Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Many freelancers and independent professionals get by without a separate business bank account. They commingle their personal and business funds on the reasoning that it all ends up in the same place eventually.
To the extent that this happens because self-employed folks without serious business chops feel overwhelmed by the idea of separating business and personal finances, it shouldn’t. Not with small-business and freelancer-friendly business banking options like nbkc Free Business Checking.
With no minimum balance requirements or monthly fees, nbkc Free Business Checking is designed for value-conscious entrepreneurs. While it’s nowhere near perfect, it’s worth considering if the alternative is a messy status quo.
What Is nbkc Free Business Checking?
nbkc Free Business Checking is a small-business checking account with no monthly fee, no minimum balance requirement, and FDIC insurance up to statutory limits.
nbkc Free Business Checking has some other features worth noting, including free overdraft coverage, free domestic wire transfers, a Mastercard debit card, a generous ATM surcharge allowance, and robust mobile capabilities. However, it has no debit card rewards program and doesn’t pay interest on balances. It lacks some nonbanking features that many similar accounts offer, such as custom expense tracking and built-in invoicing.
What Sets nbkc Free Business Checking Apart?
nbkc Free Business Checking stands out from other small-business bank accounts for several reasons:
Very few fees. This account has no monthly fee, no overdraft fees, no wire transfer fees, and very few of the less-common fees other bank accounts typically charge.
No minimums or transaction limits. nbkc Free Business Checking has no minimum balance requirements and no limits on transaction count or value. Many other business checking accounts impose such limits, which can be costly and inconvenient.
Generous ATM surcharge reimbursement. nbkc reimburses up to $12 in out-of-network ATM surcharges each month. That should be plenty for most users.
No rewards. One notable downside of this account is its total lack of a debit card rewards program. As more business accounts offer returns on debit card spending, this omission looms ever larger.
Key Features of nbkc Free Business Checking
nbkc Free Business Checking has all the features you’d expect from a basic business checking account, and few extras beyond that.
Account Fees & Minimums
There’s no minimum balance to open or maintain your account. There’s also no monthly maintenance fee and very few fees for other account activities.
Account Yield
This account pays no interest on any balances. Nbkc has no business savings account either, leaving no way to earn interest on business balances.
Debit Card & ATM Access
This account comes with a Mastercard debit card that works at millions of in-person and online points of sale worldwide.
As part of the MoneyPass network, nbkc offers fee-free withdrawals at tens of thousands of ATMs across the United States. Out-of-network ATM withdrawals may incur fees that nbkc can’t control, but nbkc reimburses them up to $12 per monthly statement cycle.
Overdraft Coverage
nbkc Free Business Checking offers complimentary overdraft coverage at its discretion. If the bank allows an overdraft transaction to go through, it charges no fee for the privilege. However, nbkc reserves the right to deny overdraft transactions at its discretion, also with no fee.
Mobile Features
nbkc’s mobile app has solid ratings from verified users in the Apple App Store and Google Play marketplace. It shares its core functions and capabilities with the desktop banking interface:
Remote check deposit
Person-to-person payments
Scheduled and one-time bill payments
Expense tracking
Viewing and managing statements
Deposit Insurance
This account comes with federal deposit insurance up to the current limit of $250,000. If nbkc goes out of business, the FDIC steps in to ensure you lose nothing below this amount.
Pros & Cons
nbkc Free Business Checking is a straightforward small-business bank account with some clear advantages and some equally notable downsides.
No monthly fee
No minimum balance requirements
Generous ATM fee reimbursements
Free overdraft coverage
No interest on balances
No rewards
Few nonbanking features
Pros
nbkc Free Business Checking is affordable, easy to understand, and easy to use.
No monthly fee. This account charges no monthly fee, no matter how little (or how much) you keep in your account. This is excellent news for budget-conscious freelancers and small-business owners.
No minimums. There’s no minimum deposit or ongoing balance required to keep this account in good standing. Again, that’s good news for users without lots of cash to spare.
No transaction limits. Unlike some business bank accounts, nbkc Free Business Checking has no upper limit on transaction volumes. This is good if your business makes or receives lots of small-dollar transactions each month.
Generous ATM fee reimbursement. nbkc reimburses up to $12 in out-of-network ATM fees each statement period. That’s in addition to free withdrawals at tens of thousands of MoneyPass ATMs around the country.
Free overdraft coverage. nbkc charges nothing to process overdraft transactions. Though it may decline these transactions on a case-by-case basis, there’s no nonsufficient funds fee associated with a denial either.
Comprehensive mobile app. nbkc has a straightforward, easy-to-use mobile app that replicates the traditional online banking interface in a smaller format. Some competing business bank accounts are unacceptably clunky or feature-poor on mobile.
Cons
Nbkc Free Business Checking isn’t particularly rewarding and lacks some of the potentially valuable business capabilities available from some similar accounts.
No interest on balances. This account pays no interest on balances. If you want to earn a return on your company’s emergency savings fund or any other funds you don’t need right away, you’ll need to open a savings account with another bank.
No debit card rewards. nbkc has no debit card rewards program. In other words, there’s no return on spending here, unlike at many competing business banks.
Few nonbanking features. nbkc Free Business Checking is a very basic bank account. It has few useful nonbanking features, such as built-in invoicing, tax management, or accounting (beyond basic expense categorization).
How nbkc Free Business Checking Stacks Up
nbkc Free Business Checking competes against dozens of other small-business checking accounts, each with its own unique mix of features and capabilities. One of its top competitors is the NorthOne Deposit Account, a more expensive and more capable option for growing businesses.
nbkc Free Business Checking
NorthOne Deposit Account
Monthly Fee
$0
$10
Minimum Balance
$0
$0
Subaccounts
No
No, but has a built-in envelope budgeting feature
Yield
None
None
ATM Access
About 40,000 free ATMs and $12 in monthly reimbursements
Unlimited (no ATM withdrawal fees anywhere)
With no monthly fee and a generous ATM reimbursement allowance, nbkc Free Business Checking is ideal for small, budget-conscious freelancers and business owners who don’t ask much more of their business accounts. NorthOne is a better fit for entrepreneurs who need more features and services.
Final Word
nbkc Free Business Checking is an easy-to-use business bank account that’s even easier to understand. If you’re a freelancer or self-employed individual with straightforward business finances and no need for bells and whistles, it’s a reasonable choice — though not quite the best in the category.
If your financial needs are more complicated or you’re planning to grow your business in the coming years, nbkc Free Business Checking probably isn’t powerful enough for you. Fortunately, other business bank accounts are.
The Verdict
Our rating
nbkc Free Business Checking
nbkc Free Business Checking is a basic business checking account designed for freelancers and owners of small businesses with simple finances. With no monthly fees or minimums, it delivers solid value for users who don’t ask much of their business banking partners. But it lacks the firepower for larger businesses and enterprises with more complicated accounting needs.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
After the recent failures of Silicon Valley Bank and Signature Bank, you may wonder if your money is safe in a U.S. bank or credit union account. And while they’re reasonably rare (fewer than three per year), bank failures do happen.
Fortunately, the United States has systems in place to ensure failed banks don’t lead to the types of personal catastrophes we saw during the Great Depression, including regulatory oversight and a deposit insurance program.
But are those systems enough to protect your hard-earned cash, and can you choose a bank with the lowest risk and greatest odds of long-term success?
What Is Deposit Insurance, & How Does It Safeguard My Deposit?
Federal deposit insurance backed by the U.S. government protects the money in your covered accounts against a bank failure. If your money is in a protected financial institution, and that institution fails, the government covers that money. No depositor has ever lost their government-insured funds.
Its primary purpose is to promote confidence in the banking system, ensure financial stability, and prevent bank runs or mass withdrawals by depositors during times of economic uncertainty.
How Does Deposit Insurance Work?
Banks and credit unions must pay deposit insurance premiums each month just like you do for your car or health insurance. In return, the federal government, through federal agencies known as the Federal Deposit Insurance Company (for banks) and National Credit Union Administration (for federal credit unions), insures all eligible accounts for up to the federally mandated limit.
If a bank fails, the government steps in to ensure you don’t lose your money. Often, it sets up a bridge bank that allows depositors to access their money until someone purchases the defunct bank or customers have had adequate time to find a new bank.
When SVB failed, the government stepped in immediately to create a bridge bank (cleverly called Silicon Valley Bridge Bank) and make funds available to depositors. Sometimes, the FDIC or NCUA deposits funds into an insured bank and creates an account for each insured customer. Other times, depositors receive a check for the insured balance, typically within a few business days of the original institution’s closure. But you may have to file a claim to access your money or get coverage.
Coverage Limits
FDIC and NCUA insurance backs deposits of up to $250,000 per account holder per account type. If you have more than that amount, you must keep your money in different account types or at different banks to ensure full coverage. Or you can opt for a private bank that carries private insurance with higher limits.
Note that joint accounts are covered for up to double the amount an account with only one owner is, even if one of the account holders is a minor.
Also note that some cash-management accounts and neobanks offer coverage in excess of the FDIC limit through a sweep network. They deposit your funds across various insured banks to provide coverage of $2 million or more per depositor.
Eligibility
Both banks and federal credit unions must carry this insurance. Otherwise, they cannot make a claim of being a bank or federal credit union.
For example, neobanks don’t carry deposit insurance and technically aren’t banks. That’s why the fine print on some fintech websites reads, “Not a bank.” Usually, that fine print also shares the name of the bank backing the funds. But if the account isn’t backed by a bank or credit union, tread carefully.
Similarly, while not banks themselves, brokerages and investment apps like Robinhood, person-to-person payment platforms like Paypal or Venmo, and non-bank financial companies often hold deposits in the FDIC-insured accounts of partner banks.
For instance, funds held in Robinhood’s cash-management account are FDIC-insured by the partner bank. Likewise, money in your Paypal savings account is FDIC insured by Synchrony Bank.
Notably, some states require state-chartered credit unions to carry federal insurance. But others have no such requirements. Always look for the FDIC-insured or NCUA-insured logos to ensure your money is safe.
Types of Deposits Covered
Types of accounts insured by the FDIC or NCUA include but are not limited to:
Checking
Savings
Money market deposit accounts
Time deposits like CDs (certificates of deposit)
Negotiable order of withdrawal accounts
Cashier’s checks, money orders, and other official payment instruments issued by a bank
That means you can have up to the maximum insured amount in all those types of accounts, including double in any that are joint accounts with someone else, before another bank is your only option. That said, if you have that kind of money, diversifying your holdings into different banks isn’t a terrible idea.
