Whether you are a freelancer, side hustler, or run a full-time business, opening a separate business bank account should be your first move after starting your business.
A business bank account helps you keep your business finances and personal income and expenses separate. Having a business bank account for all your business finances makes it easy to run records and track your costs and deductions at tax time.
Business checking accounts can also help business owners establish credit, which they can use for net terms with suppliers or to take out business loans or business credit cards.
But which business checking account is best? And can you find good options with free business checking accounts?
12 Best Free Business Checking Accounts
We’ve done the legwork for you, compiling a list of the 12 best free business checking accounts available in the U.S. today.
1. Bluevine: Best Free Business Checking Account Overall
Bluevine offers one of the most comprehensive and best free business checking accounts you’ll find. It has no monthly maintenance fees, no overdraft fees, and an annual percentage yield APY of 2% on up to $250,000 of your balance if you meet monthly activity goals. To qualify, simply make $500 in debit card purchases with your Bluevine business debit or receive $2,500 per month in customer payments to your account.
Bluevine offers features that make it great for a team, including the ability to open multiple sub-accounts and even have separate logins for employees or contractors, like accountants and virtual assistants.
While some free business checking accounts have transaction limits, your Bluevine business checking account does not. Funds are backed by Coastal Community Bank, Member FDIC. Coastal Community Bank provides business banking services for Bluevine customers.
2. Capital One Business Bank Account: Best for Local Branches
If you’re looking for personalized service at local branches, consider Capital One business checking. Capital One offers two tiers of checking accounts: Basic and Enhanced. Both accounts offer unlimited digital transactions, free overdraft coverage, access to Capital One’s mobile app, no ATM fees at 70,000 Capital One, Allpoint, and MoneyPass ATMs, and low monthly fees that are easily waived when you meet minimum balance requirements.
Capital One Enhanced business checking is designed for larger businesses who can meet $25,000 average daily balance requirements needed to waive the $35 monthly service fee. Enjoy free incoming wire transfers, five free outgoing wire transfers monthly, and a remote scanner for mobile check deposits.
3. GO2bank: Best for Online Banking
GO2bank is a complete mobile banking solution with digital banking services provided by Green Dot Bank. The bank offers many features in its online business checking account that will appeal to business owners and their employees, including co-branded debit cards, optional overdraft protection, and a co-branded app for businesses. You can also get a secured business credit card through GO2bank.
Waive the monthly fees with qualifying direct deposits, and receive ACH payments up to two days early. You can also purchase eGift cards for yourself or as employee incentives and earn up to 7% cash back.
4. Found: Best for Freelancers
Hailed as the debit card for the self-employed, we rate Found as the best free business account for freelancers. It has no monthly maintenance fees, no minimum deposit or minimum balance requirements, and no credit check to open your account.
Found has a few features that can help you streamline your business. By evaluating your income and expenses, Found can calculate your tax bill, categorize tax write-offs, and even auto-save the correct amount from each deposit to cover your quarterly taxes. You can also send invoices from the app.
Found is a financial technology company, not a bank. Deposits are FDIC insured through Piermont Bank.
5. First Citizens Bank Basic Business Checking: Best for Checking Account Choices:
Most business checking accounts have one option for a business owner. First Citizens has four choices to help you choose the right business checking account with the features you need. The basic business checking account offers 100 transactions with no monthly fee, and has a minimum opening deposit of $100.
Business Banking I is free with a merchant account or a minimum daily balance of $25,000. It offers processing of up to $250 transactions per month, plus $10,000 in cash processing, including cash deposits. Business Banking II has similar features with 500 free transactions and $15,000 in cash processing, including cash deposits. There is a $50 monthly fee unless you have a merchant account or an average daily ledger balance of $50,000.
Business Banking III is best for larger enterprises who want choices and do a high volume of business. Process up to 750 transactions free each month, with $20,000 in cash deposits. You’ll need a merchant account or $75,000 in your average daily ledger balance to avoid the monthly maintenance fee.
