‘Some Cracks in the Credit Union Member Experience Are Starting to Emerge,’ New JD Power Satisfaction Study Finds

TROY, Mich.— While credit unions have historically outperformed retail banks in overall consumer satisfaction thanks to low fees, personalized service and great interest rates, some “cracks in the credit union member experience are starting to emerge,” according to the new JD Power 2026 U.S. Credit Union Satisfaction Study.

The study found overall satisfaction among credit union members stands at 725 on a 1,000-point scale, a four-point decline from a year earlier. Despite the drop, credit unions still score well above retail banks, which posted an average satisfaction score of 657.

The findings, however, are based on the nation’s 29 largest credit unions, and JD Power said the data points to a growing “soft switching” trend, in which members increasingly open accounts with multiple financial institutions and gradually shift balances elsewhere.

‘Should be Taken Seriously’

“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 Dann Allen, senior director of customer solutions at JD Power, in a statement.

More than half of members now hold checking (59%) and savings (56%) accounts with other institutions, the study found, with those figures rising in recent years. For the second consecutive year, more than 40% of members moved up to 10% of their deposits to other providers, often to meet short-term liquidity needs such as emergency savings and everyday household expenses.

The report found that lower engagement contributed to that shift, as members who moved funds elsewhere reported receiving significantly less financial advice than those who kept deposits with their primary credit union.

Younger members are driving much of the multi-institution behavior, particularly for deposit accounts. Members under age 40 were significantly more likely to hold accounts outside their primary credit union, often citing goals such as saving money, managing gig-related income or making loan payments—highlighting what the study describes as a generational shift in financial relationships, JD Power reported. 

The Role of Fees

J.D. Power also pointed to rising fees and declining understanding of fee structures as contributing factors. More than one-third (36%) of members reported incurring fees—such as overdraft, ATM or maintenance charges—within the past three months, up from a year earlier. At the same time, only 39% said they fully understand how their credit union’s fees work, down from 44%.

Communication gaps are also contributing to declining satisfaction, according to JD Power. Credit unions most frequently communicate with members via email and tend to emphasize topics such as new products, features and special offers—areas that generate relatively low satisfaction. Meanwhile, higher-value topics such as saving money and financial advice are communicated less often, the analysis found.

That misalignment has contributed to weaker engagement and reduced understanding of fees and ways to avoid them, the study said.

According to JD Power, key findings in the 2026 study include:

• Member satisfaction declines: Overall credit union member satisfaction is 725, down four points year over year. Loyalty metrics are also trending down, with the percentage of members who say they “definitely will” reuse their credit union falling to 71%, down two percentage points from last year.
• Credit unions lose checking and savings accounts: More than half of members now have checking (59%) and savings (56%) accounts with other financial institutions. The occurrence of accounts being established at other financial institutions has risen in the past two years, up by 2% for both checking and savings accounts.
• Incurred fees are up, fee understanding is down: More than one-third (36%) of credit union members have experienced a fee, such as an overdraft, ATM or account maintenance fee, in the past 3 months, up 3% from last year. Meanwhile, the percentage of members who say they completely understand how their credit union’s fee structure works falls to 39% from 44% last year, JD Power said.
• Member communication is misaligned: The topics credit unions communicate to their members most frequently—new products and features, current products and features and special offers—deliver low levels of member satisfaction, while topics correlated with higher levels of member satisfaction, such as ways to save money or financial advice, are not communicated as frequently, the analysis states.

SchoolsFirst Finishes at Head of Class

JD Power reported SchoolsFirst Federal Credit Union in California ranks highest in credit union member satisfaction for a second consecutive year, with a score of 792. Randolph Brooks FCU in Texas (751) ranks second and Navy Federal Credit Union in Virginia (747) ranks third.

About the Study

The U.S. Credit Union Satisfaction Study, now in its third year, measures member satisfaction with the 29 largest credit unions in the continental United States, JD Power said. It measures satisfaction 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 2026 study is based on responses from 10,386 credit union members. It was fielded from January 2025 through January 2026. The largest U.S. credit unions are defined as those with at least $7.5 billion in domestic deposits.

For additional info, go here.