NEW YORK–Credit unions were named as the “top bank” in 15 of 50 states—plus the District of Columbia—as part of the just released MONEY’s “Best Banks in America” list.
To identify what it said is the best financial institution in each state, MONEY said it evaluated the 90 largest brick-and-mortar banks, 50 credit unions, and 15 online banks, as identified by bank consultancy firm Novantas. Two credit unions were named as the Best FI in two different states.
MONEY said it also partnered with Bankrate.com to collect data on fees, interest rates, and account requirements for checking and savings accounts. Using Bankrate's data, MONEY said it compared more than 800 accounts and 18,000 data points during July and August, and then it independently fact-checked information for each winner in September and early October.
In selecting the best FI winners by state, MONEY said it excluded checking accounts that required a minimum balance greater than $1,500 to either open the account or waive monthly fees. Priority was given to FIs whose checking accounts had no (or easily waived) monthly fees and low or no ATM fees. MONEY further said it also sought higher interest rates for checking and savings accounts. Additional factors included J.D. Power customer service ratings, when available, from the 2017 U.S. Retail Banking Satisfaction Study, geographic reach within a state, recent enforcement actions, and mobile app ratings in the iTunes Google Play stores were also factored in.
For the full article, including the reasons banks were selected as the best overall FI in various states, go here.
What does it all mean to consumers? In addition to savings on loan rates or earnings on deposit rates, MONEY also said it estimates that a FI with no maintenance fees or ATM fees could save a consumer $142 a year, vs. typical account fees.
Here’s a look at the states in which credit unions were named the “best” FI for consumers. All of the text accompanying the winners if from MONEY’s analysis.
Alabama
Redstone Federal Credit Union
Why It Wins: Redstone's fees are below average across the board, and its Share Savings Account pays an interest rate three times as high as the next highest rate on savings accounts available in the state.
Caveat: There is a $1 out-of-network ATM fee. To avoid that, use a Co-Op network, Presto, or Allpoint ATM, which together have more than 900 locations in the state.
Alaska
Alaska USA Federal Credit Union
Why It Wins: Broad membership rules and no ATM fees pushed Alaska USA far ahead of other big banks here.
Caveat: There are $5 fees on both basic checking and savings accounts, but both are easily waived.
Eligibility: All state residents
Key Terms
Convenience Checking: Monthly fee: $5, waived with recurring direct deposits
Outside ATM fee: $0
California
First Tech FCU (in a tie with OneWest Bank)
Why It Wins: “First Tech's bank account terms are among the most impressive,” MONEY said. Its rewards checking account, for example, pays 1.58% interest and gives you free out-of-network ATM use. To qualify, you need one direct deposit and 12 debit card purchases per month.
Caveat: There are only six branches, largely in Northern California. The credit union is part of the CO-OP branch network, but count on those only for routine needs, such as deposits or money orders.
Eligibility: Work for one of 775-plus tech companies or join the Financial Fitness Association for $8 a year.
Key Terms
Dividend Rewards Checking. Monthly fee: $0
District of Columbia
Alliant Credit Union (headquartered in Chicago)
Why It Wins: The interest on Alliant's High Rate Checking account puts even most savings accounts to shame. And its 1.16% savings account rate is one of the highest among all the banks MONEY evaluated. Plus, the credit union reimburses $20 a month in outside ATM operators' surcharges.
Caveat: There's only one branch in the District, and just a dozen nationwide.
Eligibility: Donate at least $10 to Foster Care for Success or work for one of 250 partner companies.
Key Terms
High Rate Checking: Monthly fee: $0
Outside ATM fee: $0
Interest: 0.65% if you receive e-statements and one electronic deposit (including direct, ATM, or mobile deposits) a month.
Florida
Suncoast Credit Union
Why It Wins: Suncoast pays a bit of interest on checking, and its ATM fee is easily avoided: Between the CO-OP network and Presto machines in Publix grocery stores, you have in-network access to more than 3,000 free ATMs in Florida.
