NEW YORK–Money has released its list of the Best Credit Unions of 2023-2024, with Virginia-based PenFed named as the nation’s best CU.
It should be noted, however, that Money’s “Best Credit Unions of 2023-24” rankings are based only on an analysis of 273 of the largest retail banks, credit unions, regional and state banks, ranked by assets, and 20 of the most popular online banks. Money said it compared opening balance requirements, interest paid, fees and features to determine top picks.
“Credit unions are the financial backbone of many communities,” the publication stated.
‘Financial Backbone’
“Their localized nature means they understand the needs of customers and, because members are part owners too, they can offer benefits that large national banks can’t. Low fees, higher interest rates on deposit accounts, low rates on loans and member perks are all reasons why a credit union could be a good option when you’re looking for a financial partner.”
The Top Picks
- PenFed Credit Union – Best overall
- Lake Michigan Credit Union – Best high-yield checking account
- Digital Federal Credit Union – Best high-yield savings account
- Mountain America Credit Union – Best high-yield money market account
- GreenState Credit Union – Best for rewards checking
- Security Service Federal Credit Union – Best Perks
- Alliant Credit Union – Best for membership fees
- Bethpage Federal Credit Union – Best for mobile banking
- First Technology Federal Credit Union – Best checking/savings combo
Combination of Factors
“PenFed is once again our top overall pick for best credit union because of its combination of low fees, large ATM network, easy opening balances and high interest rates paid on deposit accounts,” Money said. “Although PenFed has very few branches, it is part of the Co-op shared branch network. When you join you’ll also be able to earn up to 3% APY on a Premium Online Savings Account and up to 0.35% on an Access America Checking account. The credit union charges few fees, and the ones it does charge tend to be lower than other credit unions we considered. Anyone can become a member by opening a savings account with a $5 deposit, making it the easiest credit union to join.”
Added PenFed President and CEO James Schenck, “We are proud to be recognized by Money for providing our members with great rates and world-class service. In 2024, we look forward to continuing to help our nearly three million members achieve their financial dreams.”
The Top-Listed CUs
Here's what Money said about the other credit unions it rated highly:
Best High-Yield checking Account
“Lake Michigan Credit Union’s Max Checking Account pays 3% interest on balances up to $15,000, the highest standard APY paid by the credit unions we considered, making LMCU our pick for the best high-yield checking account,” Money said. “There are other benefits to banking with LMCU: Access to over 55,000 fee-free ATMs, low account fees and convenient online and mobile banking. Open a Max Savings Account, and you can earn between 0.10% and 2.25% APY, depending on the account balance.”
Best High-Yield Savings Account
“Our pick for the credit union offering the best high-yield savings account is Digital Federal Credit Union,” Money stated. “You can earn 3.56% on all balances with DFCU’s Advantage Savings Account, the highest of all the credit unions we looked at.
There’s no minimum balance to open the account once you’ve become a member. There are very few account fees and some nice perks. When you open DCFU’s Free Checking Account, you can get up to $300 in out-of-network ATM fees reimbursed per year.”
But it said there is one con, which is there is noATM card with the savings account.
Best High-Yield Money Market Account
“We picked Mountain America’s Money Market Account as the best for high yields,” Money stated. “It’s a tiered account with no minimum opening balance, no monthly service fee and pays an APY ranging from 0.5% up to 4.25%, depending on the balance.The credit union also pays a high APY of 5.5% on its Standard Certificate, one of the highest rates of all the financial institutions we evaluated. Best of all, there is no early withdrawal penalty if you need to use cash for an emergency.”
Best Rewards Checking
“GreenState’s Rewards Plus Checking account is our pick for the best rewards checking account. You can earn between 1% and 5% cash back on Platinum Rewards or World Mastercard purchases,” Money stated. “The account can be opened with as little as $50 and has no monthly service fee. It also pays 2% APY on balances up to $20,000 and 0.15% on higher balances as long as required account activity is met. GreenState is currently offering a promotional rate of 5% APY on the account for the first six months after opening.”
The con: Money said if requirements to earn higher APY aren't met, APY drops to 0.01%
Best Perks
“Security Service Federal Credit Union is our choice for best perks because of the large number of benefits offered by its Power Protected Checking Account,” according to Money. “There’s no minimum opening balance requirement and you can earn between 0.05% and 1% APY, depending on the account balance. In addition to earning interest, the account includes free mobile phone protection service, zero co-pay telehealth, discounts at stores and airlines, and up to $1 million in identity theft expense reimbursement.”
The con: monthly $9 service fee can't be waived, according to Money.
Best Membership Fees
“Alliant Credit Union is our pick for the best membership fees. Anyone who doesn’t meet the residency requirements to become a member can join by making a $5 donation to Foster Care 2 Success — and Alliant will cover that fee for you,” Money said. “You won’t pay a ton of account fees at Alliant, either. There is no monthly service fee, free overdraft protection and no insufficient funds fee. Open a High Rate Checking Account and get your first box of checks at no charge while earning 0.25% APY. Plus, you get up to $20 in ATM fee rebates per month.”
The con: Money said ATM only available on checking account
Best Mobile App
“Bethpage’s mobile app received the highest customer ranking on both Google Play and Apple, making it our top pick for the best mobile banking app. Plus, just about anyone can join the credit union by opening a savings account with $5,” according to Money. “Customers mentioned how easy it is to use the app and the large number of account management tools available as the main factors in the app high marks. A standout account is Bethpage’s Free Checking account, which pays 0.4% APY when account activity requirements are met. You’ll also have access to 30,000+ ATMs nationwide.”
The con: limited number of Bethpage branches, Money said.
Best Checking/Savings Combo
“We chose First Technology for best checking/savings combo because of the high interest rates paid on its Rewards accounts and the included perks when account activity requirements are met,” Money explained. “You can earn 4% on balances up to $15,000 with the First Tech Rewards checking account and another 4% on balances up to $24,999.99 on the First Tech Rewards Savings Account. The APY drops to 0.10% on both accounts on higher balances.
“Both require a minimal opening balance and have no monthly service fees. Additional perks include up to 0.5% cash back on credit card purchases (up to $15 per month on spending and $10 a month on streaming services), 0.25% cash back on loans and home equity line of credit (HELOC) payments (up to $15 per month),” Money added.
The cons:APY on higher balances is low, according to Money.
As Winter Approaches, the Price for the Best Daily News Update in Credit Remains a Nice, Cozy Free!
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?