Note that FDIC and NCUA insurance don’t protect against fraud. Check with your bank, credit union, or financial technology company to determine whether your account has protection against fraud or scams. Read the fine print on your financial institution’s website to see if it carries fraud insurance and the limits.
Other Factors Affecting Deposit Safety
You might still be wondering: Is my bank deposit really safe? While FDIC insurance can give you peace of mind, many factors influence deposit safety.
Diversification of Deposits
Now that you know FDIC and NCUA insurance only covers deposits up to $250,000 per depositor per account type, you may be wondering what you can do to prevent your account from exceeding that amount.
First, you can add a joint account holder to double your coverage. Also, diversifying your deposits across multiple financial institutions ensures coverage for all your money.
Some banks offer what they call “relationship banking” with special privileges for depositors that hold certain amounts in their bank. Typically, you can spread the total amount across deposit accounts. For example, you can have a money market, CD, savings account, and checking account, each with the maximum amount, to meet a steep minimum.
But even if you don’t have that much, you can still benefit from diversifying your funds across accounts. If a bank fails, it may take time to reclaim your deposits through FDIC insurance.
Keeping some emergency funds in a separate bank can help you in a pinch. Even if you’re living paycheck to paycheck, try to save some money in a savings account at a different bank to access in an emergency. Whether your bank fails or you’re a victim of fraud, you’ll be thankful to have a way to access some money.
Banking Regulations & Supervision
The Great Depression made it painfully apparent that banking regulations were necessary to protect regular joes from those whose money and decisions moved the economy.
During that period, the U.S. government introduced the Glass-Steagall Act to do just that. It separated investment activities from commercial banks. The act aimed to protect bank deposits from a crashing stock market and risky investments.
But in 1999, some provisions of the act were repealed to allow universal banking. Some say that led to mergers that created mega-banks while also leading to looser lending standards that eventually led to the 2008 mortgage crisis. The Dodd-Frank Act, introduced in 2010, sought to reintroduce some protections to consumers. Unfortunately, some provisions of the Dodd-Frank Act were repealed a few short years later, leaving us with the system we have today.
As of this writing, several regulatory agencies supervise the internal operations of banks, which (purportedly) help safeguard against bank failure. They are:
The Federal Reserve, which supervises member state-chartered banks and financial holding companies
The Office of the Comptroller of the Currency (OCC), the oldest bank regulatory agency in the U.S.
The Federal Deposit Insurance Company, organized in 1934, and National Credit Union Administration, organized in 1970 to protect deposits up to allowable federal limits
State banking agencies, which conduct bank examinations and construct and enforce regulations at the state level
But a handful of other agencies also help protect consumer rights when it comes to fair banking and credit practices. They are:
The Consumer Financial Protection Bureau, which ensures financial institutions like banks and credit unions treat you fairly
The Federal Trade Commission, which has no jurisdiction over banks or credit unions directly but has authority over companies that may hold your funds in banks, such as mortgage companies and mortgage brokers, and those who may try to get money from your bank account, such as creditors and debt collectors
The Department of Justice, which doesn’t directly enforce laws or oversee any institution but is ultimately responsible for the proper enforcement of those laws and may take banks or credit unions to court on behalf of wronged customers
Bank Stability & Financial Health
Banks don’t hold all your deposits in their vaults. Instead, banks invest the money, ideally in high-yield accounts so they can profit from your deposits while offering you and other customers adequate savings returns.
However, when Signature Valley Bank failed, it had sold off government bonds and taken a $2 billion loss. That’s on top of being overextended in risky tech ventures. Tech investors like Peter Thiel began advising companies to pull their money from SVB as protection, causing a bank run.
That should have been OK — or at least better than it was. At all times, banks should have enough capital to accommodate a certain number of withdrawals. When it failed, SVB did not.
In addition to not being able to field withdrawals, it was the largest of several banks to fail in close succession, sparking fears of a financial domino effect. Then, they announced their intention to raise capital to cover the bonds they just sold off, making matters far worse. It’s a Depression-era-worthy cautionary tale.
But it’s not like there weren’t warning signs. Fortunately, there are several things you can do to evaluate your bank’s safety.
Cybersecurity
We all know that these days, you have to keep your personal information safe — and that every business that has it is one more point of potential compromise.
Banks have more than just your bank account numbers and PINs. They also have information like your Social Security number, contact information (physical and email addresses, phone numbers), and date of birth. If you use online banking to pay bills or have a credit card through the bank, they even have your account numbers for those.
That much information being compromised is a terrifying proposition. Fortunately, there are loads of laws and regulations aimed at protecting that information and your identity in general. To find out if your bank is doing everything it can, compare their cybersecurity methods to the latest available and industry-standard protections.
Those change over time, so if it’s all a little above your head, ask to speak with your bank’s information security officer or a team member. They should be able to answer your questions. You can also look to industry blogs to find out what articles information security officers are reading. For example, RedTeam Security has some handy questions banks should be asking themselves.
Is My Bank Deposit Safe?
Consider a bank or credit union’s reputation, ratings and financial stability. If you choose a bank the government considers too big to fail, you can be assured the U.S. government will do everything in its power to keep the bank up and running. Don’t make assumptions about what size gets a bank on the list. When it failed, SVB was one of the largest banks in the U.S.
However, big banks often have high fees and low interest rates on savings. You may want to choose a smaller bank or credit union instead. That’s when it’s critical to do your research and evaluate the safety of your deposit.
Most banks and credit unions must follow specific standards stipulated by the Federal Reserve and FDIC or NCUA, for capital requirements and liquidity.
Check their financial statements to see if they’re involved in anything too risky or have too many spoons in the same pot. For example, SVB wasn’t terribly diversified. They had a lot of investments in tech. In fact, they were known for it. To make matters worse, those investments were too risky — way riskier than would have been allowed under Glass-Steagall, for example.
You can also use financial ratios to measure a bank’s financial stability. The key figure to judge a bank’s stability, the capital adequacy ratio, looks at the bank’s ability to cover liabilities and respond to credit or operational risks.
Look for a capital adequacy ratio of 8% to 12% (though that number changes over time). Regulators conduct stress tests for capital adequacy and market liquidity and have the authority to shut down financial institutions that don’t meet requirements.
The provision coverage ratio shows the bank’s ability to service its debt. You’re looking for a 70% or higher ratio here.
These numbers are important because they show the liquid assets a bank has available. One reason SVB failed is because it didn’t have enough assets to cover withdrawals.
You can also check a bank’s Standard & Poor’s credit rating, which runs from AAA to D. Avoid any financial institutions with a rating lower than BBB, and lean toward those with an A rating or higher.
Final Word
When you’re choosing a bank or credit union for your hard-earned money, you want to be sure your cash is safe, first and foremost. Once you find a financial institution that provides that peace of mind through its reputation, financial rating, and deposit insurance, you can consider other factors, such as interest rates, fees, and customer service.
In addition to deposit insurance, ensure the bank you choose also has fraud protection insurance. If cybercriminals hack into your account and steal your money, deposit insurance doesn’t cover those funds.
Read bank and credit union reviews to find an account that checks all your boxes for deposit safety, fraud protection and insurance, low fees, and good customer service.
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Dawn Allcot is a freelance writer and content marketing specialist who geeks out about finance, technology, and travel. Her lengthy list of publishing credits include TheStreet, Chase Bank, Forbes, and MSN. She is the founder and owner of Allcot Media Marketing and GeekTravelGuide, where she shares her love for roller coasters, family travel, healthy living and keto foods.
If you’re on the lookout for a full service online bank, you might come across CIT Bank. Founded in 2009, CIT Bank is now a division of First-Citizens Bank & Trust Company, which is a leading financial institution with more than $218 billion in assets.
The bank offers a variety of products, including savings and checking accounts, CDs, custodial accounts, and home loans. It stands out for its competitive interest rates that you may not find at traditional banks as well as no monthly maintenance fees or monthly service fees.
While there are no physical branches, live chat support on CIT’s website and mobile app as well as automated phone assistance is available 24/7. If you prefer to speak to a CIT representative directly, you can reach them during regular business hours: Monday through Friday, 9 a.m. to 9 p.m. ET, or Saturday from 10 a.m. to 6 p.m. ET.
CIT Bank doesn’t have an ATM network but it will reimburse you up to $30 per month if you incur out-of-network ATM fees. Rest assured that it’s insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for an individual account or $500,000 for joint accounts, meaning your money will be safe, no matter what happens to the bank. Let’s take a closer look at CIT Bank so you can decide whether it makes sense for your unique situation.
CIT Bank Pros and Cons
Before you move forward and open an account with CIT Bank, it’s a good idea to consider the benefits and drawbacks.
Pros
Competitive rates: Since CIT Bank has less overhead costs than brick and mortar financial institutions, its yields on deposit accounts and several CIT Bank CDs are competitive. It can allow you to make the most out of your hard earned money.
No fees: Unlike other bank accounts, CIT deposit accounts do not have any monthly maintenance fees, or other common fees. You can use the money you save on fees to meet your financial goals faster.
ATM fee reimbursement: CIT Bank reimburses you up to $30 per month for out-of-network ATM fees. This means you can withdraw cash from any ATM without worrying about high costs.
Small minimum deposit requirements: You don’t need a lot of cash to open up CIT Bank accounts. Many. of the accounts only require $100 to start.
24/7 customer service: CIT’s live chat and automated phone support is available round-the-clock. If you have a question or concern, you’ll be able to receive assistance right away.
Cons
No physical branch locations: CIT is an online only bank, meaning there are no branches for an in-person banking experience. If you decide to bank with CIT, you should feel comfortable with online banking and mobile banking.
Limited product selection: Compared to other financial institutions, CIT’s product line is slim as there are no credit cards, car loans, or IRAs. Fortunately, its lineup of checking accounts, savings accounts, custodial accounts, CDs, and mortgages is still impressive.
Low rates on select CD accounts: Some CDs have lower rates than you may be able to find elsewhere. The good news is you can calculate your returns in advance and won’t have to worry about fluctuations in the market.
No checkbooks: CIT’s eChecking accounts do not include checkbooks. However, you can use CIT to pay other individuals and businesses electronically via Zelle, Apple Pay, and Samsung Pay.