Caveat: Live outside Suncoast's coverage area? Space Coast Credit Union, on Florida's east coast, is a solid choice, and Fifth Third Bank, with 150 branches statewide, is the J.D. Power customer satisfaction winner for the state.
Eligibility: Live, work, attend school, or worship in one of 21 counties in southwestern Florida.
Key Terms: Smart Checking
Monthly fee: $0
Outside ATM fee: $1.50
Interest: 0.05%
Iowa
University of Iowa Community Credit Union
Why It Wins: There's no monthly fee on this credit union's basic account, and you can easily avoid the outside ATM fee: All accounts have access to more than 200 ATMs in Iowa through the Allpoint network, and if you live outside Johnson County, you can get seven free out-of-network ATM transactions per month. The 0.1% interest rate on basic savings topped the other banks MONEY evaluated in Iowa.
Caveat: The savings account allows just three free withdrawals per month; after that, you'll pay $1.
Eligibility: All Iowa residents
Key Terms: Free Checking: Monthly fee: $0 with e-statements
Outside ATM fee: $1.75
Massachusetts
Digital Federal Credit Union (DCU)
Why It Wins: ATM fees are low, and if you meet its requirements—including getting a credit card and setting up direct deposit—fees are waived altogether. The capper: 5.12% interest on the first $1,000 in a savings account, paying you more than $50 a year.
Caveat: Branches are limited. If you live in the Boston or Cape Cod area, Rockland State & Trust has accounts that are also impressive.
Eligibility: Residents of Chelmsford, Lowell, Tewksbury, and Worcester; employees of over 700 local companies; and members of eight organizations—including one with low $10 dues.
Key Terms: Primary Savings: Monthly fee: $0
Interest: 5.12% on the first $1,000, then 0.05%
Michigan
Lake Michigan Credit Union
Why It Wins: This state offered a few strong options. Lake Michigan clinched it with remarkably high interest on its checking account and $15 a month in free ATM charges, if you meet its requirements (see below)—plus low ATM fees.
Caveat: If you don't set up direct deposit, make 10 debit card purchases a month, and use online banking, the checking account pays no interest—and you lose the $15 in ATM credits.
Eligibility: Any resident of the Lower Peninsula, among other options.
Key Terms: Max Checking: Monthly fee: $0
Outside ATM fee: $1
Interest: 3%
Minnesota
Wings Financial Credit Union
Why It Wins: Wings was the only FI MONEY considered in Minnesota to offer a checking account with no monthly fee and several free out-of-network ATM transactions. It also pays a bit of interest.
Caveat: There are few branches outside the Minneapolis/St. Paul area.
Eligibility: Residents of 13 counties around Minneapolis/St. Paul, aviation workers or retirees, or via a $5 gift to the Wings Financial Foundation, among other options.
Key Terms: First Class Checking: Monthly fee: $0
Outside ATM fee: $2
Interest: 0.05%
New Hampshire
Digital Federal Credit Union (DCU) (tie with TD Bank)
Why It Wins: Sign up for direct deposit, e-statements, and a DCU credit card or loan, and you get a checking account with no monthly fee, no out-of-network ATM fees, and a $15 monthly rebate of other ATM operators' surcharges—plus generous interest on modest savings. Customers have access to the CO-OP network, with over 60 shared branches and 170 ATMs in the state.
Caveat: Without the CO-OP locations, DCU has only a few branches here.
Eligibility: Employees of over 150 local companies, and members of eight organizations—including one with a low $10 annual fee.
Key Terms: Primary Savings: Monthly fee: $0
Interest: 5.12% on the first $1,000, then 0.05% on remaining balance
New York
Bethpage Federal Credit Union
Why It Wins: It's rare to find a fee-free checking account paying 1% interest. To earn that rate, you need to get e-statements, set up direct deposit, and make 10 monthly purchases on your debit card. (Even if you don't hit those marks, the account is still free.)
