Credit Unions Edge Out Banks in Satisfaction; Latest JD Power Report Finds

By W.B. King

Among areas credit unions excelled at in the JD Power 2026 U.S. Credit Union Satisfaction Study were low fees, personalized service and “great” interest rates. Overall satisfaction this year with U.S. credit unions is 725 (on a 1,000-point scale). While that score is 68 points higher than the overall satisfaction score for U.S. retail banks (657), it represents a four-point decline from last year, noted Dann Allen, senior director, customer solutions at JD Power. The trend, he added, also coincides with an increase in the number of credit union members opening accounts with other financial institutions over the same period.

“Relative to other financial services providers, credit unions continue to deliver strong levels of overall member satisfaction, but the combination of rising levels of account attrition and a declining trend in member satisfaction should be taken seriously by credit union leaders,” said Allen.

The study is based on responses from 10,386 credit union members from the 29 largest credit unions, which are defined as those with at least $7.5 billion in domestic deposits. It was fielded from January 2025 through January 2026. The credit unions were surveyed across seven dimensions (in order of importance): trust, people, allowing members to bank how and when they want; account offerings, saving time and money, digital channels, and resolving problems or complaints.

The $35 billion, Tustin Calif.-based SchoolsFirst Federal Credit Union, which supports more than 1.5 million members, ranked highest in credit union member satisfaction for the second consecutive year, with a score of 792.

Dann Allen

“Receiving this recognition from JD Power for a second year in a row is an incredible honor,” Bill Cheney, CEO of SchoolsFirst FCU, said in a statement. “While awards are meaningful, we’re even prouder of the trust our members place in us every day for their most important financial goals, seeking our guidance in challenging times and allowing us the privilege of supporting their financial well-being.”

Products and Services Are Turning Members’ Heads

While Allen noted that the report is a net positive for all credit unions, he told Finopotamus that “some cracks” are being realized in the space, especially members considering services from other financial institutions.

“The top reasons why members are moving is more tied to products/services offered and convenience. Digital was not a top reason and only mentioned by less than five percent of members,” Allen shared. “Within the top four reasons for placing their money elsewhere, three reasons are shared between age groups (those under 40 and those age 40-plus)—to cover a bill or other payment need, better interest rates (deposits or lending), and a better savings program. The under 40s are also moving money for better cash back or reward programs. For those age 40-plus, they are also moving money to be near an institution that has more convenient branches and ATMs.”

Earning Confidence Repeatedly

This year marks the third annual installment of the report. When Finopotamus asked Allen what satisfaction trends have become conventional wisdom, he replied that for the last three years, credit unions have outperformed banks on satisfaction in the areas of loyalty and trust, but are no longer immune to decline. 

“While there is structural strength, especially from a membership model, that does not guarantee growth and leaders must operate assuming erosion risk. We see younger members spreading deposits elsewhere, while older members spread lending/investment relationships,” he continued. “Fee friction is chronic and understanding is deteriorating, not improving. Fee education can no longer be a ‘nice to have,’ it needs to be table stakes as it’s a primary driver of dissatisfaction, defection, and financial stress. Younger members are less forgiving. They use more channels, need more help, and punish friction faster.”

To ensure the credit union “people helping people” movement continues to thrive, regardless of assets class, Allen said credit union leaders must engage in constant reassessment, not focus on long-term loyalty.  The advantage, he added, comes from earning confidence repeatedly.

“They must treat routine experiences as reputation builders to reinforce clarity and confidence,” he continued. “These leaders must close the gap between what members feel and what they do – robust data analytics is key to identify when members’ behaviors begin to shift – and then act before dissatisfaction shows up in scores.”