CIT Bank Products
CIT Bank offers a variety of products to help you meet different financial goals. Here’s an overview of each of its current offerings.
Checking Accounts
You can open the CIT Bank eChecking account with as little as $100. It’s unique in that it offers interest on your balance. To earn as much interest as possible, you’ll need to keep at least $25,000 in your account.
As an online checking account holder, you’ll get a debit card with chip technology and 24/7 account access. Plus, you’ll be able to deposit checks and make unlimited withdrawals with the CIT Bank mobile app. In addition, you’ll have access to Zelle, Apple Pay, and Samsung Pay. Unfortunately, the eChecking account doesn’t come with paper checks.
Savings Accounts
CIT Bank offers a few CIT Bank savings accounts you might want to explore., including the CIT Bank Savings Connect, the Savings Builder account, and Platinum Savings account. The CIT Bank Platinum Savings account provides an interest rate of up to 12 times the national average.
There are no fees and interest compounds daily so that you can earn as much as possible. All you need is $100 to open this account. This account is ideal if you’d like to meet your savings goals quickly without a lot of effort.
With the CIT Savings Connect account, you can reap the benefits of a great interest rate and enjoy easy access to your funds. Several noteworthy perks of the Savings Connect include an interest rate of up to 11 times the national average, online banking and mobile banking, remote check deposit, and no monthly service fees.
The CIT Savings Builder is a two-tiered CIT savings account with an interest rate that’s twice the national average. As long as you make at least one $100 deposit per month or maintain a balance of $25,000 or more, you can earn a competitive rate on it. Since the Saving Builder account earns daily compounding interest, you’ll be able to maximize your earning potential. Just like the other CIT saving accounts, the Savings Builder doesn’t have any account opening or maintenance fees.
CIT Money Market Account
The CIT Bank money market account is the way to go if your ultimate goal is to grow your savings and stash your emergency fund. With a minimum opening deposit of $100, you can earn more than two times the national average.
In addition, there is no monthly service fee and you can deposit checks and transfer money using the CIT Bank mobile app. In addition, you’ll be able to earn twice the national average. Just like with the other accounts, you may only make six transactions per statement cycle and can deposit checks and make transfers with the CIT mobile banking app.
CDs
Certificates of Deposit (CDs) might be worth exploring if you like the idea of guaranteed returns. CIT offers several types of CDs, including:
Term CDs: Term CDs are traditional CDs that are widely seen at other banks and range from six months to 60 months. With a term CD, you can lock in an interest rate for a certain time period, regardless of what happens to the market. The longer term you choose, the more interest you’ll earn. You’ll need at least $1,000 to open a term CD.
No-Penalty CDs: Most CDs require you to lock up your money for a set period of time. If you’d like to access it before, you’ll have to pay a penalty. A no-penalty CD is exactly what it sounds like: a CD that doesn’t charge a penalty if you withdraw funds before your term is up. It requires a $1,000 minimum opening deposit and you may be able to access your money after seven days.
Jumbo CDs: If you have a lot of cash saved up, a jumbo CD might make sense. It requires $100,000 to open and doesn’t come with any account opening or monthly maintenance fees. Its terms range from two to five years and the longer you keep your money in one, the higher rate you can lock in.
RampUp CDs: RampUp CDs are for current CIT Bank customers with CDs. With a RampUp CD, you can increase your rate one time during your term if CIT Bank raises rates after you have already opened your account. You’ll need to reach out to CIT Bank directly to learn more about what type of rate you might qualify for.
Custodial Accounts
Custodial accounts are opened under the Uniform Transfers to Minors Act (UTMA). If you have a child under 18, a CIT custodial account can help you save money for their future. You’ll serve as the custodian and have complete control of the account until your child turns 18 or a later age that you designate.
You can contribute as much money as you’d like and may not have to pay federal taxes on part of the earnings. With a custodial account, your child may enjoy money for college, a vehicle, home down payment, and other expenses that can steer them toward a bright future.
Home Loans
CIT Loans does offer mortgages but you have to submit your contact information on its website to start the process and learn more about your options. You’ll need to state the value of the home you’re interested in, your desired loan amount, your zip code, and your credit score range. If you already bank with CIT, you may be eligible for two relationship discounts that lead to a lower rate.
Ten percent of your balance in a CIT bank account may give you 0.1% off your rate. If you keep 25% of your balance in a qualifying cit bank savings account, you might lock in a 0.2% discount. Since the CIT website has limited information about its mortgages online, it’s a good idea to fill out the form and request further details.
CIT Bank Fees
As we mentioned above, CIT Bank doesn’t charge any opening fees or monthly maintenance fees. Also, you can open most accounts with only $100. The bank won’t charge any domestic ATM fees and will reimburse you up to $30 per month for any fees you incur for using other ATMs. If you use an international ATM, however, CIT Bank will charge a monthly fee of 1% plus the fee imposed by the ATM provider. Other fees you should be aware of include:
Debit card replacement fee: 100
Overdraft fee: $30
Returned deposit fee: $10
Bill stop payment fee: $30
Outgoing wire transfer fee: $10
CIT Mobile App
With the CIT mobile banking app, you can bank on the go from just about anywhere. The mobile app is versatile so you can use it to log into our accounts via a password or fingerprint. You can also transfer funds between CIT accounts and an external bank account and take a photo to deposit checks.
Plus, the app allows you to check your balances and transaction history, send and receive money via Zelle, and make secure payments with Samsung Pay and Apple Pay. If you’d like, you can sign up for text banking, which will give you the chance to check your account balances and transactions through text. Many reviewers state that the CIT mobile app is very intuitive so you shouldn’t have any trouble using it, even if you don’t consider yourself tech savvy.
CIT Bank Reputation
Before you go ahead and open a CIT Bank account, you might want to know about its reputation. It has an A- rating on the Better Business Bureau (BBB). On TrustPilot, CIT earned 2.3 out of 5 stars due to negative customer reviews.
Most of the negative reviews have to do with poor customer service and difficulty opening deposit accounts. The majority of the five-star reviews praise CIT for a convenient banking experience and fast response times from the customer service team. You can always try out CIT Bank and move on to another financial institution if you’re unsatisfied for any reason.
How to Access Your Money
Even though there are no physical branches, CIT Bank makes it easy to fund your account and withdraw money.
Deposits
You can fund your account through these methods.
Mobile app: With the mobile app, you can deposit checks and make transfers quickly and conveniently.
ACH transfer: The simplest way to fund your account is to transfer funds electronically from your external bank accounts. Note that it may take up to two business days for the money to show up.
Check: You can mail a physical check to CIT Bank.
Wire transfer: CIT Bank accepts funds via wire transfer.
Withdrawals
Here’s how you can make withdrawals:
CIT Savings Connect: The CIT Savings Connect allows you to make up to six withdrawals or transfers per statement cycle. Keep in mind that any withdrawal and transfer requests you submit via mail don’t count toward this limit. The same goes for telephone requested withdrawals and transfers.
ACH transfer: Free ACH transfers between your account and an external bank account are available.
Check: You can call CIT and ask them to mail you a check without paying a fee.
How to Get Started
To open an account with CIT Bank, visit their website and click the green “Open Account” button on the home page. You can complete the application in 5 minutes or less. Be prepared to provide the following information:
Your home address
Your phone number
Your email address
Your Social Security number
You’ll also need to fund your new account. You can transfer funds from an external checking or savings account, wire funds to your new account, or mail a check to the following address: CIT Bank, N.A. Attn: Deposit Services, P.O. Box 7056, Pasadena, CA 91109.
Lastly, CIT will make two test micro-deposit to your account. You’ll receive an email within three business days that asks you to verify them. The bank will process your transaction as soon as you do.
CIT Bank Alternatives
While CIT Bank offers a lot of benefits, it’s not right for everyone. If you decide CIT isn’t the best choice for your unique needs and preferences, consider these alternative options. Some are online banks while others are traditional financial institutions with brick and mortar locations.
Ally Bank
Like CIT Bank, Ally Bank is an online only bank that offers low fees and high rates. Its product lineup includes checking accounts, savings accounts, CDs, credit cards, mortgages, car loans, personal loans, and retirement accounts. Perhaps the greatest benefit of Ally Bank is that it doesn’t charge any fees.
Capital One
Capital One has approximately 300 branches in select states and more than 50 Capital One Cafes that allow customers to open accounts, deposit cash and checks, and hang out. It also offers no-fee access to more than 70,000 ATMs and attractive rates on savings accounts and CDs. This bank might make sense if you want competitive rates but prefer the option of an in-person banking experience that is not available with CIT.
Chime
Chime isn’t a traditional bank or online bank like CIT. It’s a mobile banking app that provides banking services through Bancorp Bank, N.A. and Stride Bank. The Chime checking account comes with exciting perks like automated savings tools, early direct deposits and free access to over 60,000 fee free ATMs across the country. The Chime high yield savings account is also a solid choice thanks to its competitive interest rate and lack of monthly fees as well as minimum balance requirements.
Citibank
Citibank sounds like CIT Bank but is one of the largest banks in the world. It has hundreds of locations in the U.S. and thousands overseas. If you frequently travel abroad for business or pleasure and want access to branches and ATMs, it should be on your radar. It offers a plethora of accounts but they do come with fees. The good news is many of the fees can be waived if you meet certain balance or direct deposit requirements.
Discover Bank
When most people think of Discover, credit cards come to mind first. But Discover is actually an online bank that’s similar to CIT Bank. Its plethora of products include checking and savings accounts, personal loans, student loans, home equity loans, and mortgage refinancing. Discover also offers cash back on debit card purchases and, of course, credit cards with various rewards.
PNC Bank
PNC Bank is a traditional bank with brick and mortar locations. Some of its most popular products are the PNC Standard Savings account and Virtual Wallet, which combines a traditional checking and savings account. PNC also offers numerous CDs and free budgeting tools. It offers online banking, like CIT Bank, plus a robust mobile app.
Huntington Bank
Huntington Bank is a leading bank in the Midwest with branches in states like Ohio, Michigan, and Indiana. It provides checking and savings accounts, personal loans, auto loans, mortgages, credit cards, insurance, and investment options. Other perks include a 24-hour grace period, all day deposits, and online bill pay. You can download the Huntington app and bank on the go, like you’d be able to with CIT.
