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Many banks and credit unions tailor their products and services to better serve their customers. And some focus specifically on serving military personnel and their families.
We compared the top FDIC- and NCUA-insured banks and credit unions for military members, evaluating key metrics such as membership eligibility requirements, fees, customer experience, product choice, and more. (See our full methodology here.)
The following is our ranking of the five best banks and credit unions for military members, veterans, and their families in 2025. Read on to learn more about each one.
Pentagon Federal Credit Union (PenFed) serves more than 2.9 million members globally. It offers checking and savings accounts, credit cards, auto loans, home loans, and more.
PenFed offers VA loans with a 0% down payment option and no private mortgage insurance. It also gives back to military members and their families through the PenFed Foundation — a national nonprofit committed to empowering military service members, veterans, and their communities. Since 2001, the foundation has provided more than $50 million in financial support, impacting more than 140,000 military families.
PenFed received an almost perfect score in our fees, product selection, and account features categories thanks to its lack of monthly account fees and vast list of products and services, overdraft protection options, and other perks such as Zelle integration and early direct deposit. It also scored well in our security category and made our list of the 10 best credit unions overall.
Unlike many credit unions, PenFed has an open charter. Anyone can become a member by opening a share account.
Read more: 7 credit unions anyone can join
Chase Bank is the largest bank in the U.S., operating more than 4,900 branches and 16,000 ATMs across the nation. Chase offers a wide range of financial products, including credit cards, checking and savings accounts, certificates of deposit (CDs), home and auto loans, and business and commercial banking products.
Chase offers several benefits for military members and veterans. For example, they can get all the perks of Chase Premier Plus Checking, including no Chase fees at non-Chase ATMs, no Chase fees on incoming or outgoing wire transfers, and no Chase fee for foreign exchange rate adjustments on debit card purchases or ATM withdrawals. Plus, Chase will waive the $25 monthly service fee for current service members and veterans of the U.S. Armed Forces with a qualifying military ID.
Read more: Capital One vs. Chase: Which bank is best for you?
Navy Federal Credit Union, commonly referred to as Navy Fed, was established in 1933 and has since grown to serve 14 million members of the Department of Defense, Army, Marine Corps, Space Force, and Coast Guard, as well as veterans and their families. Navy Fed offers personal and business products and services, including checking and savings accounts, credit cards, loans, and more.
Navy Fed offers military customers up to $20 in ATM fee rebates, free military checks, early access to military pay with qualifying military direct deposit, APR discounts on select loans, and more.
Read more: USAA vs. Navy Federal Credit Union: Which is better for military banking needs?
Capital One is a Virginia-based credit card company founded in 1994. Over the years, Capital One has expanded its offerings to include a full suite of banking products and services for consumers and businesses. Capital One also gives customers access to an extensive library of educational resources and credit tools.
Capital One caps interest at no more than 4% for credit cards, lines of credit, auto loans, home equity loans, and more for all active-duty service members, reservists, and members of the National Guard. There are also no fees assessed on accounts, except bona-fide insurance.
Read our full review of Capital One
Armed Forces Bank was founded in 1907 and serves active-duty military, veterans, retirees, DOD, civilians, and their families across all 50 states and around the world.
Armed Forces Bank offers personal and business checking and savings accounts, CDs, loans, and more. Its military customers can take advantage of free checking options, early pay, quick access to personal loans, and VA home loans.
Read more: Best VA loan lenders of February 2025
Military-friendly institutions offer products and services designed to meet the needs of service members and their families. Often, this means more favorable interest rates, lower or no account fees, more locations near military bases, worldwide access to banking services, customer support to better serve service members abroad, military pay advance options, and housing assistance programs.
Military banks and credit unions may also have their own nonprofits or volunteer initiatives that work to support military communities and their families.
If you’re a service member or veteran or related to one, there are several considerations to keep in mind when choosing a military-friendly financial institution. Some key factors to consider may include:
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Nationwide or global accessibility: If you travel or relocate frequently, having access to online banking tools and a large branch network is key.
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Favorable product rates and fees: Take a look at the products, services, rates, and fees offered by the military banks you’re considering. It pays to do some comparison shopping across several institutions to make sure you’re getting the best possible rates and low- or no-fee accounts.
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Deployment benefits: Many military banks and credit unions offer benefits specifically for active-duty service members, such as interest rate caps, debt relief for debt incurred before active duty, foreclosure protections, and more.
Our grading system, collected and carefully reviewed by our personal finance experts, is comprised of over 200 data points related to FDIC- and NCUA-insured institutions to develop our list of the top five best banks and credit unions for military. We compared these institutions across key metrics, including fees, customer experience, product selection, account features and security, and environmental and social responsibility.
The financial institutions on our list could earn a maximum of 72 points across all categories. Here’s a closer look at the categories we considered:
Fees and insurance: 20 points
We evaluated each bank or credit union’s fees for its most basic checking and savings account options, as well as overdraft fees and ATM fees. Financial institutions were awarded points for having no or low fees, greater fee transparency, and clear fee structures.
Customer service experience: 25 points
Personalized customer service is a key benefit of many banks and credit unions, though some are better than others. The institutions we evaluated were scored on metrics including access to a physical branch, mobile app ratings on Apple and Google storefronts, and methods for reaching customer service representatives. Banks and credit unions that offered phone, chat, and email or secured message contacts were awarded the maximum points in that category.
We also examined each website for information clarity as part of the customer service assessment, evaluating each bank or credit union’s website design, ease of navigation, language clarity, and whether customers could easily gather all the information needed to make an informed decision about any particular product.
Institutions that offered more extensive ATM networks, credit monitoring tools, and educational resources earned extra points.
Product selection and account features: 14 points
Each financial institution we analyzed could earn one point per product for each of the following:
We also looked at the speed of ACH transfers and gave points for same- or next-day transfers, early access to paychecks, Zelle as a service, and being part of FedNow — the Federal Reserve’s instant payment service.
Security: 10 points
We carefully considered each bank or credit union’s security measures to protect your money and sensitive information. We looked at factors such as multifactor authentication, website encryption, alerts for suspicious activity, zero fraud liability, and whether each institution had a dedicated online security page or hub.
Environmental and social responsibility: 3 points
Many consumers consider a financial institution’s carbon footprint and philanthropic efforts before deciding who to bank with. As such, banks and credit unions that have dedicated pages to their philanthropic efforts and environmental goals and have pledged to reach net zero CO2 emissions by 2050 scored up to 3 points for doing so.