More than one in four U.S. consumers have taken their savings to one of the country's 9,600 federally-insured credit unions. With the Federal Reserve's low interest rates hammering the yields you're getting on your bank savings accounts and CDs, now's a good time to check out these popular financial organizations.

Credit unions are to banks what generic drugs are to name brand prescriptions -- excellent substitutes that typically give you good value for your money and are just as safe. These not-for-profit consumer organizations were started after the Depression to help those who were being turned away by the financially fragile banking system. The idea was to provide higher savings rates and lower loan rates than for-profit institutions. Here's a brief rundown of their strengths and weaknesses to help you assess whether they're a good place for you to stash your contingency fund savings.

• Service. Much as with banks, the range of services offered by a credit union largely depends on its size. Areas where they might cut corners include the availability of automated teller machines and the number of branches. On the plus side, many credit unions offer discounts on automobile and life insurance. A survey reported by Consumer Reports indicated that members of credit unions were, on average, twice as likely to voice satisfaction with the service they received as were customers of commercial banks. Perhaps that's why total deposits in credit unions now exceed $500 billion.

• Safety. Most credit unions are protected by a federal agency that insures their deposits just like the FDIC does for banks. (Don't settle for state-sponsored or private deposit insurance ? some have had problems in the past.) However, the rules governing which kinds of accounts are insured and for how much can be confusing. To be absolutely sure you're fully covered, request the booklet Your Insured Funds from your credit union. Have an officer go through it with you and explain which sections apply to your account. The booklet is also available from the National Credit Union Administration at their website or by calling 703-518-6300.

• Rates. The good news is that surveys have routinely indicated that credit unions pay better savings rates than banks (about 0.75%-1.25% more per year according to BankRate.com). Pay attention to the details, however. There are two possibly offsetting drawbacks: (1) The surveys reflect national averages, but the credit union you are eligible to join may be "below average." Make sure yours measures up. (2) Some credit unions do not pay interest based on your average monthly balance but rather on your lowest monthly balance. Such a policy discourages you from drawing on your savings.

• Eligibility. Most credit unions are sponsored by employers or trade and community associations, and they limit membership to employees or those with geographical proximity. However, a growing number cater to the investing public at large, so it's worth calling the Credit Union National Association (800-358-5710) to see if there is one in your area (or visit their website for this and other helpful information on credit unions). With savings rates at historically low levels, credit unions are one way to boost your returns.

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