JERSEY CITY, N.J.–Two national publications are out with their lists of what they say are the nation’s “best” credit unions, with separate CUs in Tennessee and Massachusetts taking top honors in the respective rankings.
Both Forbes and Kiplinger have released their rankings, which also include separate listings for the nation’s banks. In the case of Forbes’ rankings, national financial institutions with branches in at least 15 states were excluded from the final rankings, with Navy FCU the only credit union to meet that criterion.
Moreover, because those rankings are based on a random survey, it is likely many smaller CUs were overlooked because their respective members were not contacted.
“Smaller, community-based lenders are the most competitive when it comes to offering low rates on mortgages, consumer loans, and deposit accounts. But there is a massive divergence on how well banks are doing,” said Forbes.
To gauge which CUs/banks have the most satisfied members/customers, Forbes said it partnered with market research firm Statista to survey nearly 25,000 people in the U.S. about their banking relationships. The result is Forbes fourth annual ranking of the Best-In-State Banks and Credit Unions.
Twenty Questions
According to Forbes, consumers were asked 20 questions about their financial dealings. The banks and credit unions were rated on overall recommendations and satisfaction, as well as five subdimensions (trust, terms and conditions, branch services, digital services, and financial advice). Overall scores ranged from 77.38 to 95.63. Only 2.7% of all banks and 3.6% of all credit unions made our list.
In addition to Navy FCU, nearly a dozen nationwide banks were also omitted, including Bank of America, JPMorgan Chase Bank, PNC Financial, U.S. Bank, Truist Financial, and Wells Fargo.
Between one and five banks and up to 10 credit unions in each state were awarded the Best-In-State designation, based on the number of responses in each state. On average, each bank and credit union received 40 consumer surveys that polled users on everything from the ease of use of mobile banking services to the transparency of fees and interest rates and the hours and accessibility of bank branches, Forbes reported.
Overall, 135 unique banks and 190 unique credit unions qualified.
Citizens Financial Group and Huntington Bancshares were the best-performing banks across multiple states, winning five awards each. The top-scoring bank overall was First Bank Kansas, which received an overall ratio of 94.13.
‘Unheralded Lifeblood’
Calling credit unions the “unheralded lifeblood of the U.S. economy,” Forbes said the top-scoring CU in its survey was Tennessee Valley Federal Credit Union, based in Chattanooga, which scored 95.63.
The $2-billion TVFCU has more than 160,000 members and 19 branches.
In its rankings, Forbes said five CUs qualified as best-in-state in multiple locales. Those CUs include:
- Mountain America Credit Union, which finished in the top five in Arizona, Utah, and Idaho, where it ranked first. With $13 billion in assets and 990,000 members, it is one of the largest and fastest-growing credit unions in the country, covering customers in the American West and Rocky Mountain regions, Forbes said.
- America First Credit Union placed first in Nevada and second in Utah. Founded in 1939 in Salt Lake City, Forbes noted the $16-billion America First initially used a Prince Albert tobacco can to hold all of its cash deposits— then just $788.
- Community America Credit Union, DCU, Visions Federal Credit Union, and Security Service Federal Credit Union, founded in 1956 at Kelly Air Force Base in San Antonio, were other credit unions to receive multiple best-in-state credit union awards.
Other Top Scorers
Other top-scoring credit unions were small credit unions serving specialized communities, according to Forbes. Founded in 1953, Alamogordo, New Mexico-based Otero FCU is among the smallest in the country, with just 95 total employees. It ranked second overall according to the Forbes survey with a score of 93.65, ranking #1 in New Mexico.
Among the other Best-In-State credit unions with the highest overall ratings were Visions Federal Credit Union in New York, ELGA Credit Union in Michigan, CSE Federal Credit Union in Ohio, and Sikorsky Financial Credit Union in Connecticut, all of which received scores above 92.
The full Forbes report can be found here.
Kiplinger Names Its Top CUs
Meanwhile, Kiplinger, the personal finance resource and news company, has named its three “Best Credit Unions” in the country.
Gold Winner: Hanscom FCU, Hanscom AFB, Mass.
Named as its “Gold” winner was Hanscom Federal Credit Union in Massachusetts.
According to Kiplinger, Hansom FCU won because it offers “three free checking accounts with perks to suit a variety of preferences, and savers earn solid rates.
The publication specifically cited its Kasasa Cash Back Checking account, which provides 2% cash back on debit card purchases, and Kasasa Cash Checking yields 1% on balances of up to $15,000.
“With the CU Thrive savings account, get 2% interest for one year if you set up monthly transfers of $5 to $500 into it from a Hanscom checking account,” Kiplinger said.
Silver Winner: Bellco CU, Greenwood Village, Colo.
“Whether you’re looking for a checking account with basic features, high interest or premium perks, Bellco offers it,” Kiplinger said, citing Bellco’s free Boost Interest Checking, which yields 2.25% on balances of up to $25,000, and for kids, the Youth Savings account, which offers a 2% rate on balances of up to $500.
The publication also pointed to Bellco’s Platinum Checking account, which requires $15,000 in combined deposits and loans to waive a $12 monthly fee, which comes with free overdraft protection transfers, standard checks, wire transfers, money orders and cashier’s checks. It yields from 0.03% to 0.15%, depending on the balance.
“Free Checking is a good no-frills account, and the free Student Checking account is available for members age 13 to 24,” Kiplinger said.
Bronze Winner: Hiway Credit Union, St. Paul, Minn.
Kiplinger said it selected Hiway Credit Union because it offers a free checking account that offers an appealing interest rate, and CD rates are “pretty good.”
The credit union’s “standout accounts,” according to Kiplinger, include Hi Yield Checking, which offers 2.02% on balances of up to $25,000, while a five-year CD yields 0.95% on balances of $500 to $9,999, 1.05% on $10,000 to $24,999, or 1.15% on $25,000 or more.
Bank Winners
Kiplinger awarded its Gold Award to Chase Bank, its Silver Award to TD Bank, and its Bronze Award to PNC Bank.
For Internet banks, Kiplinger gave its Gold Award to Ally Bank, its Silver Award to TIAA Bank and its Bronze Award to Axos Bank.
The full report can be found here.