Business Banking I, II, and III accounts also let you customize your plan with additional discounted services.
6. Novo Business Checking Account: Best for E-commerce and App Integrations
Novo is not a bank, it’s a financial technology company with deposits backed by Middlesex Federal Savings, Member FDIC. Novo is one of the most tech-forward financial institutions on our list, offering easy integration with apps like Shopify, Wise, Stripe, Square, and Quickbooks.
The Novo Business Checking account has no monthly fees, no minimum balance requirements, no cash deposit fees, and ATM fee reimbursement for out-of-network ATM use. Account holders can also get discounts on popular business software and services, including LegalZoom, Constant Contact, and Stripe.
7. Mercury Banking For Start-ups: Best for Start-ups
Bootstrapped and venture-backed startups of every size have unique needs in a business checking account. A Mercury free business checking account helps your money stretch further with no monthly fee, no minimum balance requirements, and no minimum deposit to open. You can earn 5.11% annual percentage yield APY with mutual funds invested through Mercury Treasury if you have an account balance of $250,000 or more.
Mercury free business checking offers unlimited free transactions, including no cash deposit fees, for businesses who process less than $200,000 per month. The account offers team management tools, debit cards for multiple employees, and capabilities to open multiple checking and savings accounts to manage cash flow.
Plus, your Mercury account is backed by up to $5 million worth of FDIC insurance through partner banks. Banking services are provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC and deposits are held in various partner banks.
8. U.S. Bank Silver Business Checking: Best for Sign-up Bonus
If you’re looking to earn free cash to boost your business, consider a U.S. Bank Silver Business checking account with a $100 minimum deposit before June 30, 2023. You can earn a $500 bonus when you make new deposits of at least $5,000 and maintain a minimum balance of at least $5,000 until 60 days after the account opening. Increase that to $15,000 in new money deposits and maintain that balance for 60 days and earn $750 deposited into your new business checking account.
U.S. Bank offers tons of benefits for business owners, including no transaction fees for up to 125 transactions each month, 25 free cash transactions (or up to $2,500 in free cash deposits, whichever comes first), no monthly maintenance fee, and 50% off on your first check order, up to $50.
Larger businesses may prefer a Gold Business Checking Account, with no transaction fees for up to 300 transactions per month. It also has a waivable $20 monthly fee.
There is also a Platinum Checking Account Package with 500 free transactions and a $30 monthly fee. This fee is waived by meeting monthly minimum balance requirements.
9. Chase Business Complete Banking: Best for Payment Processing
For those who want to avoid online only banks and are looking for a big bank with international recognition and branches and ATMs across the U.S., Chase Business Complete Banking offers a solid solution. It comes with many ways to waive the monthly service fee.
Chase also makes it easy to accept credit and debit card payments without using a third-party payment processor. Chase QuickAccept is a built-in feature as part of Chase Business Complete Banking. You don’t need to apply for a separate merchant account, and the transaction fees are competitive with other credit card processing companies.
QuickAccept also allows you to access money faster with same-day deposits with no added fees. If you need a merchant payment processing provider that works in synch with your bank account, Chase Business Complete Banking could be the best choice for you.
Right now through August 3, 2023, businesses can earn a bonus up to $500 when they open a Chase Business Complete Checking account and meet requirements, which including total deposits of $15,000 or more. Deposit just $2,000 or more and snag an easy $300 for your new business checking account.
10. Huntington Business Checking 100 (Midwest): Best for Community Banking
Huntington National Bank, headquartered in Columbus, Ohio, since 1866, offers three business checking accounts, including a business interest checking account, Unlimited Plus Business Checking.
The top-tier account includes unlimited transactions, plus cash deposits of up to $25,000. Waive the $40 monthly fee with up to $50,000 in total deposit relationship balances across business accounts. Designed for larger businesses, the Unlimited Plus Business Checking allows you to choose two bonus services such as a fraud tool, waived returned deposited items fees on up to 25 items per month, or two free incoming domestic wires monthly.
