State Department Federal Credit Union

I’ve been a member for three years, and always make my deposits from their mobile app. I’ve just discovered that they have now imposed a limit on the amount you can deposit each day through your phone. Today I had a deposit that exceeded this limit, causing all sorts of problems. I had to drive 8 miles to find a related ATM. I fully expect to have holds placed on large deposits. That goes without saying. However, this is the first time I had a bank deny a deposit because it was too big?!? On top of that, there was no notification, as this policy was put in place August 31. I guess they don;t want the money. Maybe time to look for another bank.

Denied loan, other credit union approved. I had about 3k in cash in checking and savings at SDFCU. I had previously made a money transfer of 15k about 1 month before. I applied for a personal loan here, and at Arlington Community Federal Credit Union. I wanted to get the best rate. I got 3 different loan offers from ACFCU, even though I had went through a foreclosure 2 years ago. THey asked me about the circumstances surrounding the foreclosure, looked at my current income, and saw that other than the house, I was not late, had a low debt/​credit ratio, and have a great income. State Department denied me, offered no alternatives, and when I called to ask them, they just said work a few more years and wait. No specifics, just try again in a year or 2. So, I dont like banks that take my money to hold, but dont offer loans. Especially compared to others. If you have a blemish on your record, dont go here. Thats a lot of people, so dont waste your time.

I’ve been a member for many years. Never been to a branch because… who actually needs to *go* to a bank anymore? Personally, I do not. Also, SDFCU has great service via phone, online, and mail, since they are used to serving customers overseas. If you travel internationally, their credit card has better foreign transaction fees than many others (maybe all others, but I don’t know about any except my BofA Visa). I have been very very pleased with being their customer.

Mikkela T.‘s review might have been accurate in 1972 when I joined SDFCU but it’s scarcely a useful appraisal today. In the 1970s, SDFCU had just a handful of branches, and if you needed to visit its main office in the State Dept basement and didn’t have a State ID you’d have to phone for an escort. Today the main office is in Alexandria VA and SDFCU has absorbed a number of other area credit unions (it has 5 branches in the DC/​Virginia area) and expanded its offerings. Perhaps it still doesn’t sell foreign currency but official travelers are almost always met on arrival abroad and can change money at Embassy cashiers. Or, like the rest of humanity, get local currency from an airport ATM. The field of membership is huge:
Not everybody will find a credit union sophisticated enough for his or her needs. It seems to me that the major competitor for the typical SDFCU member’s business would be USAA Federal Savings Bank, which is likewise geared to dealing with customers by mail, diplomatic pouch and online — and has an even more sophisticated «instant crediting» system for depositing checks (you can send an iPhone image; with SDFCU you have to mail in the check after getting instant credit for it).
SDFCU benefits mainly from the low moral risk of its customers (generally true of USAA as well because of its military-​officer origins and focus, although today anybody can use its bank and today its field of membership includes enlisted personnel). That hasn’t saved either institution from bankruptcies among its customer base, but while the Hedge Fund Implode-​O-​Meter shows some credit unions and lots of banks going bust, I don’t think either of these is at risk:

The age of electronic banking has changed SDFCU as much as any bank: it used to be that liaison officers at US embassies could provide forms and members could use free State telegram facilities to arrange loans and transfer money. Today this can all be done online; ATMs provide cash; and with Skype one can ring SDFCU’s 800 number from anywhere for free. With banks now looking to increase their fees and rates to compensate for forced reductions in overdraft charges and credit card fees I suspect that there will again be a bright future for affinity institutions like SDFCU that enjoy implicit subsidies from the employers of their members and from the US Government and taxpayer.

Down in the dungeon that is Foggy Bottom, in the bowels of the State Department, is… this credit union… it’s only for those who have building badges… the lines are long… BUT, they get one star for the free coin machine! Despite the traveling nature of their customers, they do not change money into foreign currencies. Wow.