Caveat: Branches are limited to New York City and Long Island. If you don't want to rely on the 215 shared CO-OP branches and you live elsewhere in New York, check out Northwest Bank or NBT Bank.
Eligibility: Anyone can join by opening a savings account with $5.
Key Terms: Bonus Checking: Monthly fee: $0
Outside ATM fee: $0
Interest: 1% if you meet the requirements
Ohio
Wright-Patt Credit Union
Why It Wins: Wright-Patt tops Ohio rivals by offering a checking account with no monthly fee and a few free out-of-network ATM transactions a month; you also get access to about 340 Co-Op branches. Another plus: MagnifyMoney's 2017 Mobile Banking App Study ranked Wright-Patt's app in the top 10 nationally.
Caveat: Eligibility is limited, and most of Wright-Patt's branches are near Columbus and Dayton. If you live elsewhere in the state, check out Huntington, which also offers free checking and has over 500 branches throughout Ohio—and is a J.D. Power customer service winner.
Eligibility: Those who live, work, worship, or attend school in most areas of Dayton, Columbus, and Cincinnati; current or former Wright State University employees and students; and military personnel, among other options.
Key Terms: Totally Fair Checking: Monthly fee: $0
Outside ATM fee: at least two free, then 60 cents
Oklahoma
Tinker Federal Credit Union
Why It Wins: Tinker offers a checking account with no monthly or out-of-network ATM fees, as well as a savings account that pays 0.25% interest—higher than many in-state rivals.
Caveat: The whopping 1.49% rate on Click Checking has a few restrictions: You'll need to make 10 debit card purchases, pay at least one bill online, log in monthly, and get e-statements and a monthly direct deposit. Eligibility is also somewhat limited.
Eligibility: Residents of three Oklahoma counties plus the Oklahoma City Empowerment Zone, and military personnel, among other options.
Key Terms: Click Checking: Monthly fee: $0
Outside ATM fee: $0
Interest: 1.49% on up to $30,000, if requirements met
Oregon
First Tech Federal Credit Union
Why It Wins: First Tech's signature account, Dividend Rewards Checking, pays 1.58%—the highest of any bank in Oregon that MONEY analyzed. Via the Co-Op network, you can bank at over 80 additional affiliates in Oregon, plus another 650 ATMs.
Caveat: Dividend Rewards has several restrictions. If you're not a debit card user, opt for the no-fee Checking Plus account.
Eligibility: Employees of over 775 private companies and the state government, plus Lane County residents. Or join a participating nonprofit like the Financial Fitness Association ($8 a year).
Key Terms: Dividend Rewards Checking: Monthly fee: $0
Outside ATM fee: $0
Interest: 1.58% if requirements met
Utah
America First Federal Credit Union
Why It Wins: America First has a checking account that pays some interest with no monthly fees—and its Share Savings pays 0.1% interest on even minimal balances.
Caveat: The CO-OP network will give you access to over 500 free ATMs in Utah—but if you stray, you'll pay an outside ATM fee.
Eligibility: Residents of or workers in five Utah counties, plus workers in Utah's food industry and employees of partner organizations.
Key Terms: Free Checking: Monthly fee: $0
Outside ATM fee: $1.50
Interest: 0.05%
Washington
Boeing Employees Credit Union
Why It Wins: BECU lets you avoid monthly and out-of-network fees on checking and savings, while paying incredible interest rates. On its Member Advantage Checking, you earn a whopping 4% on up to $500.
Caveat: BECU's locations are centered around Seattle. Elsewhere, consider Washington Federal, a multistate winner with over 82 branches here.
Branches: 46
Eligibility: Anyone who lives, works, worships, or attends school in Washington.
Key Terms
Member Advantage Savings
Monthly fee: $0
Interest: 6% on up to $500, then 0.05%