The Unlimited Business Checking account offers similar features, with unlimited transactions, free cash deposits on up to $10,000 per month, and a choice of one bonus service. Waive the $20 monthly fee by maintaining a minimum balance of at least $10,000. A Business Checking 100 account offers up to 100 transactions per month, and up to $5,000 in cash transactions with no monthly fee.
Huntington is devoted to the local communities it serves and spotlights small business owners on its website. It also specializes in SBA loans and offers a linked business money market account to earn interest on savings with no monthly maintenance fee if you maintain an average daily balance of $10,000+.
11. Relay Business Checking: Best for Money Management
Relay online banking offers up to 20 primary business checking accounts for members of your team or for different business expenses, plus 50 virtual or physical Visa debit cards. Designed to assist with cash flow and money management, your Relay online banking account allows automated transfers into the various checking accounts based on percentage of income or flat-rate dollar figures.
Your Relay online and mobile banking account also includes up to two business savings accounts with APYs of 1% to 3%. Best of all, unlike many free business checking accounts that are only free if you meet transaction or balance requirements, Relay has no monthly maintenance fee, no transaction fees, no overdraft fees, no ATM fees, and no minimum balance requirements.
12. Axos Basic Business Checking Account: Best for No Fees
Axos Bank has been voted best online bank by Money Magazine and its business offering stands out for small business owners as a straightforward business checking account with no transaction fees, no monthly maintenance fee, and no minimum opening deposit. You also don’t have to worry about balance requirements or ATM fees. You’ll even receive unlimited reimbursements for using out-of-network ATMs within the U.S.
You will need to maintain a minimum balance of at least $5,000 for the first five statement cycles to earn a $100 account opening bonus. You will receive $25 into your business account each month you maintain the minimum requirements. However, if you close the account within 120 days, you might have to pay a $100 early closure fee.
What to Consider When Choosing the Best Free Business Checking Account
The best free business checking account for your business depends on the volume of cash deposits, number of transactions, the size of your company and your general banking needs.
It’s important for a business of any size, including a sole proprietor or 1099 contractor, to open a business checking account to keep business funds separate from your personal checking account and other personal finances. This is especially important at tax time.
Many of the business bank accounts on our list of best free business checking accounts make it easy for you to track your business finances. They offer end-of-month or quarterly reports or integrate with QuickBooks or other accounting software to make money management easy. This, along with costs, quality of customer service, mobile apps, and more should factor into your decision when you choose a small business checking account.
Monthly Maintenance Fee
Account fees have long been a fact of life for individuals and business owners, but they no longer have to be with so many free checking accounts available today. Some of the banks on this list, including Axos and Relay, offer no monthly fee of any kind. Others make it easy to waive the monthly fee by meeting balance requirements.
See if there are any balance requirements, direct deposit requirements, or minimum debit card purchases to avoid the monthly service fee, and if you will be able to meet those minimums easily each month.
Easy-to-use Online and Mobile Banking
Even basic business checking today should have a robust app and mobile banking solutions, including mobile check deposits, capability to turn your debit cards on or off, and to monitor spending in a user-friendly app.
You may think online-only banks have better mobile capabilities, but that’s not always the case. All the best business checking accounts on our list have intuitive, user-friendly mobile apps.
Low Minimum Opening Deposit Requirements
Most of the free checking accounts on our list have low minimum opening deposit requirements. Some may have higher minimums to earn a bonus on your business checking account. Make sure to read the fine print and know the minimum deposit requirements if you want to earn that sign-up bonus.
Reasonable Fees
While it’s possible to find a business checking account with no monthly service fee, your bank may have some fees. Read the fine print so you know exactly what you’re getting for your money. It should be easy to avoid ATM fees, overdraft fees, and even monthly fees.