Bank of America
Known as one of the largest banks in the country, Bank of America has more than 6,000 locations throughout the U.S. Just like CIT Bank, it has a highly rated mobile banking app. In addition to checking and savings accounts, it has a Preferred Rewards program, which comes with perks like higher interest rates, waived fees, and cash back for certain transactions.
TD Bank
TD Bank has a strong presence in the Eastern part of the U.S. It offers many of the same products as CIT, such as personal checking accounts, personal savings accounts, and mortgages accounts. TD stands out for its generous bonuses and minimal fees. We can’t forget its intuitive mobile app, which makes it a breeze to bank on the go.
Citizens Bank
Citizens Bank is a national bank with locations in the New England, Mid-Atlantic and Midwest regions. Just like CIT Bank, it doesn’t charge monthly maintenance fees as long as you meet specific criteria, like making one deposit per month.
Additionally, many accounts are free of minimum balance requirements. In addition, Citizen offers the Peace of Mind overdraft protection program which will send you an alert if you overdraft your account. Other perks include an overdraft fee grace period and early paycheck deposit and early paycheck deposit.
Bottom Line
If you feel comfortable with online banking and would like to take advantage of the best annual percentage yield APY available, CIT Bank is a great choice. You’ll enjoy access to a plethora of products and watch your money work for you. While you won’t get to bank in-person, you can perform pretty much any banking task online or on your mobile phone via the CIT banking app.
CIT Bank FAQs
What types of products does CIT Bank offer?
CIT Bank offers deposit accounts, like checking accounts, high yield savings accounts, and money market accounts. It also provides CDs and home loans.
Who is CIT Bank for?
CIT Bank is a good fit if you’re looking for an online bank with high interest rates and low fees. You’ll be able to open and manage CIT Bank’s savings accounts and checking accounts from the comfort of your own home. If you prefer a traditional bank with physical locations, you might want to explore other options, like Bank of America, PNC Bank, and Huntington Bank.
Is CIT Bank FDIC insured?
Yes, CIT Bank is insured by the Federal Deposit Insurance Corporation. This means that if the bank fails for any reason, the federal government will protect your money up to $250,000 per depositor. The FDIC insurance can give you the peace of mind of knowing your money will be safe and sound, regardless of what happens to CIT.
Do I need a lot of money to open a CIT Bank account?
Each CIT account has its own requirements. However, many of its deposit accounts can be opened with as little as $100. This is great news if you’d like to start your savings journey but don’t have a lot of cash at your disposal.
Is it safe to bank with CIT?
CIT makes security a top priority. If you open an account with the bank, it will be protected with safety measures like antivirus protection, SSL encryption, firewalls, and account monitoring. With CIT, you don’t have to be skeptical about entering your personal information.
Is CIT Bank legitimate?
CIT Bank is a division of First Citizens Bank, which dates back to the 1800s. Plus it’s FDIC-insured.
Where can I go to find CIT Bank’s routing number?
Log into your online account to find your CIT Bank routing number. For online-only accounts, this number is 124084834.
Does CIT Bank have physical branches?
CIT Bank is a digital bank. This means there are no branches and you must do all your banking on your laptop, computer, or mobile device. Many reviewers state that the CIT website and mobile app are very easy to use so you don’t have to worry about a learning curve.
Is CIT Bank compatible with Zelle?
Yes. You can use Zelle to quickly send and receive money through the CIT Bank mobile app. Fortunately, you won’t have to pay any fees to do so as Zelle is free to use.
Should I open an account with CIT Bank?
You might benefit from a CIT Bank account if you’re looking for a financial institution that offers high interest rates and low fees. However, you should feel comfortable with online and mobile banking as you won’t be able to step into a local branch to deposit a check or ask a question.
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Highlights
Private banks provide personalized financial services for affluent individuals.
These bankers work in teams of lending, financial planning, and wealth management professionals and sometimes outside specialists.
Clients typically enjoy benefits you can’t get at retail banks, such as discounted loan rates and access to alternative investments.
Private banking also has some downsides, including limited choice in potentially higher costs.
In the era of online banking and mobile financial technology apps that all but replace traditional bank accounts, the idea of a human banker feels downright quaint.
Yet human bankers still play an important role in the banking ecosystem. They’re especially important for affluent people with extensive assets and complex financial needs. Many of these folks use human-led private banking services that come with bespoke wealth management, tax planning, trust and estate planning, lending, and access to financial products and investment opportunities unavailable to the rest of us.
Private banking isn’t for everyone. But you don’t have to be a multimillionaire to take advantage of it, either.
What Is Private Banking?
Private banks provide customized financial products and services for wealthy people. Private banking encompasses multiple aspects of clients’ financial lives, including traditional bank accounts, investment accounts, insurance, tax management, and estate planning.
Some banks’ wealth management divisions provide the same scope of services as others’ private banking divisions. However, wealth management more often refers to a narrower set of services focused on managing clients’ investments. That said, financial institutions sometimes use the terms “private banking” and “wealth management” interchangeably.
How Private Banking Works
Private bankers work individually or in teams, usually within much larger financial institutions that also operate retail banks and investment management firms. Private banking teams can include lending specialists, investment managers, alternative investment specialists, and bankers who specialize in managing complex financial situations.
Many private banking teams or the wealth management teams housed within them operate as fiduciaries. That means they’re legally obligated to act in their clients’ best interests, which extends to recommending investments they believe are the best fit for their clients (rather than the most profitable for the institution). Before signing with a private bank, ask if its team acts in a fiduciary capacity, and reconsider if the answer is no.
Even if the client has access to multiple financial professionals on a private banking team, one banker typically serves as the main point of contact for all financial matters covered by the private banking agreement. This person is often referred to as the client’s relationship manager.
For help with more specialized client needs, such as tax and estate planning, the relationship manager or others on the team may coordinate with outside lawyers or accountants.
Private banking clients may get discounted pricing on loans and lines of credit, bank accounts, safe deposit boxes, investment products, and possibly other financial products and services. They may also get higher interest rates on interest-bearing checking accounts, savings accounts, and CDs.
To cover ongoing services like investment and cash account management, private banking clients typically pay a percentage of the assets the bank is managing, aka assets under management. If the bank charges it in place of all other fees, it’s known as a wrap fee.
Private banks’ asset management fees typically range from 0.5% to 1.5% of assets under management and often decline as total investable assets increase. Wrap fees may be a bit higher because they encompass the institution’s entire range of services.
Private Banking Services
Private banks cater to high-net-worth people. Some also cater to a broader group of clients known as “emerging affluents,” who are typically younger, high-income people poised to build significant wealth.
Depending on the institution and the mix of clients they serve, private banking teams provide some or all of these services:
Core banking services. Private banks always fill core banking functions. Like retail banks, they offer checking and savings accounts, CDs, money market accounts, and other types of deposit accounts. Often, they pay higher interest rates than retail banks, though typically not on par with the best online banks.
Higher FDIC insurance limits. Retail banks’ FDIC coverage is typically limited to the FDIC’s minimum of $250,000. That’s inconvenient if it would cause you to open multiple accounts to have all your money insured. So private banks often (though not always) provide deposit insurance above the standard.
Budget and expense management. Particularly when working with very wealthy clients and those with complex financial situations, private bankers help with daily tasks like paying bills and managing household budgets.
General lending. Lending specialists help clients secure common loans and lines of credit like mortgages, auto loans, and unsecured personal loans with lower rates than retail banking clients have access to. That’s important because on a million- or multimillion-dollar mortgage, shaving even a few hundredths of a point off the interest rate can save you tens of thousands of dollars over the life of the loan.
Specialized lending. Private banking teams also help clients secure less common types of credit retail banking clients can’t access, like jumbo mortgages and lines of credit secured by business assets.
Financial planning. Private banking teams may include or work with certified financial planners who draw up long-range plans covering major life events.
High-value insurance. They may also coordinate with outside insurance brokers to procure high-value life, property, and liability insurance coverage.
Investment management. Private banking teams either directly manage clients’ investment accounts or coordinate with wealth management teams employed by the same financial institution. Wealthier private banking clients may have access to alternative or specialized investments unavailable to the general public, such as syndicated real estate deals that can return well above historical stock market averages, though not without considerable risk.
Tax planning. Private banking teams may refer clients to outside or in-house tax professionals who can help them reduce their tax liability within the bounds of the law.
Estate planning. Private banking clients may get access to estate planning attorneys who can draw up customized wills and trusts to reduce probate costs and ensure smooth asset transfers from one generation to the next.
Each financial institution has its own unique approach to private banking and may offer different mixes of services. And some peripheral services, like tax and estate planning, may involve out-of-pocket fees. Before opening accounts with a private banking team and moving your life savings, ask exactly what it can do for you and how much it costs.
Eligibility for Private Banking
Every financial institution sets a minimum asset threshold it requires to qualify for its private banking services. Some institutions make exceptions to their asset requirements on a case-by-case basis, but the easiest way to qualify for private banking is to exceed the threshold.
Private banking asset thresholds can range from as little as $50,000 or $100,000 to more than $2 million. Many private banks set the threshold at $1 million in investable assets, including cash held in deposit accounts and cash or securities held in investment accounts. Funds held in tax-advantaged retirement accounts typically count toward the asset threshold but less liquid assets like real estate don’t.
Some private banks have multiple service tiers that also depend on investable assets. For example, clients with less than $1 million in investable assets might qualify for a relatively basic set of private banking services without a dedicated relationship manager. Clients with between $1 million and $5 million might get a higher level of service and personalization along with a dedicated relationship manager. And clients with more than $5 million might qualify for the bank’s highest level of service and personalization.
Pros & Cons of Private Banking
Private banking has some clear upsides it’s difficult to argue with. But it has some hidden downsides as well and definitely isn’t right for everyone who qualifies.
Personalized financial services
Access to alternative investments
Dedicated teams
Wide breadth of financial and legal expertise
Preferential loan and account pricing
Choice can be limited
Pricing isn’t always the best
May put their interests ahead of yours
Can be surprisingly expensive
Potential for staff turnover
Relationship managers aren’t experts
Pros
Private banking offers a level of personalization and access that retail banks and DIY brokerages can’t match. It’s an excellent fit for affluent (or downright wealthy) individuals and families who don’t have the time or interest to directly manage every aspect of their complex financial lives.
Personalized financial services. Private banking clients enjoy personalized financial plans and customized financial services not available to retail banking or DIY brokerage clients.
