Best Banks and Credit Unions in the Midwest

Regional banks and credit unions may have a smaller physical footprint than big national financial institutions, but they can often be more flexible and provide better terms. They’re also familiar with the financial needs of residents in the areas they serve and can tailor their products to meet those needs. In some cases, they can offer surprising perks and a personal touch to banking.

To help you find the right one in the Midwest, Money researched dozens of financial institutions in that region. Based on their offerings, fees and customer service, here are our choices for the best banks and credit unions in the Midwest for 2024-2025:

• Digital Federal Credit Union - Best Overall
• U.S. Bank - Best for CDs
• Commerce Bank - Best Interest for Checking
• Bremer Bank - Best for Free Checking
• Veridian Credit Union - Best for Customer Satisfaction

*Rates and APYs are subject to change. All information provided was accurate as of Oct. 8, 2024.

Digital Federal Credit Union offers a wide range of banking products and services. It’s a credit union with limited branches, but it’s part of credit union share agreement throughout the Midwest. A variety of savings accounts offer above-average yields that are compatible with other banks and credit unions. You can also access checking accounts, including HSA checking.

Digital Federal Credit Union is what it sounds like: a mostly digital financial institution that offers access to credit union perks. While based in Massachusetts and New Hampshire, midwesterners can access in-branch banking through shared branches located throughout states throughout the midwest. There are more than 80,000 surcharge-free ATMs. In order to join, you need to meet the requirements of living in certain communities or working for specific employers. You can also meet membership requirements by joining certain organizations.

A range of the credit union's savings accounts offer above-average yields with low initial deposits. There are also interest-bearing checking accounts, although those yields are more in line with what other banks and credit unions offer. Digital Federal Credit Union also offers financial education, investment services and accounts for children. Most accounts have no monthly fees and low minimums to open.

U.S. Bank offers a variety of CD products at competitive rates, especially for shorter terms. In addition to its Standard CD, U.S. Bank also offers the Step Up CD and the Trade Up CD. U.S. Bank also offers a variety of checking and loan products and has branches located throughout the Midwest and West, including digital banking available across the country. It’s a full-service bank with access to savings, checking, CD, loan and investment services.

The Step Up and Trade Up CDs offer you the ability to receive rate increases during your term. However, some of the minimums are higher than you might expect. U.S. Bank also offers special CDs that have above-average yields. U.S. Bank also offers its Bank Smartly Checking with rewards that comes with overdraft protection and no fees on overdrafts of less than $50. However, the best Smart Rewards come when you have deposits totaling above $20,000, based on tiers. For those looking to build their banking relationship, this can be a good choice.

Commerce Bank offers interest checking with no minimum balance requirement to begin earning interest. The account comes with early pay when you have direct deposit, and you have access to an overdraft grace period. The bank has locations across the Midwest, including Illinois, Indiana, Iowa, Kansas, Michigan, Ohio and Oklahoma, as well as in some states outside the region. It offers an interest-bearing checking account that has no minimum to begin earning, although you might see a higher APY when your balance tops $1,000.

There’s a monthly fee with the interest checking account, but you can avoid it by setting up one direct deposit of at least $500 each month or by maintaining an average daily balance of $1,000. Commerce offers a referral program, allowing you to earn bonuses when others sign up at your recommendation. Commerce Bank has other products, including a savings account that will provide a bonus when you make monthly deposits for 11 months in a row. Connect your accounts to transfer from checking to savings.

Bremer Bank offers Select Banking, which entails a free checking account if you enroll in online statements. This basic checking account comes with a complimentary financial plan and insurance evaluation, as well as a free first order of wallet checks. The bank has branch locations in Minnesota, Wisconsin and North Dakota. If you live in those states, you might be able to travel to branches for banking. You do have access to more than 37,000 surcharge-free MoneyPass ATMs across the country. If you can’t access a fee-free ATM, Bremer Bank won’t reimburse you for out-of-network fees.

Though the Select Banking basic checking account normally has a $3 monthly fee, it can be waived simply by enrolling in online statements. You can also meet a minimum balance to waive the fee. You need $100 to open any Bremer checking account, and interest-bearing accounts have higher monthly fees and more difficult requirements to avoid the fees. Perks include complimentary financial planning and an insurance evaluation, which can help you get on the right financial path. Bremer also offers savings products, but the APYs are low compared to other banks. The money market offerings are more competitive.

Veridian Credit Union offers a variety of checking and savings account, including those aimed at children and teens. Veridian offers above-average rates on CDs and excellent customer service options. You can call on weekdays and for limited hours on Saturdays, as well as book appointments online and arrange for video calls. The credit union is open to everyone, no matter where they live, as long as they deposit $5 in a share account. However, branch locations are limited to Iowa, Minnesota and Nebraska. You can use the digital banking tools to take advantage of customer service that allows for calls, video calls and appointments.

Free ATM access is limited. In addition to unlimited usage at Veridian-owned ATMs, you can get 10 free transactions at certain ATMs that have the Cirrus, Shazam or Privileged Status logos. Veridian offers a variety of products and services, including savings and checking, as well as insurance and loans. CD rates are competitive, but you might need at least $1,000 to take advantage of the above-average rates offered by the credit union. Free checking accounts are interest-bearing, but you have to complete certain tasks, such as making a certain number of purchases and enrolling in direct deposit to get higher yields.

How we chose the Best Banks of 2024-2025

To determine our list of best banks for 2024-2025, Money staff evaluated hundreds of financial institutions. We then evaluated the interest rates offered, minimum required balances, fees charged, ATM accessibility and perks or rewards obtained by opening a specific account. You can read our full methodology here.

We researched leading regional financial institutions to identify the best banks and credit unions in the Midwest for 2024. We compared bank account options, rates, deposit minimums, fees and added benefits and features to select our top choices. We placed particular emphasis on banks with branch locations in midwestern states. We also prioritized banks with broad ATM networks and low fees.

You can read our full methodology here.

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