However, you may have to pay for wire transfers, out-of-network ATMs, and other transactions. Unlike personal accounts, it’s common for business bank accounts to have fees if you deposit cash. Sometimes, a certain number of cash transactions is included in your monthly fee.
Customer Service
It’s important to research the bank’s customer service before you commit to a business checking account. Online only banks, especially, may have limited ways to reach customer support. Find out if they offer 24/7 service. Many people prefer online banking for the convenience and low account fees. But if you experience a problem, you want to make sure you can get help promptly.
Positive Customer Reviews
When you’re looking for the best business checking account, it pays to research the opinions of other business owners like you. Customer reviews can give you a feel for the level of customer service, ATM fees, monthly fees, fraud protection, and more.
Practical Transaction and Cash Deposit Limits
Many of the best business checking accounts offer unlimited transactions and reasonable monthly limits to deposit cash. Many banks offer different tiers of business checking accounts, so you can pay a set monthly fee for the level of service you need.
Linked Business Savings Account or Business Interest Checking Account
If you want to earn interest on your cash reserves, look for a checking account that pays interest or for a bank with a high interest savings account. Pay attention to account fees, withdrawal limits, and
Consider the Need for a Bank With Physical Locations
Online banking offers lower monthly fees and convenience. But if your business needs to deposit cash regularly or you just want personalized service and relationship banking, you might prefer a bank account at a financial institution with brick-and-mortar locations.
Questions to Ask Before Deciding on a Business Checking Account
When you’re shopping around for a free business checking account, consider your needs, the number of transactions you conduct daily, your account balance, and whether you prefer a traditional bank or are willing to consider online only banks for your business checking needs. Ask yourself the following questions so you can compare your options.
Will you be making regular cash deposits?
Many business checking accounts charge a fee if you want to deposit cash. Sometimes, a number of cash deposits will be included in your monthly fee. Make sure to pick an account with the capabilities you need.
Do you prefer a bank or credit union?
You might prefer the personalized service of a credit union instead of choosing a large bank or an online bank. When you’re evaluating credit unions, compare all the features and fees the same as you would evaluate business bank accounts.
Do you need to process customer transactions?
Banks like Chase offer credit card processing as an add-on feature to their services. If you are using an online bank, you might want one that integrates with Stripe, Square, or other payment processors. The capability to process customer transactions is one element that sets a business bank apart from a personal checking account.
Do you want to earn interest on your balance?
Several banks on our list offer high yield savings accounts, which is a benefit for small businesses, start-ups, and any business that wants to earn free money from their balance. You might also consider an interest earning business checking account like Bluevine, which pays interest on your checking account balance.
Business Checking vs. Money Market Account
A money market account is a special savings account designed to hold money that you may need to access in the short term. Some money market accounts offer higher APYs than other savings accounts. A money market account often has limits on the number of fee-free withdrawals per month.
Most business owners will want to open a free business checking account and link it to a money market account to earn interest on cash reserves.
What You Need to Open a Small Business Checking Account
You may not need an Employer Identification Number or Tax ID number to open a business checking account. If you have one, you should open the account using that number instead of your Social Security number to help keep your business and personal funds separate.
But if you are a freelancer and file taxes as a sole proprietor/self-employed, you can open your business checking account with your SSN. However, if your business has a DBA (doing business as) you will need a certificate or paperwork showing that name.
Likewise, if you are an LLC, you’ll need your business registration along with your EIN. If you have a partnership, you’ll need your partnership agreement and paperwork showing the business name.
Beyond that, you can open a business checking account with your business address, a phone number, email address and the minimum deposit (if required). Visit a branch for personalized service or open your free business checking account online.
FAQs
See what people are asking about free business checking accounts.
Do you need to pay account or transaction fees?
Some business checking accounts have monthly fees that you can waive by meeting specific requirements. You may also pay ATM fees, fees for cash deposits, and fees for wire transfers or international transactions.