Access to alternative investments. Some private banks offer alternative investments, such as direct exposure to specific real estate developments, that aren’t available to the general public.
Dedicated teams. Private banking clients have on-demand access to a dedicated relationship manager, possibly along with other members of their private banking team.
Access to multiple financial and legal experts under one roof. Private banking teams typically have or work closely with financial planners, wealth managers, tax professionals, estate planners, and other experts. It’s much more convenient than seeking out each professional individually.
Better pricing on loans and deposit accounts. Private banking clients usually get preferential rates on loans and interest-bearing deposit accounts. These rates aren’t guaranteed to be the best on the market but are generally better than what the institution’s retail banking clients get.
Cons
Private banking clients are captive to a single financial institution, reducing their ability to shop around for better deals and potentially increasing their all-in costs. And though private banks hold team members to basic professional standards, they’re not always world-class.
Potentially limited choice of products and services. At many private banks, you have access to a financial product and service menu that’s a mile wide and an inch deep. You can’t shop around for the best home loan rates or the highest savings yield; you’re limited to whatever your financial institution offers.
Preferential pricing could still be worse than the alternatives. Preferential pricing doesn’t mean the best available pricing. As with your menu of available products and services, you’re at the institution’s mercy.
Private banks may not be fiduciaries. Every private bank pays lip service to putting their clients’ interests before their own, but that’s meaningless unless the bank’s investment management division follows the fiduciary standard. If not, they may recommend investments and other financial products with an eye to maximizing their own profits rather than growing clients’ wealth.
Can be surprisingly expensive. Compared with commission-free online brokerages and free checking accounts, private banks can be expensive. If your private bank offers wealth management, expect to pay at least 1% of assets under management each year. Robo-advisors are cheaper and typically offer comparable returns, so they make more sense if you’re comfortable using them.
Private banking staff comes and goes. Like anywhere else, staff turnover is a thing at private banks. It’s often surprisingly brisk, as private banking teams often employ relatively junior employees who see the role as a stepping-stone to bigger and better things. This is the case at retail banks as well, but private banking clients tend to have more complex financial needs and expect a higher level of service, so turnover can be more disruptive.
Relationship managers aren’t experts. Private bank relationship managers are generalists, not experts. They serve as gatekeepers for legitimate experts, but you may find that they can’t give detailed advice or answer complicated questions to your satisfaction.
Do You Need a Private Bank?
You don’t need a private bank just because you have $1 million or more in liquid assets. If you’re a seasoned DIY investor and have the time to manage your money on your own, you might not need help from any financial professionals at all.
On the other hand, if you’re not a confident investor or financial manager and don’t have the time or interest to learn, private banking could make sense for you. Specifically, it could be a good fit if:
You have an existing positive banking relationship. If your current financial institution has a private division and you already have most of your money there, moving to its private side is clearly the most convenient option. But you should always look at other options.
You’re uncomfortable managing your own investments. One of the biggest benefits of private banking is access to an investment manager who can build a diversified, risk-appropriate portfolio for you.
You don’t trust a robo-advisor. Robo-advisors can make quality investment decisions — even tax-loss harvesting. But they don’t consider the full picture of wealth management or your taxes like a human investment manager can, which is more important (and complex) the more money you have.
You have or anticipate complex borrowing needs. If you’re planning to buy a million-dollar home or borrow against business assets, you may need customized solutions your retail bank can’t offer.
You need to get your affairs in order. If you’re ready to put together a long-term financial plan, set up an estate plan, and get serious about reducing your tax liability, a private banker can handle the details more efficiently than you can on your own.
Private Banking FAQs
The idea of private banking is simple enough, but novices can get bogged down in the details. These are answers to some of the most frequently asked questions about it.
Is Private Banking Only for Rich People?
It depends on your definition of “rich,” but the short answer is no. Some private banks accept clients with as little as $50,000 in liquid assets. Chase Private Client, which offers a full range of financial services, requires $150,000 in liquid assets.
That said, many private banks set the asset floor at $1 million, which meets any reasonable definition of “rich.” And some banks have multiple relationship tiers that reserve the highest levels of service and choicest financial benefits for clients with more than $5 million or even $10 million.
How Do You Qualify for a Private Banking Relationship?
The easiest way to qualify is to meet the bank’s asset minimum. An entry-level private banking relationship could be yours for as little as $50,000 to $100,000, though many banks require much more.
Some private banks make exceptions to their asset thresholds for young, high-income “emerging affluents” expected to amass considerable wealth in the near future.
What Is Private Banking vs. Wealth Management?
Private banking and wealth management are often used interchangeably and can mean different things to different people.
Some define private banking narrowly, as only core deposit and lending services, but the more common definition is broader and encompasses investment management, financial planning, tax and estate planning, and risk management.
Wealth management is narrower but still quite broad, encompassing wealth management and long-range planning. The difference is that wealth management excludes the deposit and lending services at the heart of private banking.
How Should You Choose a Private Bank?
If you think you’re ready for a private banking relationship, you should shop around. As you would if you were in the market for a new independent financial advisor, investigate several private banks that operate in your area. For each, consider:
Whether its wealth management team is sworn to act in clients’ best interests (called a “fiduciary duty”)
What financial services it offers and how those services change depending on assets under management
How much you pay for those services
The minimum assets required to qualify for a relationship
Whether you have a dedicated relationship manager
How much access you have to your relationship manager and others on the private banking team
It’s especially important to understand how much you can expect to pay your private bank and whether the team members have a fiduciary duty to you. Be very cautious about working with non-fiduciaries or with private banks that are significantly more expensive than the competition, even if they claim to offer more or better service.
Final Word
Most Americans don’t have $1 million sitting in the bank waiting for white-glove management. Most don’t have $150,000, for that matter. And not everyone who does is a good fit for private banking, anyway. Some are perfectly capable of managing complex financial situations on their own — they might even prefer to.
But while private banking isn’t exactly mainstream — which would defeat the purpose — it’s an important component of the broader financial system.
For better or worse, a disproportionate amount of American wealth is controlled by individuals and families who easily qualify for private banking relationships, and many of those folks take full advantage. It’s helpful to understand how they stand to benefit and the tradeoffs they accept in return.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
With record low unemployment and a reasonable cost of living, Ohio packs plenty of amenities for residents. But if you live in Ohio, the large number of FDIC-insured banks can make it tough to choose just one. To help, we’ve pulled together a list of local, national, online, and regional banks operating in the state.
10 Best Banks in Ohio
The best checking accounts in Ohio offer the amenities you need, while also reducing fees. Most banks offer features like mobile check deposits and ATM access, but in-person customer service and access to branches can also make a difference. All the banks listed below are worth considering for their low-fee banking services, whether you’re in Cleveland, Columbus, or one of the many other great Ohio cities.
1. KeyBank
If you’re looking for an Ohio bank that provides a personal banking experience, KeyBank might have everything you need. The standard checking account comes without fees or balance requirements.
The best APY comes with its money market savings account option, which pays up to 5.00% APY. The bank operates branches and ATMs throughout Ohio, and you’ll get expanded ATM access at Allpoint ATMs nationwide.
Fees:
No monthly fees
$20 fee for overdrafts
Balance requirements:
$10 opening deposit required
No minimum daily balance
ATMs:
Fee-free at KeyBank ATMs
Fee-free at Allpoint ATMs nationwide
$3 fee for out-of-network ATM transactions
Interest on balance:
Up to 5.00% APY on money market savings accounts
Up to 4.74% APY on CDs
Additional perks:
2. Huntington National Bank
Huntington National Bank has branches throughout the Midwest, but its headquarters is in Columbus. That gives the bank a strong presence throughout the state, with a bank branch in Columbus, Cleveland, and the Akron areas.
Huntington Bank has a fee-free checking account that even waives fees on overdrafts up to $50. But one of the biggest selling points for Huntington Bank is its interest rates. The 0.06% APY on savings accounts and 5.13% APY on CDs is better than average, particularly for traditional banks.
Fees:
No monthly fees
$15 (waived up to $50)
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at more than 1,700 ATMs nationwide
$3.50 out-of-network ATM fee
Interest on balance:
Up to 0.06% APY on savings accounts
Up to 5.13% APY on CDs
Up to 4.18% APY on money market accounts
Additional perks:
Standby Cash serves as an automatic line of credit
Early access to paycheck with direct deposit
3. Chime
Chime is an online banking platform open to consumers throughout the U.S. Ohio residents looking for banking services will get all the basic amenities through Chime’s app. You get mobile check deposit, funds transfers, and a Visa debit card. Like many other online banking options, Chime also gives you cash access through partnerships with ATM providers and retailers nationwide.
Fees:
No fees
No fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 fee for out-of-network ATM transactions
Interest on balance:
2.00% APY on savings accounts
Additional perks:
4. Wright Patt Credit Union
Credit unions have competitive rates and perks, but they also come with membership requirements. Wright Patt Credit Union is open to anyone who lives, works, worships, or attends school in 20 Ohio counties.
You’ll have fee-free ATM access at WPCU ATMs throughout Southwest and Central Ohio, as well as through CO-OP ATMs nationwide. But one of the biggest selling points is WPCU’s interest rates. Currently, they’re paying 7.00% APY on the first $1,000 in your savings account.
Fees:
No monthly service fees
$9 fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at WPCU ATMs
Fee-free at CO-OP ATMs nationwide
No fee for out-of-network ATM transactions
Interest on balance:
Up to 7.00% APY on savings accounts
Up to 4.85% APY on CDs
3.30% APY on money market accounts
Additional perks:
WPCU Sunshine Community Fund supports local nonprofits
Competitive rates on personal loans
5. Chase Bank
Chase is a national bank with locations across Ohio. The Chase Total Checking Account comes with a $12 monthly fee. However, Chase waives it if you have direct deposits of $500 or more each month, keep at least a $1,500 daily balance, or maintain a $5,000 minimum balance across all your Chase accounts.
For younger costumers, take a look at the Chase Student Checking Account, which is designed for students between the ages of 18 and 24.
