The most trusted financial institutions? USAA and credit unions on clarkhoward.com

Institutional trust had been declining for years, but it really fell off a cliff in the last couple of years.

The financial sector has been hit hardest by the erosion of trust, according to a new survey from Forrester Research. There's been a widespread loss of faith in stockbrokers, financial planners, banks, insurance companies and others across the board.

There are, however, two glaring exceptions, two institutions that actually still command trust from the public! They are USAA and credit unions, and they're both tied for first place in the survey with a 68% vote of confidence.

USAA is an insurer of military personnel that has a large banking arm, a credit card operation, a home loan operation and more. Credit unions, meanwhile, were lumped together because no one institution was large enough to be on its own as a brand name.

Life insurers did horrible: New York Life (30%), Prudential (35%) and Nationwide (37%). And the stock brokerage firms didn't fare any better: Ameriprise (33%), Charles Schwab (39%) and Edward Jones (40%).

One absolute shocker was Vanguard. Clark has long trusted this organization, but it only received a 36% vote of confidence.

Forrester's survey of more than 5,000 households was conducted in the latter half of 2008.

What others are saying

Investments
USAA is divided into multiple companies Life Insurance, Investments, Banking, Property and Casualty. No complaints, excellent company now that Bob Davis has gone and with his gigantic salary bonuses of over several million annually (while he laid off the sick and disabled/w Holy Bible in hand at all times), but the USAA Investment division leaves a lot to be desired. Their rate of return isn't very good. As a company they have good success with investments but the Member Investment Division crashes and burns. Dont take my word look at its track record for the last 10 years. The stats speak for themselves. But the rest of the company is great!
By Sharon @ 11/03/09 09:14:09 PMreport abuse
USAA and Support
Ive been with USAA for over 8 years. In that time Ive went over seas and moved over 4 different times. In each case, USAA has been very helpful with insurance, credit advances, rental insurance, and banking. Although they are 100% online, their phone support is outstanding. I strongly recommend USAA for military, and friends / family of military. The bank is financially strong and usually has the best rates in loans and insurance.
By Troy Mowery @ 09/29/09 06:13:42 PMreport abuse
USAA
Bottom Line - they rock. Been with USAA since 1984. WE - USAA are taking care of our own. I'm happy to hear that because I've been a member, and served our nation, my kids can reap the benefits. Trash them all yo want for life's misfortune, but USAA is #1 in my book.
By sandy @ 09/17/09 10:44:49 PMreport abuse
Navy Federal Credit Union
None large enough to mention?! NFCU has over nearly 40 million is assets and 3.3 million members! NFCU is the largest credit union of them all! I've been a member with NFCU for over 26 years, after being a member for 25 years you get a .25% discount off of any loan product, you bet I took advantage of that with my mortgage. Right now they have a promotion for active duty and retired members for a extra .25% discount off of any loan product. I don't like how on the USAA website they say NFCU doesnt have any ATM rebates if you are active duty or retired you get $20 in ATM rebates and free checks. Does USAA have any branch locations? No. Does USAA have 24 hour member service? No. USAA is a for profit BANK. NFCU is a not for profit organization. You do the math.
By Nathan @ 08/09/09 02:43:50 AMreport abuse
USAA
I happen to love USAA but they do not love me. When my husband was transferred unexpectly and I have not been able to find a job, it has cramped our finances. We own a home in one area and having to rent in where we have been moved. Because of this, it is making it hard to support two household set of bills. USAA, who holds almost all of my loans, Credit cards, insurances, etc... is UNWILLING TO WORK WITH US, knowing that it is not that we wanted to move but HAD TO. Because of this, any late payment, even by a day, they will take away ones membership and REFUSE to work with anyone.
After 10 years with them and having a great record with them, one late payment caused us to be removed as members and mind you- IT WAS BY ONE DAY! USAA is great as long as you do not have any "oh no" issues come up.
By Misty @ 06/21/09 04:04:38 PMreport abuse
USAA for my family!
I have USAA as my main bank for my direct deposit and I love the company. I have accounts for my youngest son at USAA and for the oldest child at Navy Federal Credit Union, so I'm good on both ends, huh?!!
USAA is a great company. They take care of all my needs and care about me.
By Maketa @ 06/17/09 07:31:03 AMreport abuse
Ameriprise
Not surprising that these clowns came in at 33% trust. They're awful. I currently have less than what I "invested" in their awful products - from which the "advisor" will only move me from one awful product to another - and I still have less than I invested over the last seven and a half years after the market has been climbing out of its deep hole. I only hear from them, I'm certain, when they're legally bound to inform me of something. You'd think they'd want to keep their clients, but instead I'm about to fire them and start moving my investments somewhere that cares a bit more about their clients.
By Robert Hollowood @ 06/16/09 10:26:34 PMreport abuse
Glad to see State Farm
I have been insured with State Farm for 32 years and even financed several cars with them. I see they came in number 4 on the list. Good Neighbors
By Blake Thomas @ 06/16/09 09:25:18 PMreport abuse
E*Trade
I also had my first brokerage account with E*Trade and it was a bad experience. I had a small account and one day they sent me a letter advising me to keep at least $5,000 in my account right away or it would be closed down. I now have my Roth IRA account with Fidelity. I can buy stocks, bonds, CDs, etc. with great customer service and no problems!
By Still lots to learn @ 06/16/09 12:41:17 PMreport abuse
Where's E*Trade on that list?
E*Trade should have made the list of the least desirable brokerage. I finally kicked them to the curb after they had the tumerity to discontinue their propriatary index funds at the height of the stock market crunch. They demanded that customers sell everything within 60 days, meaning of course we lost HUGE money. So much for riding out the storm! I was well-diversified, so I only lost a few thousand, but I'm sure others lost much more. All this, after huffing-and-puffing about how well funded and managed they were. BAH! Don't believe ANY of that horsehockey that brokerage firms (and banks for that matter) lay on you. My bank of choice now? You got it --my bed matress, the only banking institution around that doesn't lie and cheat people.
By Another old guy @ 06/16/09 11:12:58 AMreport abuse
USAA for 50 years!
I joined USAA in 1956 as a young, naive aviation cadet.
At the time I did only auto insurance.
Now, 53 years later, I do my banking with them online, as well as all my insurance business, mutual funds, and even my 16 y/o grand daughter's first checking account... a learning experience for both of us! :-)
Never a problem and the best customer service imaginable.
You cannot go wrong with USAA.
L. Doub, Valdosta, GA
By L. Doub @ 06/16/09 10:58:52 AMreport abuse
Vanguard
I'm a long time Vanguard client, and I recently experienced something that left me wondering whether the powers-that-be have a clue about their brainless marketing people!
Vanguard emailed me marketing materials. Normally that's not a big deal except in this instance, the message did not contain the usual web link to remove oneself from the mailing list, but a telephone number! Of course, once you call the number and actually reach someone, you get another sales pitch before the rep will remove you from the list.
That's just tacky for a once, well-respected firm.
By Greg @ 06/16/09 07:25:17 AMreport abuse
USAA
I have been a member since about 1974. USAA has great homeowners and car insurance. The Asset Management account provides a credit card with no annual fee and 1% back, web bill pay, free checking and a discount brokerage for my investments and IRA. The bank has a good Texas ratio. I was very happy with USAA's car buying service, which I used on my last two cars. Clark is always reporting how bad credit card companies can be. USAA is an example of how good good one can be be. Of course, they are at zero risk for users like me who have funds in the bank to cover any credit card purchases.
About the only thing I can complain about is their mutual funds which underperform Vanguard's or ETFs.
By David Kerr @ 06/16/09 12:30:17 AMreport abuse

