s financial needs.

Checking

DCU’s Free Checking account has no minimum opening deposit or balance requirements and no monthly maintenance fees. Plus, you can earn APY on balances up to $100,000. Additionally, the account also includes an ATM payback feature. If you add direct deposit and make at least five transactions per month, DCU will reimburse up to $300 per year in out-of-network ATM fees. And you may be able to get your direct deposit paycheck, Social Security or pension up to two days early.

Savings Accounts

Digital Federal Credit Union has four savings accounts. DCU’s Primary Savings account pays one of the highest savings rates in the nation. Earn up to APY on the first $1,000 you deposit. You can open this account with just $5, but there are no monthly maintenance fees or minimums to earn.

The Advantage Savings account has no minimum opening deposit, no minimums to earn interest and no monthly maintenance fees.

Savings for specific goals is easier with the Holiday Club Savings account and Member Described Savings. There’s no minimum opening deposit, no minimum balance to earn and no monthly maintenance fees. Earn dividends on any size balance with the Holiday Club account. The only catch is you’ll need a $20 minimum monthly automatic transfer into the account. As for Member Described Savings, you’ll need at least $100 in each account you set up to start earning dividends.

In addition, DCU offers CDs with terms of 6 to 24 months as well as a money market account with rates starting at APY. You’ll need at least a $1,000 balance to earn dividends. As your account balance grows, so will your dividend rate.

Customer Service

DCU has multiple customer service options, including online banking secure email, phone or live online help. When it comes to customer service, knowing you can speak to a live person when you need to is important.

DCU information center specialists are available by calling 800-328-8797, Monday – Friday 8 a.m. to 9 p.m. and Saturdays from 9 a.m. to 3 p.m. EST. You can also apply for consumer, Visa, home equity or mortgage loans by pressing 3 to reach the 24-hour Consumer Loan Call Center, which can usually give you an answer to your loan request before you hang up.

How Digital Federal Credit Union Stands Out

DCU’s rates on its personal loans and savings products are extremely competitive, helping the credit union grow. The APY that DCU offers on its Primary Savings account is something you won’t find elsewhere. Even though you can earn the stellar rate only on the first $1,000, it’s still a rate that most financial institutions can’t compete with. Plus, in one year, you could earn over $63 on the $1,000 balance.

Digital Federal Credit Union vs. Competitors

Comparing a financial institution’s products and services is one way to get an idea of whether it’s the right choice for you. However, to get the bigger picture, it can help to compare DCU’s offerings to its competitors. Here’s what you should know.

Digital Federal Credit Union vs. BECU

BECU offers a credit card with 0% APR on purchases and balance transfers for the first 12 months, but DCU does not have a 0% APR offer on any of its credit cards. However, DCU offers a APY on the first $1,000 deposited into a Primary Savings account, and BECU’s prime rate is much lower for its Member Advantage Savings.

Digital Federal Credit Union vs. Service Credit Union

Service Credit Union offers a more worthwhile Holiday Club savings account. You can earn a higher APY compared to DCU’s account. However, while Service Credit Union does offer a very competitive APY of on the first $500 balance of its Primary Savings account, it cannot beat DCU’s rate.

How To Apply

To open an account, fill out an application, sign and mail it. You’ll need to select the account type you’d like to open and personal details including your Social Security number as well as a bank account number and routing number to fund the new account. You can also apply online for faster service.

Who Digital Federal Credit Union Is Best For

DCU is best for anyone who plans on growing a savings fund or borrowing to purchase a vehicle, buy a home or need any other type of loan. The credit union’s interest rates are among the best, saving you money in the long run — or helping your funds compound faster.

Final Take

If you’re looking for a financial institution that has no monthly maintenance fees, low or no minimum deposits and a stellar savings account rate, Digital Federal Credit Union might be the perfect pick. The credit union has checking, savings, CDs, retirement accounts and specialty accounts to meet your financial needs, plus a host of customer service options.

