Credit unions continue to outperform banks in customer satisfaction

In a year marked by economic uncertainty, credit unions continue to win the trust and loyalty of their members, outperforming traditional banks in nearly every category, according to a new survey. But, while overall satisfaction remains high, a closer look reveals growing tension among younger members, particularly over fees and digital performance.

According to the 2025 J.D. Power U.S. Credit Union Satisfaction Study, member satisfaction with credit unions holds steady at 729 on a 1,000-point scale—unchanged from last year. Yet, beneath that stability is a generational divide: satisfaction among members under 40 dropped four points and now trails those 40 and older by 16 points.

Credit Unions continue to outperform banks

Despite internal challenges, credit unions continue to trounce retail banks in overall satisfaction by a wide margin—74 points, to be exact. They outperform across the board in areas like trust, people, and problem resolution. It’s a performance gap that underscores the enduring appeal of the credit union model.

“I wish to thank Ambrossa for the excellent customer service she provided to me and my granddaughter on Friday,” Betty, of Columbus, Ga., wrote in a ConsumerAffairs review. “My granddaughter became a member of Navy Federal. Ambrossa made the process really easy. She was very helpful and extremely knowledgeable.”

“Credit unions are doing a great job when it comes to their core focus on delivering competitive rates and driving very high levels of member satisfaction, loyalty and brand advocacy,” said Dann Allen, senior director of banking and payments intelligence at J.D. Power, in a press release. “Top-ranked credit unions perform significantly better than banks in trust-related actions such as supporting members and providing convenience.”

Fees frustrate younger members

One potential warning sign for the industry is growing dissatisfaction with fees, particularly among younger members. Nearly one in three members under 40 say they “probably will” or “definitely will” leave their credit union in the next 12 months due to fees. Among members 40 and older, that number drops to 25%.

Though credit unions have long been recognized for lower fees compared to banks, perceptions among younger consumers suggest that expectation is no longer being met—or at least, not clearly communicated.

The study also found a direct correlation between financial health and satisfaction. Members who are considered financially healthy reported an average satisfaction score of 788, compared to just 702 for financially unhealthy members. Alarmingly, more than two-thirds (69%) of credit union members fall into the financially unhealthy category.

J.D. Power said this suggests that satisfaction isn't just about service, it's deeply tied to a member’s overall financial stability.