Read the fine print or speak to a personal banker to choose the account that’s right for you.
Can you open a business checking account with no credit check?
Most banks and credit unions will allow you to open a business checking account with no credit check. By maintaining a positive balance in your account, you can build your business credit. A credit check may be required for business loans, lines of credit, or “net” terms with vendors.
What are the most important features of business checking accounts?
Most business owners are looking for business checking with no ATM fees and no monthly fee or easy ways to waive the monthly fee. Beyond that, consider the type and number of transactions you complete monthly, whether you need payment processing capabilities, and if you want a linked savings account to earn interest.
What banks offer free business checking accounts?
Many online and traditional banks offer free business checking or easy ways to waive the monthly fee. The list above describes 12 of our favorite options in free business checking.
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.
You can get an impressive return on cash you don’t need right away when you put it in a high-yield savings account. There’s no shortage of those around.
There aren’t quite as many high-yield checking accounts on the market, but that’s slowly changing. Innovative community banks like Quontic Bank and its High Interest Checking account are leading the way for people who want to earn interest on their walking-around money.
You have to work for that interest though. That’s one of several downsides to consider before applying for a Quontic High Interest Checking account. Perhaps you won’t deem them deal-breakers in the end, but it’s always better to be a fully informed consumer.
What Is Quontic Bank High Interest Checking?
Quontic Bank High Interest Checking is a high-yield checking account that earns up to 1.10% APY.
To earn the maximum interest rate on your balance, you must make at least 10 in-person debit card transactions of at least $10 each. Otherwise, you earn just 0.01% APY.
Quontic Bank is a small community bank based in New York, but it has a prominent online presence, and Quontic High Interest Checking is available to applicants nationwide. The minimum deposit to open an account is $100 and there’s no monthly or annual maintenance fee.
What Sets Quontic Bank High Interest Checking Apart?
Quontic High Interest Checking stands out for several reasons:
Above-average yield with qualifying monthly debit transactions. Complete at least $10 in-person debit card transactions worth at least $10 each in a statement cycle to earn 1.10% APY on your entire balance. That’s doable if this is your main checking account.
No maintenance fee. Quontic High Interest Checking charges no maintenance fees. You won’t pay anything to keep your account open.
Big fee-free ATM network. Quontic Bank has more than 90,000 fee-free ATMs in its network, which spans the entire United States.
Innovative approach to banking. Despite its small physical footprint, Quontic Bank is relentlessly innovative. It has one of the best mobile banking apps on the market and developed the first nonwatch payment wearable — theQuontic Pay Ring.
Key Features of Quontic Bank High Interest Checking
Quontic High Interest Checking’s core features include its interest program, its expansive ATM network, and its robust mobile features.
Account Yield & Requirements
Quontic High Interest Checking’s base yield is 0.01% APY on all balances. The yield rises to 1.10% APY, also on all balances, when you complete at least 10 in-person debit card transactions of $10 or more in a given statement cycle.
The yield applies to your entire balance. Back in the day, Quontic paid interest only on the first $150,000 in the account. That cap could theoretically return at some point in the future, though it’s high enough not to be a problem for most people.
Account Fees & Minimums
This account has no monthly or annual maintenance fee. The minimum opening deposit and ongoing balance is $100.
ATM Access
Quontic Bank has more than 90,000 fee-free ATMs in its network. You can find these machines at major convenience store chains, superstores, supermarkets, and other retailers coast to coast.
Mobile Features
Quontic Bank has an excellent mobile banking experience. Its mobile app can handle everything the regular online dashboard can, including mobile check deposit, bill payments, and person-to-person transfers.
Quontic also offers a groundbreaking and free (for now) contactless payment option called the Quontic Pay Ring. It’s a secure plastic ring that you can tap to pay from your Quontic High Interest Checking account wherever you see the contactless payment symbol.