Fees:
$12 monthly fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at 16,000+ Chase Bank ATMs
$3-$5 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$100 checking account bonus
Credit cards offer bonuses and general rewards
6. Woodforest National Bank
Woodforest National Bank is a community bank with branches in Ohio, Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
The basic checking account comes with a $6.95 fee, but Woodforest waives it with monthly direct deposit or a daily balance of at least $100.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$32 overdraft fee
Balance requirements:
$25 deposit to open
No minimum daily balance
ATMs:
Fee-free at Woodforest National Bank ATMs
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.50% APY on savings account balances
Up to 4.60% APY on CDs
Additional perks:
7. Fifth Third Bank
Headquartered in Cincinnati, Fifth Third Bank is one of the top regional banks in Ohio. You’ll get fee-free ATM access not only at Fifth Third ATMs but also at more than 40,000 partner ATMs nationwide. Fifth Third Momentum Checking comes with no monthly maintenance fees, and you can avoid overdraft fees by depositing enough money to cover the overage by midnight the next business day.
Fees:
No monthly service fees
$37 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at 1,500+ Fifth Third Bank ATMs
Fee-free at 40,000+ partner ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
0.01% APY on savings account balances
Up to 4.75% APY on CDs
Additional perks:
Early access to your paycheck
Extra business day to resolve overdrafts
8. GO2bank
If you haven’t checked into online banks lately, you might have missed how far they’ve come. Not only are their interest rates and fees competitive with most traditional banks, they also offer features that make it easy to skip the bank branch experience. GO2bank offers nationwide access to cash at Allpoint ATMs, as well as cash deposits at more than 90,000 retailers.
Fees:
$5 monthly maintenance fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings account balances
Additional perks:
Up to 7% cash back on gift card purchases
Deposit cash at 90,000+ retailers nationwide
9. Quontic Bank
Another online banking option is Quontic Bank, which began as a community bank in New York City in 2009. Quontic has a wider range of cash withdrawal options than most banks, thanks to partnerships with Allpoint, MoneyPass, and Citibank. But one feature that sets this bank apart is its mortgage loan program.
Quontic has been designated by the U.S. Treasury as a Community Development Financial Institution (CDFI), which allows it to issue loans to borrowers who fall outside the requirements for a conventional home loan.
Fees:
No monthly fee
No fees for overdrafts
Balance requirements:
$100 opening deposit
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
Fee-free at MoneyPass ATMs
Fee-free at SUM Program ATMs
Fee-free at select Citibank ATMs
Interest on balance:
Up to 1.10% APY on checking account balances
4.25% APY on savings accounts
Up to 5.15% APY on CDs
Up to 4.75% APY on money markets
Additional perks:
CDFI lending makes mortgage loans available to a wider range of applicants
Free contactless Quontic ring wearable with new checking account
10. Civista Bank
Local banks have plenty to offer, including a competitive annual percentage yield and personalized customer service. Civista Bank has branches in Northern, Northwestern, Central, and Southwestern Ohio, as well as Southeastern Indiana and Northern Kentucky. If you travel often, though, be aware that fee-free ATM transactions are limited to the service area.
Fees:
No monthly fee
$37 overdraft fee
Balance requirements:
$50 opening deposit
No minimum daily balance
ATMs:
Fee-free at Civista ATMs nationwide
$4.50 fee for out-of-network ATM transactions
Interest on balance:
Rates not publicly disclosed
Additional perks:
Bottom Line
With so many Ohio banks, the options can be overwhelming. It can help to narrow down the features you need. From personalized banking services to help with investment accounts, choosing a bank account is a personal decision. Compare rates and features between financial institutions until you find the right bank to meet your needs.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Most checking accounts pay no interest on balances. They cede that perk to savings accounts, which are designed to hold funds you don’t need to pay this month’s bills.
Interest checking accounts are different. Though they rarely yield as much as high-yield savings accounts, they make it worth your while to keep a checking cushion.
Ally Interest Checking is one such account. It has a bunch of other notable perks that make it more than suitable for everyday use as your primary checking account too. Read on to see if those outweigh its downsides.
What Is Ally Interest Checking?
Also known as the Ally Spending account, Ally Interest Checking is a free checking account that yields 0.10% APY on balances up to $15,000 and 0.25% APY on balances above that amount.
Ally Bank is an online-only bank with no branches, but Ally Interest Checking has more than 43,000 fee-free ATMs in its network and a robust mobile app that can replace the in-person banking experience for the vast majority of users. Other notable account features include built-in spending buckets that can help with budgeting, two layers of overdraft protection with no out-of-pocket fees, and an early direct deposit feature that can get you paid up to two days early.
Ally Interest Checking is one of several Ally Bank deposit accounts. The bank also has a high-yield savings account, money market account, and several different CDs. Other Ally financial accounts and services include a commission-free online brokerage, an auto lending department, and a home loan department that makes primary and secondary home loans.
What Sets Ally Interest Checking Apart?
Ally Interest Checking stands out from similar checking accounts for several reasons:
Overdraft protection with no fees. Ally Bank offers two layers of overdraft protection. Neither charge any fees; the bank eliminated overdraft fees entirely in 2021. That’s quite rare in the banking industry.
Big fee-free ATM network for an online bank. Ally Interest Checking has more than 40,000 fee-free ATMs in its network. You can find them all over the United States, so it shouldn’t matter too much where you live or travel.
Spending buckets for easy budgeting. You can create up to 30 spending buckets to categorize your monthly expenses. All bucketed funds remain in your checking account, but the buckets help you budget and see where you’re spending too much.
Powerful mobile app. The Ally Bank app is better than the average mobile banking app. With a fast, easy-to-use interface and clutch features like mobile check deposit and rapid person-to-person payments, it easily stands in for Ally’s standard online banking dashboard when you’re on the go.
Key Features of Ally Interest Checking
Ally Interest Checking has all the features you’d expect from a full-service online bank, plus some legitimately notable perks not found everywhere else.
Account Fees & Minimums
This account has no monthly or annual maintenance fee. There’s no minimum opening deposit and no ongoing minimum balance requirement either.
Account Yield
Ally Interest Checking has a two-tiered yield system. The yield is 0.10% APY on balances up to $15,000 and 0.25% APY on balances above that amount.
ATM Access
Ally Interest Checking has more than 43,000 fee-free ATMs in its network. You can withdraw cash without a surcharge anywhere you see the Allpoint logo.
Spending Buckets
Ally Interest Checking allows you to create up to 30 individual spending buckets to manage distinct pools of cash within your account. You can use the buckets for anything you want (and customize their names accordingly), but Ally really emphasizes how useful they can be for budgeting.
You can move cash into and between buckets instantly with the Ally mobile app or online account dashboard. All bucketed funds remain in your checking account, but you can choose which buckets to pull from for external transfers or bill payments.
Overdraft Protection
Ally Interest Checking has two overlapping layers of overdraft protection. Neither has any fees:
Overdraft Transfer Service: This feature pulls from a linked Ally Bank savings account to cover negative-balance transactions. Ally rounds up the transferred amount to the nearest $100, so a $75 overdraft would trigger a $100 savings transfer.
CoverDraft: This feature provides up to $250 in coverage for negative balances. Your account can remain overdrawn until the next deposit hits.
Even with complimentary overdraft protection, Ally reserves the right to decline specific transactions that would result in a negative balance and may revoke overdraft privileges if you frequently overdraw your account.
Early Direct Deposit
If your employer or government benefits provider qualifies, and most do, you can get your paycheck up to two days early with Ally Interest Checking. If your paycheck normally arrives on Friday, the money hits your account on Wednesday.
Paper Checks
You can order standard paper checks for your Ally Interest Checking account as often as you’d like with no order fees. Personalized checks may carry a design fee.
Mobile Features
Ally Bank has a comprehensive, user-friendly mobile app that can do just about anything the standard online banking interface can. It’s well-reviewed and has relatively few complaints from verified users, most centering on apparent glitches that may be user error.
Notable capabilities include:
Mobile check deposit
One-time and recurring bill payments
Person-to-person transfers through Zelle
Spending bucket management
Check reorders
Deposit Insurance
Ally Interest Checking comes with federal deposit insurance up to the standard FDIC limit of $250,000.
Pros & Cons
Ally Interest Checking has more advantages than disadvantages overall.
No maintenance fees or minimum balance requirements
No overdraft fees
Spending buckets to help with budgeting
Big fee-free ATM network
Below-average interest rate
No account opening bonus or spending rewards
No physical branches
Pros
Ally Interest Checking is almost entirely fee-free and has lots of user-friendly features.
No maintenance fees. This account has no monthly or annual maintenance fee. You pay nothing to keep your account active, no matter how much or how little you use it.
No minimums. This account has no minimum opening deposit or ongoing balance requirement. Since you don’t have to worry about keeping a certain amount in it, it’s useful as a low-balance secondary checking account.
No overdraft fees. Ally Bank charges no overdraft fees on this account. You have access to two overlapping overdraft protection plans, one that draws from your linked savings account and one that draws from deposits to the account.
Large network of fee-free ATMs. Ally Bank’s ATM network has more than 40,000 fee-free machines located in every state and major metropolitan area.
Comprehensive mobile app. Ally Bank has one of the best mobile apps of any online bank, which is pretty high praise. It’s easy to use and can replicate all the functionality of the standard online interface.
Spending buckets make it easy to manage your budget. You can set up as many as 30 spending buckets to manage recurring expenses, short-term goals, and other aspects of your household budget. It’s much easier than using a spreadsheet or third-party budgeting software.
Get paid up to two days early. Most employers and benefits providers qualify for early payday. If you normally get paid on Friday, you’ll get your paycheck on Wednesday instead.
Cons
Ally Interest Checking isn’t as generous as some competing interest checking accounts and isn’t appropriate for people who prefer in-person banking.
Lower interest than some comparable accounts. This account’s yield tops out at 0.25% APY, and you need to have at least $15,000 in the account to earn at that rate. Otherwise, your yield is just 0.10% APY. Both rates are less generous than some otherwise similar interest checking accounts.
No account opening bonus. This account has no account opening bonus for new users. Some competitors offer bonuses worth hundreds of dollars when you complete qualifying activities after sign-up.
No debit card rewards. Ally Interest Checking has no spending rewards program. You can’t earn cash back on debit card purchases with this account, as you can with many other bank accounts.
No physical branches. Ally Bank is an online-only bank with no physical branches. Its desktop and mobile interfaces are robust enough that you’ll probably never feel the need to visit a branch, but it’s not appropriate if you like having a branch network as a fallback.
How Ally Interest Checking Stacks Up
Ally Interest Checking competes against quite a few interest-bearing checking accounts. One of its closest cousins is Quontic High Interest Checking. Before applying for either, see how they compare.