Investments

USAA is divided into multiple companies Life Insurance, Investments, Banking, Property and Casualty. No complaints, excellent company now that Bob Davis has gone and with his gigantic salary bonuses of over several million annually (while he laid off the sick and disabled/w Holy Bible in hand at all times), but the USAA Investment division leaves a lot to be desired. Their rate of return isn't very good. As a company they have good success with investments but the Member Investment Division crashes and burns. Dont take my word look at its track record for the last 10 years. The stats speak for themselves. But the rest of the company is great!

By Sharon @ 11/03/09 09:14:09 PMreport abuse

USAA and Support

Ive been with USAA for over 8 years. In that time Ive went over seas and moved over 4 different times. In each case, USAA has been very helpful with insurance, credit advances, rental insurance, and banking. Although they are 100% online, their phone support is outstanding. I strongly recommend USAA for military, and friends / family of military. The bank is financially strong and usually has the best rates in loans and insurance.

By Troy Mowery @ 09/29/09 06:13:42 PMreport abuse

USAA

Bottom Line - they rock. Been with USAA since 1984. WE - USAA are taking care of our own. I'm happy to hear that because I've been a member, and served our nation, my kids can reap the benefits. Trash them all yo want for life's misfortune, but USAA is #1 in my book.

By sandy @ 09/17/09 10:44:49 PMreport abuse

Navy Federal Credit Union

None large enough to mention?! NFCU has over nearly 40 million is assets and 3.3 million members! NFCU is the largest credit union of them all! I've been a member with NFCU for over 26 years, after being a member for 25 years you get a .25% discount off of any loan product, you bet I took advantage of that with my mortgage. Right now they have a promotion for active duty and retired members for a extra .25% discount off of any loan product. I don't like how on the USAA website they say NFCU doesnt have any ATM rebates if you are active duty or retired you get $20 in ATM rebates and free checks. Does USAA have any branch locations? No. Does USAA have 24 hour member service? No. USAA is a for profit BANK. NFCU is a not for profit organization. You do the math.