FAQ

  • Is DCU a real bank?
    • Digital Federal Credit Union is a real bank with over 900,000 members, 23 branches and a network of 5,900 Shared CO-OP branches nationwide.
  • What do I need to open a DCU account?
    • To open an account, you'll need to show you qualify through your employer, area of residence or by joining a partner organization for as little as $10. In addition, you'll need to fill out an application and provide your personal identifying information such as address, date of birth and Social Security number.
  • Is DCU bank FDIC insured?
    • DCU is a credit union and insured by the equivalent of FDIC, the NCUSIF. Your funds are covered up to $250,000 per person.
  • How much does it cost to open a DCU account?
    • Accounts at DCU are free. However, if you don't qualify for membership through your work or residence to access banking, you'll need to join a partner organization, starting at $10 per year.

Cynthia Bowman contributed to the reporting for this article.

Editorial Note: This content is not provided by Digital Federal Credit Union. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Digital Federal Credit Union.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of June 22, 2022.

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (2)

Is this your bank?

Thank You For Signing Up!

Get ready to receive top financial tips from the experts at GOBankingRates.

Take Advantage of our Best Offer(s)

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (3) DIVE DEEPER

Discover the Best Banks of 2024: Unveiling Our Top Picks!

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (4)

We've compiled a list of the top banks for this year!

Check Out Now

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (5) TAKE POLL

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (6) TAKE ACTION

Here Are the Pros and Cons of Using Multiple Banks

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (7)

Many banks are one-stop-shop financial institutions...

Learn More

As a seasoned financial expert with extensive knowledge in banking and personal finance, I can offer insights into the details presented in the article. My expertise is grounded in years of experience in the financial industry, keeping abreast of market trends, and understanding the intricacies of banking products.

The article discusses the Digital Federal Credit Union (DCU) and provides a comprehensive overview of its features, products, benefits, and how it stands out among competitors. Let's break down the concepts mentioned in the article:

  1. GOBankingRates Score:

    • The article mentions that the GOBankingRates Best Banks 2023 scores and rankings are objectively determined by the research/editorial team, indicating that there's a specific scoring formula used to evaluate banks.
  2. Digital Federal Credit Union Overview:

    • DCU was established in 1979, headquartered in Marlborough, Massachusetts.
    • It has grown to over 900,000 members and ranks among the top 15 credit unions nationwide in terms of assets.
    • Membership requirements include employer affiliation, residence in the service area, or joining specific organizations with a starting membership fee of $10 per year.
  3. Key Features:

    • DCU offers a variety of personal and business accounts, personal and commercial loans, and access to a surcharge-free network of over 80,000 ATMs and 5,900 CO-OP Shared branches.
    • DCU's branch locations are limited to Massachusetts and New Hampshire.
  4. GOBankingRates Score Categories:

    • APYs (Annual Percentage Yields): DCU is rated 5.0 for competitive rates on savings and loans.
    • Benefits: DCU scores 4.7 for features such as no monthly maintenance fees, competitive interest rates, and accessibility.
    • Products: DCU scores 4.9, offering a range of banking products including accounts, loans, and retirement planning.
    • Customer Service: DCU scores 4.8, providing various customer service options, including online banking secure email, phone, and live online help.
  5. Products Offered:

    • Checking: DCU offers Free Checking with no minimum opening deposit or balance requirements, no monthly maintenance fees, and the possibility to earn APY on balances up to $100,000.
    • Savings Accounts: DCU has four savings accounts, including the Primary Savings account with a competitive APY on the first $1,000.
    • CDs and Money Market: DCU provides CDs with terms of 6 to 24 months and a money market account with rates starting at APY.
    • Customer Service: Multiple customer service options, including online banking secure email, phone, or live online help.
  6. How Digital Federal Credit Union Stands Out:

    • DCU stands out for its competitive rates on personal loans and savings products, with a noteworthy APY on the Primary Savings account.
  7. Comparison with Competitors:

    • DCU is compared with BECU and Service Credit Union in terms of credit card offers, savings account rates, and other features.
  8. How To Apply:

    • The article provides information on how to open an account with DCU, including filling out an application and the qualification process.
  9. Who Digital Federal Credit Union Is Best For:

    • DCU is recommended for those looking to grow savings or borrow for various needs due to its competitive interest rates.
  10. FAQs:

    • Answers to common questions about DCU, including membership requirements, FDIC insurance (covered by the NCUSIF), and account opening costs.