Ally Interest Checking
Quontic High Interest Checking
Maintenance Fee
$0
$0
Minimum to Open
$0
$100
Minimum Ongoing
$0
$50
Maximum Yield
0.25% APY
1.10% APY
Qualifying Activities?
Not, but maximum yield requires $15,000 daily balance
Yes, 10 debit card transactions per month
Debit Card Rewards?
No
No
ATM Network
43,000+ locations
90,000+ locations
Ally Interest Checking is a better fit for occasional users and users with low account balances, thanks to its total lack of minimum balance requirements and transaction requirements to earn interest. But Quontic High Interest Checking has a higher maximum interest rate if you’re able to clear the monthly transaction hurdle.
Final Word
Ally Interest Checking is a straightforward checking account with a decent but not really notable yield and tons of user-friendly features. If you’ve struggled to get a handle on your budget in the past, occasionally overdraw your account, or silently curse your current bank every time you open its mobile app, give it a closer look.
Just don’t expect any miracles. Ally Interest Checking is less generous than some competing accounts, so you need to decide whether the perks and usability justify the below-average return on your balances and spending.
The Verdict
Our rating
Ally Interest Checking
Ally Interest Checking is a simple checking account that’s refreshingly user-friendly. Its spending bucket feature makes it easy to get (and keep) control over your budget, and it has a relatively large fee-free ATM network for an online bank. Its mobile app is better than average too. But with a low yield and no spending rewards, it’s not as generous as it could be.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Choosing a checking account can be an overwhelming process. Between online banks operating nationwide and brick-and-mortar banks and credit unions serving your home region, there are hundreds if not thousands of legitimate institutions to choose from. Many offer more than one checking account option, sometimes several.
Not Truist. Though it’s one of the biggest banks in the United States, it offers just one main consumer checking account: Truist One Checking.
Having just one choice with Truist certainly simplifies the decision. But Truist One is a bit more complicated than your average checking account, so don’t rush to open one until you understand all its ins and outs.
What Is Truist One Checking?
Truist One Checking is a consumer checking account from Truist, formerly known as SunTrust Bank. It has a $12 monthly maintenance fee that’s relatively easy to waive with a qualifying monthly direct deposit, minimum balance, or other linked Truist accounts.
Truist One’s perks vary based on how much you have in all eligible Truist checking, savings, investment, and other qualifying accounts. As your combined balance increases or decreases, Truist automatically moves you between benefit levels. Notable perks of higher benefit levels include substantial rewards bonuses on linked Truist credit cards, ATM fee waivers, and maintenance fee waivers on linked accounts.
What Sets Truist One Checking Apart?
Truist One Checking stands out for several reasons:
Relatively easy maintenance fee waivers. You can waive this account’s monthly maintenance fee with a combined balance as low as $500 or a modest monthly direct deposit.
Legitimately valuable benefits as your combined balance increases. Once your balance exceeds $10,000, the perks really add up here.
Free, limited overdraft protection for eligible account holders. Even if you don’t have a sizable balance, you get free overdraft protection for negative balances up to $100.
No maintenance fee on your linked savings account. As long as your Truist One Checking account remains open, you pay no monthly fee on your linked Truist Savings account.
Key Features of Truist One Checking
Truist One has a standard set of checking account features, from a low minimum opening deposit requirement to a monthly maintenance fee with multiple ways to waive. However, its loyalty levels and associated benefits add some complexity.
Account Minimums
The minimum to open an account is $50. Once open, you don’t have to maintain a minimum balance, though one of the waiver options for the monthly maintenance fee involves keeping a $500 balance in eligible Truist accounts.
Account Fees & Waiver Requirements
Truist One has a $12 monthly maintenance fee. There are five ways to waive it in any given statement cycle:
Receive at least $500 in qualifying direct deposits into your account
Maintain a balance of at least $500 in eligible linked Truist deposit and investment accounts as of the last business day of the statement period
Have a personal Truist credit card, loan, or mortgage, excluding Lightstream personal loans
Have a linked small-business checking account with Truist
Be a student under age 25
ATM Access
Truist has a network of about 3,000 branded ATMs offering fee-free withdrawals. Withdrawal fees and other transaction fees may apply outside this network.
Free Linked Savings Account
Truist One comes with a complimentary Truist Savings account, which normally carries a $5 monthly maintenance fee. However, this isn’t much of a benefit because Truist Savings yields basically nothing (.01% APY on all balances).
First Book of Paper Checks Free
You get a free 10-pack of paper checks when you open your Truist One account. Reorder fees depend on your loyalty level.
Overdraft Protection
Truist One comes with complimentary overdraft protection, known as Negative Balance Buffer, for negative balances up to $100. Truist generally declines transactions that would result in an overdraft greater than $100.
To qualify, your account must be open for at least 35 days, be funded and have a positive balance at the time of approval, and receive at least one direct deposit totaling $100 per month for two consecutive months. Moving forward, you must receive at least one direct deposit totaling $100 each month to remain qualified.
Loyalty Levels & Benefits
As a Truist One account holder, you’re automatically assigned to one of five benefit levels based on the total combined value of all eligible Truist accounts. Eligible accounts include checking, savings, CD, and investment accounts.
Level 1 (up to $9,999.99): This level comes with all the standard features of Truist One. Other notable benefits include a 10% rewards bonus on a linked Truist credit card spending and a $25 discount on Truist’s annual safe deposit box fee.
Level 2 ($10,000 to $24,999.99): Notable benefits include a 20% credit card rewards bonus, 50% check reorder discount, one out-of-network ATM fee reimbursement per month, and an additional Truist One checking account (which is useful if you want to set up a custodial or joint account for a minor).
Level 3 ($25,000 to $49,999.99): Notable benefits include a 30% credit card rewards bonus, free check reorders, three out-of-network ATM fee reimbursements per month, and two additional Truist One checking accounts.
Level 4 ($50,000 to $99,999.99): Perks include a 40% credit card rewards bonus, free check reorders, five out-of-network ATM fee reimbursements per month, and three additional Truist One accounts.
Level Premier ($100,000 and above): Perks include a 50% credit card rewards bonus, free check reorders, and unlimited out-of-network ATM fee reimbursements.
Mobile Features
Truist has very well-reviewed mobile apps for Android and iOS. They’re comprehensive and user-friendly, allowing you to do pretty much anything you can using Truist’s standard online dashboard. Mobile check deposit is a big plus.
Deposit Insurance
This account comes with federal deposit insurance up to the standard FDIC limit of $250,000.
Pros & Cons
Truist One Checking has some clear advantages for active users, but it’s not perfect.
Pros
Truist One Checking has some potentially valuable perks, especially if you have substantial balances across all linked Truist accounts.
Valuable benefits with higher balances. Truist One’s benefits really add up as your balance increases. If you have at least $25,000 deposited across linked Truist bank and investment accounts, Truist One is much more generous than comparable accounts.
Complimentary overdraft protection. All Truist One account holders enjoy complimentary overdraft protection for negative balances up to $100. That’s a rare perk for a big bank.
First book of paper checks free. This account comes with a free book of paper checks, an increasingly rare perk in the new paperless banking normal.
Relatively easy to waive the monthly maintenance fee. Truist One does have a monthly maintenance fee, but an abundance of reasonable waiver requirements means it’s easy for most account holders to avoid.
Cons
Truist One Checking has some notable access issues, including a relatively small ATM network and a large but highly regional branch footprint.
Small ATM network. Truist One has only a few thousand ATMs in its network, which is fewer than most banks of its size.
Branches aren’t available nationwide. Truist’s branches cluster in the eastern U.S., especially the southeast. If you live outside this area, you might have trouble banking in person.
Poor yields on linked savings account. Truist makes a big deal of its linked savings account, but you can do better with literally hundreds of other choices elsewhere.
How Truist One Checking Stacks Up
Truist One Checking has a lot in common with Chase Total Checking, another popular checking account from a well-known big bank. Before applying for either, see how the two compare.
Truist One
Chase Total Checking
Monthly Fee
$12
$12
Waiver Options
Yes, relatively easy
Yes, more difficult
ATM Network
3,000+ machines
15,000+ machines
Branches
About 2,200
About 4,600
Loyalty Levels
Yes
No
Truist One’s advantages over Chase Total Checking include its relatively easy monthly fee waiver options and its generous loyalty perks. If you have a Truist credit card and significant balances across all linked Truist accounts, Truist One is the better choice. But Chase Total Checking is superior if you’re looking for a big branch and ATM network.
Final Word
Truist One Checking is one of the better big-bank checking accounts around, thanks in large part to its easy-to-achieve monthly fee waivers. It’s also a strong choice for account holders with sizable (and growing) balances. The more you have in your linked Truist accounts, the more generous this particular account becomes.
That said, Truist One Checking isn’t the best choice for people who prefer online banking but feel like giving traditional banks another shot. For that, look to a bank with an even broader ATM and branch footprint, like Chase or Bank of America.
The Verdict
Our rating
Truist One Checking
Truist One Checking is a full-service deposit account for people who hope and expect their balances to grow over time. It’s relatively easy to waive the monthly maintenance fee, and benefits start to pile up as your combined balance passes the $10,000 mark. But Truist has some important branch and ATM access limitations to keep in mind.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Banking
5 Best Checking Accounts for Seniors – Rates for 2023
Banks don’t market checking accounts to older adults quite as vigorously as they do to students, small-business owners, or general audiences, but senior-friendly checking accounts are more common than you might imagine. Which checking accounts offer the best fit for seniors? Here are our picks.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
The rise of online and mobile banking means that the lines between checking and savings accounts are blurrier than ever. Some digital financial platforms don’t even require you to open them separately anymore.
That’s the case for SoFi Checking & Savings, which is essentially a checking and savings account in one convenient package. If you’re not satisfied with your current checking and savings accounts, or you lack one or the other entirely, SoFi Checking & Savings is definitely worth a closer look.
What Is SoFi Checking & Savings?
SoFi Checking & Savings is a digital deposit account with separate subaccounts for checking and savings balances. Both subaccounts earn interest: the checking side at 0.50% APY and the savings side at 4.40% APY.