By Nathan @ 08/09/09 02:43:50 AMreport abuse

I happen to love USAA but they do not love me. When my husband was transferred unexpectly and I have not been able to find a job, it has cramped our finances. We own a home in one area and having to rent in where we have been moved. Because of this, it is making it hard to support two household set of bills. USAA, who holds almost all of my loans, Credit cards, insurances, etc... is UNWILLING TO WORK WITH US, knowing that it is not that we wanted to move but HAD TO. Because of this, any late payment, even by a day, they will take away ones membership and REFUSE to work with anyone.
After 10 years with them and having a great record with them, one late payment caused us to be removed as members and mind you- IT WAS BY ONE DAY! USAA is great as long as you do not have any "oh no" issues come up.

By Misty @ 06/21/09 04:04:38 PMreport abuse

USAA for my family!

I have USAA as my main bank for my direct deposit and I love the company. I have accounts for my youngest son at USAA and for the oldest child at Navy Federal Credit Union, so I'm good on both ends, huh?!!
USAA is a great company. They take care of all my needs and care about me.

By Maketa @ 06/17/09 07:31:03 AMreport abuse

Ameriprise

Not surprising that these clowns came in at 33% trust. They're awful. I currently have less than what I "invested" in their awful products - from which the "advisor" will only move me from one awful product to another - and I still have less than I invested over the last seven and a half years after the market has been climbing out of its deep hole. I only hear from them, I'm certain, when they're legally bound to inform me of something. You'd think they'd want to keep their clients, but instead I'm about to fire them and start moving my investments somewhere that cares a bit more about their clients.

By Robert Hollowood @ 06/16/09 10:26:34 PMreport abuse

Glad to see State Farm

I have been insured with State Farm for 32 years and even financed several cars with them. I see they came in number 4 on the list. Good Neighbors

By Blake Thomas @ 06/16/09 09:25:18 PMreport abuse

E*Trade

I also had my first brokerage account with E*Trade and it was a bad experience. I had a small account and one day they sent me a letter advising me to keep at least $5,000 in my account right away or it would be closed down. I now have my Roth IRA account with Fidelity. I can buy stocks, bonds, CDs, etc. with great customer service and no problems!

By Still lots to learn @ 06/16/09 12:41:17 PMreport abuse

Where's E*Trade on that list?

E*Trade should have made the list of the least desirable brokerage. I finally kicked them to the curb after they had the tumerity to discontinue their propriatary index funds at the height of the stock market crunch. They demanded that customers sell everything within 60 days, meaning of course we lost HUGE money. So much for riding out the storm! I was well-diversified, so I only lost a few thousand, but I'm sure others lost much more. All this, after huffing-and-puffing about how well funded and managed they were. BAH! Don't believe ANY of that horsehockey that brokerage firms (and banks for that matter) lay on you. My bank of choice now? You got it --my bed matress, the only banking institution around that doesn't lie and cheat people.

By Another old guy @ 06/16/09 11:12:58 AMreport abuse

USAA for 50 years!

I joined USAA in 1956 as a young, naive aviation cadet.
At the time I did only auto insurance.
Now, 53 years later, I do my banking with them online, as well as all my insurance business, mutual funds, and even my 16 y/o grand daughter's first checking account... a learning experience for both of us! :-)
Never a problem and the best customer service imaginable.
You cannot go wrong with USAA.
L. Doub, Valdosta, GA

By L. Doub @ 06/16/09 10:58:52 AMreport abuse

Vanguard

I'm a long time Vanguard client, and I recently experienced something that left me wondering whether the powers-that-be have a clue about their brainless marketing people!
Vanguard emailed me marketing materials. Normally that's not a big deal except in this instance, the message did not contain the usual web link to remove oneself from the mailing list, but a telephone number! Of course, once you call the number and actually reach someone, you get another sales pitch before the rep will remove you from the list.
That's just tacky for a once, well-respected firm.

By Greg @ 06/16/09 07:25:17 AMreport abuse

I have been a member since about 1974. USAA has great homeowners and car insurance. The Asset Management account provides a credit card with no annual fee and 1% back, web bill pay, free checking and a discount brokerage for my investments and IRA. The bank has a good Texas ratio. I was very happy with USAA's car buying service, which I used on my last two cars. Clark is always reporting how bad credit card companies can be. USAA is an example of how good good one can be be. Of course, they are at zero risk for users like me who have funds in the bank to cover any credit card purchases.
About the only thing I can complain about is their mutual funds which underperform Vanguard's or ETFs.

By David Kerr @ 06/16/09 12:30:17 AMreport abuse

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Jun 15, 2009 -- The most trusted financial institutions? USAA and credit unions

What others are saying