In summary, this article provides a thorough review of Digital Federal Credit Union, covering its offerings, features, and how it compares to competitors, making it a valuable resource for individuals seeking information about banking options.

Digital Federal Credit Union Review: No Monthly Fees and a Superior Savings Rate (2024)

FAQs

Is Digital Federal Credit Union legit? ›

Digital Federal Credit Union is a legitimate financial institution with over 1 million members across the U.S. It is federally insured by the National Credit Union Administration (NCUA). Even for individuals not near the New England area, membership is available through many other options.

Does DCU have a monthly fee? ›

Every member enjoys these benefits automatically:

No minimum balances or monthly maintenance fees.

Are digital credit unions safe? ›

Most online banks and credit unions are federally insured, which means that the US government will protect your money in the event the bank or credit union fails.

Is DCU Advantage savings account good? ›

Minimal fees and low costs

Currently, the DCU high-yield savings account called The Advantage Savings account has a 3.56% APY1 (see rates & disclosures). The national annual percentage yield (APY) for traditional savings accounts is . 58%2.

What is the digital federal credit union lawsuit? ›

The class action lawsuit claimed that Digital charged members overdraft fees even when they had enough money in the ledger balances of their checking accounts, but not their available balances, to cover a payment.

Can anyone open an account at DCU? ›

Eligibility by Community

You are automatically eligible to join DCU if you live, work, worship, or attend school in one of the communities in our list. Any business or other legal entity located in one of these areas is also automatically eligible to join.

How much does it cost to attend DCU? ›

Undergraduate Fees 2024-2025
Course TitleStudent ContributionNon EU Fee
Bachelor of Education in Technology, Engineering and Graphics - (Post-Primary)€3,043€14,900
Early Childhood Education€3,043 per annum€15,000 per annum
Education and Training€3,043 per annum€15,000 per annum
Foundation Programme in Education and Training
11 more rows

Does DCU do a hard credit check? ›

DCU Personal Loans don't require prequalification or soft credit checks before the final application. Once an application is submitted, there is a hard inquiry, which is when a lender makes a credit information request that includes your full credit report.

What is the downside of a credit union? ›

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

What are three cons of a credit union? ›

The downside of credit unions include: the eligibility requirements for membership and the payment of a member fee, fewer products and services and limited branches and ATM's.

Can credit unions fail like banks? ›

Experts told us that credit unions do fail, like banks (which are also generally safe), but rarely. And deposits up to $250,000 at federally insured credit unions are guaranteed, just as they are at banks.

How do I withdraw money from my DCU savings account? ›

Mobile
  1. Log into your Digital Banking Mobile App.
  2. Select the Move Money tab and click Transfer Money or go to Accounts and select the account you wish to transact with and select either Transfer In or Transfer Out.

Which credit union has the best savings account? ›

If you're only planning to hold a small amount in your savings account, Digital Federal Credit Union (DCU) Primary Savings can yield generous returns. Primary Savings currently offers a 6.17% APY on up to $1,000 and 0.16% to 6.17% thereafter.

What is the minimum balance in DCU savings account? ›

MONTHLY FEE

Requires a $5.00 minimum balance to open the account and remain on deposit to maintain membership status.

How do you know if a credit union is legit? ›

You can tell if your credit union is federally insured by NCUA by searching for a credit union in Find a Credit Union (Opens new window). In addition, credit unions must display in their offices the official NCUA insurance sign.

Are federal credit unions safe? ›

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

Is digital bank safe? ›

If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.

References

Top Articles
Latest Posts
Article information

Author: Ouida Strosin DO

Last Updated:

Views: 5537

Rating: 4.6 / 5 (76 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.