Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
The bottom line: Local Government Federal Credit Union is specifically for North Carolina’s local government employees and volunteers. It might be worthwhile if you’d like to open an account with a low initial deposit. If you prioritize finding a free checking account, our best free checking accounts guide will likely have more appealing accounts.
Overall credit union ratings
FeatureInsider rating (out of 5)Savings4Checking3.75Money market account3.75CD4Trustworthiness3Total3.75
Pros and cons
ProsConsCertified as a community development financial institution; primarily serves low-income and disadvantaged communities
Low minimum opening deposits on a variety of accounts
Possible to waive monthly service fees on savings and money market accounts
Solid interest rates on bank accounts compared to other brick-and-mortar financial institutions
Membership is limited to North Carolina’s local government employees/volunteers and their families or household membersMonthly service fees on savings, checking, and money market accountsOnline banks offer higher interest rates on bank accounts
Local Government Federal Credit Union Share Savings
To become a member of Local Government Federal Credit Union, you must open a Local Government Federal Credit Union Share Savings account.
Local Government Federal Credit Union Share Savings could be worthwhile if you regularly maintain at least $25 in your account. Otherwise, you’ll have to pay a $1 monthly service fee.
This savings account offers a higher interest rate than the average savings account, but you can still find even more competitive savings rates through online banks.
Local Government Federal Credit Union Checking Account
The Local Government Federal Credit Union Checking Account may be appealing if you’d like to earn some interest on your checking account balances. This account offers Local Government Federal Credit Union Checking Account Annual Percentage Yield (APY) as long as you maintain a positive account balance.
You’ll probably want to consider other financial institutions if your goal is to find a free checking account. The Local Government Federal Credit Union Checking Account has a $1 monthly service fee that can’t be waived. The credit union’s other checking accounts also entail certain minimum balance requirements to waive monthly service fees.
Local Government Federal Credit Union Money Market Account
You might like the Local Government Federal Credit Union Money Market Account if your priority is to open an account with a low initial deposit of at least Local Government Federal Credit Union Money Market Account.
To earn interest and avoid a $2 monthly service fee, you’ll need to keep a minimum of $250 in your account daily.
Local Government Federal Credit Union Share Term Certificates
Local Government Federal Credit Union pays solid share certificate rates compared to other brick-and-mortar financial institutions, but the interest isn’t compounded.
It also lets you open an account with a minimum of Local Government Federal Credit Union Share Term Certificates. Typically, financial institutions require at least $1,000 to open this type of account.
How Local Government Federal Credit Union works
Local Government Federal Credit Union is a financial institution that serves North Carolina’s local government employees and volunteers.
The credit union doesn’t have branches, but it’s partnered with State Employees Credit Union. You may call Local Government Federal Credit Union customer support to open an account. Members will also be able to open and manage their credit union accounts through SECU’s branch and ATM networks.
SECU has 250 locations and 1,000 surcharge-free ATMs in over 100 cities throughout the state, with multiple branches in the following cities: Albemarle, Arden, Asheville, Benson, Boone, Burlington, Cary, Chapel Hill, Charlotte, Clayton, Concord, Durham, Elizabeth City, Fayetteville, Garner, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Hillsborough, Holly Springs, Jacksonville, Kernersville, Kinston, Lumberton, Morganton, New Bern, Raleigh, Roanoke Rapids, and Rocky Mount.
Customer service is available 24/7 by phone. You may also send a secure message through online banking.
The credit union’s mobile app is rated 4.8 out of 5 stars in the Google Play store and 4.9 out of 5 stars in the Apple store.
Local Government Federal Credit Union accounts are federally insured by the NCUA. Up to $250,000 is secure in individual bank accounts, and $500,000 is safe in joint bank accounts.
How to join Local Government Federal Credit Union
To become a member of Local Government Federal Credit Union, you must work or volunteer at North Carolina local government. If you work or volunteer at any of the following departments or organizations, you are eligible for membership at Local Government Federal Credit Union:
ABC Boards and storesAirport, housing, transit, water, or sewer authoritiesPlanning or economic development commissionCouncils of governmentSanitation, soil, and water conversation districtsLaw enforcement or fire departmentsHospitals on this listLibrariesLocal government associationsState county governmentState municipalitiesPark and recreations departments
You may also join the credit union if you are a family member or household member of someone who is eligible for membership.
