Service Credit Union Review: Pros And Cons

Service Credit Union is a full-service credit union that primarily serves active military members and their famikies, current and former Department of Defense employees, and those who work for select employer groups.

The credit union offers a full range of banking products, including checking and savings accounts, share certificates, credit cards, loans, mortgages (including VA loans), and more. Our review focuses on Service Credit Union's personal deposit products as we let you know how they compare to other military financial institutions, like USAA and Navy Federal Credit Union. 

What Is Service Credit Union?

New Hampshire-based Service Credit Union opened its doors in 1957 to serve military members and their families stationed at Pease Air Guard National Base in Portsmouth. It has grown to include over 50 branches in New Hampshire, Massachusetts, North Dakota, and Germany. 

What Does It Offer?

Service Credit Union offers a full range of financial products and services for individuals and businesses. For the purpose of this review, we're focusing primarily on its personal deposit products (checking, savings, share certificates.) 

Checking Accounts

Service Credit Union offers an Everyday Checking Account, which has three levels: Basic, Everyday Checking with Direct Deposit, and Direct Deposit+. Through regular activity and by setting up additional services, such as payroll direct deposit, you unlock additional features offered with the latter two tiers. There are no monthly maintenance fees charged on Everyday checking accounts. 

The Everyday Checking includes the following features: 

• Rewards on debit card purchases 
• Mobile bill pay and remote check deposit 
• Early direct deposit (get paid up to two days early) 
• Up to 0.75% loan discounts on select loans 
• Up to $30/month in ATM surcharge and foreign transaction fee rebates

You can also open a Dividend Checking Account, which unlocks 0.15% APY in dividends on the entire balance. However, you must maintain a $1,500 minimum daily balance to avoid the $10 monthly fee. 

Savings Accounts

Service Credit Union offers several different savings accounts, including its Primary Savings, Youth Accounts, Military Savings Accounts, Holiday Club, Money Market, and Trust accounts. 

The Primary Savings Account is mandatory if you want to become a credit union member. It includes a small, $5 minimum deposit, and you will earn 5.00% APY on the first $500 and 0.25% APY on balances over $500. This is a great option for anyone who wants to earn an attractive rate on smaller savings balances. 

Credit union members who are currently serving active duty in a combat zone may qualify for a savings rate of 10% APY on balances up to $10,000 in a Deployed Warrior Savings Account. Service Credit Union recommends that you contact them directly to find out if you qualify. 

Share Certificates

Share certificates are the credit union version of certificates of deposit (CDs). These are savings accounts that require you to lock-in your funds for a predetermined period in exchange for a guaranteed rate of return. Because of this lock-in period, certificates tend to offer higher returns than most savings accounts, with the same principal guarantee. 

Service Credit Union offers share certificates with the following terms and APYs: 

*APYs are current as of September 25, 2024 and are subject to change. 

Money Market Accounts

If you're looking for a higher return on your savings, but you don't want to lock your funds into a share certificate, you might want to consider a Service Credit Union Money Market Account. Money market accounts are similar to savings accounts, but it offers a tiered interest rate. In other words, the more money you deposit, the higher your return. And you don't need to set up a direct deposit to qualify for the better rates. 

Service Credit Union's Money Market account has the following tiers: 

This account is really only worthwhile if you have over $2,500, as you won't earn any interest below that amount and you'll be subject to a $5 monthly fee. Also, if you know you won't need to touch your money for at least six months, you're better off purchasing a 6-month share certificate, which is currently paying a much higher APY of 4.90%. 

Are There Any Fees?

Service Credit Union doesn't charge any monthly maintenance fees on its Everyday Checking and Primary Savings accounts. There are also no monthly fees on share certificates. However, you will pay a $10 monthly fee on the Dividend Checking if you cannot meet the $1,500 minimum daily balance requirement, and $5 per month on a money market account if you fail to maintain $2,500 in the account. 

Of course, you will be subject to various fees and other charges on other Service Credit Union accounts, as they also offer credit cards, loans, mortgages, and small business banking products. 

How Does Service Credit Union Compare?

When it comes to day-to-day banking products, Service Credit Union is competitive with similar financial institutions. For example, it offers slightly better savings rates than Navy Federal Credit Union, which is the nation's largest retail credit union. Certificate rates are similar, although Navy Federal is currently offering 5.30% APY on its 12-month Special EasyStart Certificate. 

And Service Credit Union's savings rates are better than another financial institution serving military members, USAA. On most tiered balances, it offers a meagre 0.01% APY, and you need over $500,000 to earn 1.50%. While competitive, its certificate APYs are also a bit lower than Service Credit Union. 

How Do I Open An Account?

To open an account with Service Credit Union, you must belong to one of the following groups: 

• Active military member, veteran, or family member 
• Current or former Department of Defense employee or family member. 
• Work for a Select Employer Group (check this list for eligibility)
• Be a member of the Financial Fitness Association (FFA) 
• Be a member of the American Consumer Council (ACC) 

The first account all members must open is a Primary Savings Account. From there, you can open a checking account, share certificate or other account. To begin, select "Get Started" from the Service Credit Union website homepage, then "Open An Account". 

You'll be required to provide the necessary identification, your Social Security Number, and your account information for the initial deposit. There are four steps in the online application process: Account selection, Personal Information, Agreements, and Funding. Once you've successfully completed all four steps, your new account will be ready to go. 

Is It Safe And Secure?

Yes, Service Credit Union has been around for many decades and is a well-established and respected financial institution. For its online banking services, including mobile banking, it employs the same levels of security protection that you would expect with any reputable financial institution. Also, Service Credit Union is a member of the National Credit Union Administration (NCUA), which insures your eligible deposits up to $250,000. 

How Do I Contact Service Credit Union? 

For assistance with daily banking, you can contact Service Credit Union at the following numbers: 

• (800)-936-7730 (U.S. Nationwide)
• 00800-4728-2000 (International)

You can also access live chat support through its website or via text at (877)-849-4559. If you live close to a Service Credit Union location (most are located in New Hampshire and Germany), you can visit a branch in person. 

Is It Worth It?

If you're eligible for membership with Service Credit Union and live close to a branch, you may be able to benefit from its free checking account, attractive certificate yields, and various other products and services. Even if you have a small savings balance, you'll appreciate the 5.00% APY on balances up to $500. However, better CDs and high-yield savings account rates can be found with many online banks, so if you have no particular affinity to Service Credit Union, you're better off looking elsewhere. 

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Service Credit Union Features