SoFi Checking & Savings has no monthly maintenance fee or minimum balance requirements. Some debit card purchases earn cash back, though its rewards program isn’t as reliable as the best cash-back credit cards. Other notable features include an account opening bonus opportunity, early direct deposit with a qualifying payer, federal deposit insurance above the standard limit, and free coverage for smaller overdrafts.
What Sets SoFi Checking & Savings Apart?
SoFi Checking & Savings stands out from similar online deposit accounts in several ways:
Pays interest on all balances. SoFi Checking & Savings earns interest on all balances. On the checking side, the current interest rate is 0.50% APY. On the savings side, it’s 4.40% APY. That’s well above the national savings account average.
Potential for excellent cash-back returns. You can earn up to 15% cash back on eligible debit card purchases with SoFi Checking & Savings.
No-fee overdraft protection on smaller overdrafts. You pay no overdraft fees on overdrafts up to $50 as long as you have a qualifying direct deposit set up. This is a relief if you’re known to occasionally overdraw your bank account.
Deposit insurance well above the standard federal limit. This account comes with up to $2 million in federal deposit insurance, several times the standard limit of $250,000. This is excellent news for users with sizable cash cushions.
Key Features of SoFi Checking & Savings
SoFi Checking & Savings has a generous account opening bonus, a two-tiered yield on balances, a debit card cash-back program, and some other notable features.
Account Opening Bonus
If you open your first SoFi Checking & Savings account by December 31, 2023, you could qualify for an account opening bonus worth $250.
To earn the bonus, do the following:
Set up direct deposit with a qualifying payer
Receive cumulative direct deposits totaling $1,000 to $4,999 during the 25-day qualifying period to earn a $100 bonus
Receive cumulative direct deposits totaling $5,000 or more during the 25-day qualifying period to earn a $250 bonus
Account Fees & Minimums
There is no monthly maintenance fee on this account. There’s also no minimum opening deposit or ongoing balance requirement.
Account Yield
Balances held in the savings portion of this account yield 0.50% APY. Balances in the checking portion yield 4.40% APY. There’s no minimum balance to earn interest in either case.
Cash-Back Rewards
Eligible debit card purchases earn up to 15% cash back. SoFi Checking & Savings ties cash-back rewards to specific retailers rather than spending categories, so not all purchases earn rewards.
ATM Access
You can withdraw cash without incurring any fees at more than 55,000 ATMs in the Allpoint network. Out-of-network ATM withdrawals may incur third-party charges that SoFi can’t control.
Overdraft Protection
Overdrafts under $50 qualify for free overdraft protection as long as you have a qualifying direct deposit set up for your account. Larger overdrafts may incur fees or may be declined altogether at SoFi’s discretion.
Early Direct Deposit
If your employer or benefits payer qualifies, you can get your direct deposit up to two business days early (for example, Wednesday instead of the usual Friday payday).
Mobile Features
SoFi Checking & Savings is a mobile-first online bank account with excellent ratings (4.8 stars) from more than 250,000 verified iPhone users. The app itself is comprehensive and can handle basically any demands you place on the standard desktop interface, including remote check deposit, digital bill payments, peer-to-peer payments, and external funds transfers.
Deposit Insurance
This account comes with up to $2 million in deposit insurance. You’re not guaranteed to get the maximum coverage amount, and the exact amount depends on SoFi’s arrangements with its partner banks. But it’s reasonable to expect a coverage amount significantly higher than the standard FDIC limit of $250,000.
Pros & Cons
SoFi Checking & Savings has a lot to recommend it, and a few downsides too.
No monthly maintenance fee or minimum balances
Excellent savings yield
Deposit insurance well above the standard limit
Cash back on eligible purchases
Many purchases don’t earn rewards
Not a full-service bank
Limited overdraft protection
Pros
SoFi Checking & Savings is extremely low-cost and offers excellent returns on your balances. It has some potentially valuable benefits too.
No monthly maintenance fee. This account has no monthly maintenance fee. It costs nothing to keep open, no matter how much you use it or what your account balance is.
No minimums. There’s no minimum balance to open or maintain this account, so it’s useful as a secondary account without much of a balance.
High yield on savings balances. This account yields 4.40% APY on the savings side, on par with the best high-yield savings accounts on the market.
Up to $2 million in deposit insurance. SoFi Checking & Savings offers up to $2 million in federal deposit insurance, far in excess of the standard coverage limit. If you’re fortunate enough to have hundreds of thousands of dollars in the bank, this is a notable benefit.
Potential for excellent cash-back rewards. You can earn up to 15% cash back on eligible debit card purchases, though most earn much less. Still, it’s nice to get back some of what you spend.
Above-average account opening bonus opportunity. SoFi Checking & Savings delivers up to $250 as a bonus when you open your account by December 31, 2023 and receive qualifying direct deposits within the first 25 days.
Cons
SoFi Checking & Savings lacks some important features found elsewhere in the online banking space and is somewhat isolated within the larger SoFi ecosystem.
No overdraft protection over $50. With SoFi Checking & Savings, you’re on the hook for overdrafts above $50. SoFi reserves the right to decline these transactions altogether. By contrast, many banks offer overdraft protection for overdrafts in any amount.
No higher-yielding accounts at SoFi. SoFi offers lots of other financial products, including a slew of consumer loans, but it’s not a full-service bank. If you’re looking for a one-stop shop to open a CD or money market account with even higher yields, keep looking.
Many purchases don’t earn rewards. SoFi Checking & Savings’ cash-back program rewards purchases with some retailers but excludes many others. It’s less reliable than traditional cash-back programs, which reward most or all purchases.
How SoFi Checking & Savings Stacks Up
SoFi Checking & Savings is a convenient money management package that blends the best features of online checking and savings accounts. It’s unusual — but not unique. Before opening an account, see how it compares to a similar package: the Aspiration Spend & Save account.
SoFi Checking & Savings
Aspiration Spend & Save
Maintenance Fee
$0
$0 to $7.99 per month
Minimum to Open
$0
$10
Minimum Ongoing
$0
$10
Maximum Yield
4.40% APY
3.00% APY with Aspiration Plus
Qualifying Activities
Yes
Yes
Maximum Balance to Earn
Unlimited
Yes, $10,000
Spending Rewards
Up to 4.40% APY
Up to 10% cash back
SoFi Checking & Savings is superior to Aspiration Spend & Save in most respects, from the maintenance fee (none) to the minimum balance requirements (also none) to the maximum balance to earn interest (unlimited). The biggest selling point of Aspiration is that it’s intentionally sustainable — your deposits and purchases never fund fossil fuel investments and may contribute to carbon-reduction initiatives like reforestation.
Final Word
It’s difficult to find much wrong with SoFi Checking & Savings. It’s true that the rewards program has some important limitations and the overdraft protection plan isn’t as generous as some competitors, but for most people, these are drawbacks and not deal-breakers.
That said, if you’re in the market for a full-service bank that can handle all your financial needs, SoFi probably isn’t it. Fortunately, there are plenty of online banks that do fit the bill.
SoFi members with direct deposit can earn up to 4.40% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.40% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 7/11/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
The Verdict
Our rating
SoFi Checking & Savings
SoFi Checking & Savings is a two-in-one deposit account for people who enjoy earning interest and hate paying fees. With a well-above-average yield, a generous account opening bonus, and cash back on eligible purchases, it’s a very rewarding product indeed. But it’s not a full-service bank, so don’t expect it to handle all your financial needs.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
U.S. Bancorp in late May finished installing updated signage on the West Coast branches it inherited from Union Bank, but executives say their work to take full advantage of the acquisition is still under construction.
Improved cost savings and opportunities to meaningfully boost revenue should be evident in the third quarter, the first full one since U.S. Bank’s conversion of Union Bank, management said when reporting second-quarter results Wednesday.
“We are well positioned as a national bank with greater scale,” said U.S. Bank CEO Andy Cecere.
Revenue and net interest income were lower than expected in the second quarter, but strong fee income and lower expenses helped improve the Minneapolis bank’s bottom line. The quarter also reflected one-time conversion items.
“This was a noisy quarter, which reflected mixed trends,” David Rochester, director of research at Compass Point Research, wrote in a note.
The $680 billion-asset bank completed its conversion of the Union Bank system in the second quarter, marking one of the final steps in the $8 billion acquisition that yielded hundreds of new branches and millions of new customers. U.S. Bank said it would use the deal, in part, to expand its presence in key California markets including Los Angeles, San Diego and San Francisco, where Union Bank had a strong foothold.
U.S. Bank said it has seen more new customers than expected engage with the bank, making use of its app and other online banking services. The bank has boosted its advertising budget to get on the radar of new customers and potential new customers in target markets, executives said.
The deal should deliver as much as $900 million in cost savings delivered through, plus a breadth of opportunities for revenue growth, U.S. Bank said.
In the second quarter, U.S. Bank faced similar challenges to those of banks across the industry, whose net interest income generally shrank amid greater competition in deposit pricing. U.S. Bank said it expects lower net interest income in the third quarter.
U.S. Bank set aside $821 million for credit losses in the second quarter, up from $427 million in the first quarter. Large and small banks alike put aside substantial amounts of reserves early on in the pandemic in case the economic fallout prevented consumers and businesses from making payments on their bank loans.
“Credit quality metrics remained strong versus pre-pandemic levels but are normalizing as expected,” Cecere said on the company’s earnings call Wednesday. “This quarter, we strengthened our balance sheet by increasing the loan-loss reserve, reflective of our prudent approach to credit risk management.”
The bank cited growing credit card balances and continued economic uncertainty as reasons for boosting reserves. Average credit card loans increased 14.5% in the second quarter from the same quarter last year, while average total loans grew 19.9% in the second quarter.
“Consumers are now starting to rely more on credit card debt as a way of paying for their lifestyles,” said U.S. Bank Chief Financial Officer Terry Dolan.
Banks have likely seen the final positive impacts of higher interest rates, Dolan said. U.S. Bank’s noninterest income growth of 7% in the second quarter, driven by higher core fee income, exceeded analysts’ expectations.
U.S. Bank reported a profit of $1.8 billion in the second quarter, in line with expectations. Revenue totaled $7.2 billion, slightly above forecasts.
The bank said its common equity Tier 1 capital ratio increased to 9.1% in the second quarter, up from 8.5% in the first quarter. Capital ratios have been under the spotlight across the industry this year, and specifically at U.S. Bank. The bank’s capital level faced scrutiny this spring, when a research report argued the bank wasn’t holding enough capital for a bank of its size.