The role of community development financial institutions
CDFIs serve low-income and disadvantaged communities. Banks and credit unions have to undergo certification by the US Department of Treasury’s Community Development Financial Institutions Fund and meet specific requirements to address banking barriers.
Local Government Federal Credit Union is partnered with NC State University’s Public Safety Leadership Initiative and the UNC School of Government, and offers scholarships for law enforcement officers and local government employees who want to pursue career training opportunities. The credit union also provides support to UNC School of Government’s Development Finance Initiative, which manages economic development projects in local communities.
Local Government Federal Credit Union trustworthiness and BBB rating
We use BBB ratings so you can see how a financial institution addresses customer issues.
The BBB gives Local Government Federal Credit Union a D- rating because it has failed to respond to four customer complaints on the BBB website.
BBB ratings aren’t necessarily the be-all and end-all and do not guarantee a smooth relationship with a financial institution. To see if a particular financial institution may be suitable for you, read online customer reviews and talk to current customers.
On the bright side, Local Government Federal Credit Union hasn’t been involved in any recent public scandals.
Local Government Federal Credit Union vs. Truliant Federal Credit Union
Truliant Federal Credit Union is a CDFI that serves local communities in North Carolina, South Carolina, and Virginia. To be eligible for membership at Truliant Federal Credit Union you must 1) live, work worship, or go to school in an eligible county in North Carolina, South Carolina, or Virginia; 2) work at a participating employer; or 3) live in North Carolina, South Carolina, Virginia, Georgia, or Tennessee and become a member of the American Consumer Council.
If you qualify for membership in both credit unions, choosing between these two credit unions might depend on what you’re looking for in a bank account.
Truliant Federal Credit Union may be a better choice if you want to open a free checking account. The checking account from Local Government Federal Credit Union has a $1 monthly service fee that can’t be waived.
For savings or money market accounts, it’ll be a toss-up between the two credit unions. Local Government Federal Credit Union offers higher interest rates, but Truliant Federal Credit Union doesn’t charge monthly services.
Local Government Federal Credit Union vs. Mechanics & Farmers Bank
Mechanic & Farmers Bank is a Black-owned financial institution and CDFI.
Credit unions require members to open accounts. At Local Government Federal Credit Union, you, a family member, or a household member must work or volunteer for North Carolina’s local government.
If you don’t meet these requirements, you will probably lean toward Mechanics & Farmers Bank.
You also might favor Mechanic & Farmers Bank if you’re searching for a rewards checking account. The Mechanics & Farmers Bank Dash Checking Account pays a higher interest rate than the Local Government Federal Credit Union Checking Account and offers up to $15 in out-of-network ATM fee reimbursements per month. To qualify for these rewards, you must make at least 15 debit card transactions that total $350, log into mobile or online banking, get online bank statements, and receive at least $500 in direct deposits.
You’ll likely prefer Local Government Federal Credit Union if you’re looking for a savings account or money market account with a solid interest rate. Local Government Federal Credit Union Share Savings and the Local Government Federal Credit Union Money Market Account have lower minimum opening deposits than Mechanics & Farmers Bank Statement Savings Account and Mechanics & Farmers Bank Money Market Account. It’s also easier to waive monthly service fees on Local Government Federal Credit Union’s savings accounts than Mechanics & Farmers options.
Frequently asked questions
What is Local Government Federal Credit Union?
Local Government Federal Credit Union is a financial institution that serves North Carolina local government employees and volunteers. It’s also certified as a community development financial institution by the US Department of Treasury’s Community Development Financial Institutions Fund.
Is Local Government Federal Credit Union federally insured by the NCUA?
Yes, Local Government Federal Credit Union is federally insured by the NCUA. Up to $250,000 is secure per depositor in an account.