NEW YORK–Kiplinger’s has published its rankings of America’s best banks and credit unions, naming its top two in each category.
It has also named what it says are the best providers according to other criteria a consumer may have.
Kiplingers named Hanscom FCU in Massachusetts and Connexus Credit Union in Wisconsin as its top two credit unions. It should be noted that criteria for making the list included an FOM that included an open national membership.
“We found banks and credit unions that still aim to do right by their customers,” Kiplinger’s said in announcing its list. “We concentrated mostly on how well the banks deliver low fees and balance minimum investments and high rates. Banks that minimize penalties for customers who overdraw their accounts, for example, got extra credit. But we also took note of other useful features.”
Features That Were Included in Criteria
Among those other features are the availability of free identity-theft monitoring services, mobile apps and even access to virtual assistants such as Alexa.
To arrive at its conclusions, the company worked with Informa Research Services, which provided data on deposit accounts from several dozen institutions.
Here’s why Kiplinger’s said it chose its top two credit unions and banks:
Credit Unions
#1 Credit Union: Hanscom FCU, Hanscom AFB, Massachusetts
“Although most of its 21 branches are clustered in and around Boston, Hanscom has more than 5,000 ‘shared branches’ across the country at which you can deposit checks, transfer money and more,” wrote Kiplingers, noting there is also access to 100,000 surcharge-free ATMs and the option to get up to $20 annually in ATM fee rebates.
“Three of its four checking accounts are fee-free. The basic account lets you earn ‘MemberPoints’ on purchases that you can redeem for travel, merchandise or gift cards, while Premier Checking ($9.95 per month unless your average daily balance exceeds $2,000) ladles on an extra 250 points each month and yields 0.3%,” said Kiplingers. “You can also choose among several savings accounts, such as CU Thrive, which rewards customers who set up automatic monthly transfers (capped at $500 per month and for a one-year term)with a 3% rate. The money market account earns up to 1% and requires an initial $2,000 deposit. CDs require either a $250 investment to earn a flat 0.85% on three-, six- or 12-month terms, or a $1,000 investment to earn, say, 1.25% on one-year and 2.25% on five-year terms.”
Kiplinger’s said membership is open to those who work for or are retired from the federal government in Massachusetts and other employers, or someone can become a Hanscom member by joining one of three partner organizations, including the Burlington Players ($12), a volunteer theater group.
#2 Credit Union, Connexus Credit Union, Waussau, Wis.
Membership in Connexus is open to employees of a number of companies as well residents of certain parts of Minnesota, Ohio and Wisconsin, while anyone else can join by donating $5 to the Connexus Association, which provides scholarships and supports education, noted Kiplinger’s.
In its analysis Kiplinger’s said Connexus’ checking accounts don't require an initial minimum deposit.
“The no-frills Innovative account doesn't pay interest; the MyRewards account pays 1.35% and Xtraordinary Checking pays 1.75% on up to $25,000 in deposits, provided you meet certain requirements each month,” wrote Kiplinger’s. “For Xtraordinary, this means 15 debit card transactions, one direct deposit and one bill payment, plus electing to receive electronic instead of paper statements; the MyRewards rules are a bit more relaxed. Falling short in either account means your rate will drop to 0.2%. The three savings accounts (regular, youth and holiday-oriented) all earn 0.25% as long as you keep a minimum daily balance of $100 or more.”
Kiplinger’s added in its report that Connexus also offers no-surcharge ATM Access through CO-OP Network and MoneyPass and allows at least four free out-of-network ATM transactions per month (interest-checking customers can also receive up to $25 in rebates for out-of-network ATM charges).
“You can send money free to anyone through Connexus's peer-to-peer payment system,” Kiplinger’s said.
Best Banks
Kiplinger’s named TD Bank and U.S. Bank as the best banks in the United States. TD Bank, which is based in Canada but which has more than 1,200 branches in 15 East Coast states, was recognized for its offerings, big and small. For instance, there are free pens and lollipops for humans and free biscuits for their dogs. The bank’s branches are also open for extended hours, often seven days a week and also on many federal holidays.
Kiplinger’s also had praise for its Convenience Checking product, which requires a minimum daily balance of only $100 to waive the $15 monthly fee.
U.S. Bank was recognized for its 3,000 branches across 25 states as well as strong digital offerings and “excellence in person-to-person payments and online bill paying.”
Moreover, “For four years in a row, the Ethisphere Institute has named U.S. Bank one of the world's most ethical companies.”
U.S. Bank’s products also received praise, including its Silver package, which comes with a free money market deposit account and requires $1,000 in monthly direct deposits or a $1,500 minimum balance in your checking and money market account to waive the $6.95 monthly fee. In addition, it offer a Gold checking package, which waives the $14.95 monthly fee if you have a mortgage, home-equity loan or line of credit, credit card, or personal loan with U.S. Bank.
More on the Kiplinger’s ranking can be found here.