Credit unions could be an alternative to banks for Americans in Germany — The Local Germany
Americans living in Germany may consider international credit unions as an alternative to conventional banks for access to US accounts, savings, credit cards and investment services. This was reported by The Local Germany. The publication notes that foreign banks are increasingly refusing to serve US clients because of the requirements of the US FATCA law and changes in EU legislation.
Fintech services such as Wise and Revolut allow users to hold funds in US dollars and obtain US banking details for basic transactions. However, Americans abroad often need a traditional financial institution for investments, loans or credit cards. Maintaining an account with a US bank can be difficult, as many institutions require a US mailing address and phone number.
Credit unions with broader access
State Department Credit Union, or SDFCU, was originally established for US State Department employees and contractors, as well as their relatives. It can now be joined by a much wider range of people, including through the partner organization American Consumer Council. Membership costs $15. SDFCU offers banking, investment and IRA retirement accounts; a balance of more than $2,000 in a checking account earns a 0.75% annual dividend, which increases as the balance grows.
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Service Credit Union has more than a dozen branches on US military bases in Germany. It serves military personnel, US Department of Defense employees and their families, but also accepts members of the American Consumer Council. Some checking accounts offer 0.15% annually on balances starting at $1,500; if the balance is lower, a monthly fee of $10 is charged. Its high-yield savings account offers 5% annually on the first $500.
Digital and specialized services
Alliant Federal Credit Union operates entirely online and is open to everyone. It offers checking and savings accounts, credit cards, trusts and IRAs. Savings starting from the first $100 earn 3.01% annually, while amounts above $100,000 earn 3.35%.
United Nations Federal Credit Union limits membership to UN employees and contractors, as well as those of partner international organizations. The credit union offers financing for home purchases outside the United States without collateral: the maximum term for such loans is 15 years, and the rate starts at 9.75% annually. Navy Federal Credit Union accepts US Department of Defense employees, active-duty and retired military personnel, and their family members. Its dividend-bearing checking account offers between 0.35% and 0.45% annually, depending on the balance amount.