Deposit Insurance
Your Quontic High Interest Checking balance has FDIC insurance on balances up to $250,000. If Quontic Bank were ever to fail, the federal government would step in to reimburse deposits up to this amount.
Pros & Cons
Quontic High Interest Checking does a lot of things well but has a few notable shortcomings too.
Above-average interest rate with qualifying activities
No monthly maintenance fee
Big fee-free ATM network
Must meet transaction requirements to earn significant interest
No debit card rewards
No early direct deposit
Pros
Quontic High Interest Checking complements its above-average yield (for a checking account) with other customer-friendly features.
Above-average interest rate with qualifying activities. Earn 1.10% APY on all balances for the entire statement cycle when you complete at least 10 debit transactions in-person and spend at least $10 on each. This is definitely attainable if you use your debit card for every in-person purchase.
No monthly maintenance fee. Quontic High Interest Checking charges no monthly (or annual) maintenance fee, so there’s no carrying cost to worry about.
Excellent mobile experience. You can easily do all your banking from your phone thanks to Quontic’s excellent mobile app. And in what Quontic claims is a first among American banks, you can use your Quontic Pay Ring to make in-person payments without taking out your debit card or phone.
Big fee-free ATM network. Quontic Bank has one of the biggest fee-free ATM networks of any bank in the United States, at more than 90,000 machines in all. They’re distributed across the country, and most are far from any physical Quontic branches.
Cons
Quontic High Interest Checking has some missing or unwieldy features that lessen its appeal.
Must meet transaction requirements to earn significant interest. Making 10 debit card transactions of $10 or more each month might not be a deal-breaker if this is your primary checking account. If it’s not, you might find yourself earning just 0.01% APY, which is barely worth the time it takes to open an account.
No rewards on debit transactions. Quontic High Interest Checking has no debit card rewards program. If you’d rather not apply for a rewards credit card but want to earn points or cash on everyday purchases, look to Go2Bank instead.
No early direct deposit. For such a mobile-friendly bank, it’s notable that Quontic has no early direct deposit feature. At a growing number of other banks, you can get your paycheck direct-deposited two days ahead of schedule as a matter of course.
Has a minimum balance. You need to scrounge up $100 to open a new Quontic High Interest Checking account. This isn’t a massive amount of money, but it could be a problem if you live paycheck to paycheck.
How Quontic Bank High Interest Checking Stacks Up
Quontic Bank High Interest Checking is part of a growing crop of interest-bearing checking accounts from lesser-known online and community banks. It has a lot in common with another interest checking account: Nationwide Advantage Checking. Compare them head-to-head, then make your choice.
Quontic High-Interest
Nationwide Advantage
Maintenance Fee
$0
$0
Minimum to Open
$100
$50
Minimum Ongoing
$50
$0
Maximum Yield
1.10% APY
0.90% APY
Qualifying Activities?
Yes
Yes
Quontic High Interest Checking and Nationwide Advantage Checking both have no maintenance fees and require qualifying activities to earn full interest. Quontic is a bit more relaxed on this front though, with just one requirement — 10 in-person debit card transactions per month, each totaling at least $10 — to Nationwide’s two. Quontic has a slightly higher maximum interest rate as well. So all in all, it’s the better choice.
Final Word
Quontic Bank High Interest Checking pays an above-average interest rate (for a checking account) in any statement cycle where you make enough qualifying debit card transactions. It has no recurring fees and an excellent mobile app. You can even make contactless payments with a wearable ring.
There’s a lot to like about this account, but it’s not perfect. Some high-yield checking accounts pay even more, often without asking users to jump through any hoops. And Quontic High Interest Checking has some notable points of friction, like its minimum balance requirement and lack of early direct deposit.
It’s up to you to decide whether the good outweighs the bad.
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.
The Verdict
Our rating
Quontic Bank High Interest Checking
Quontic Bank High Interest Checking is an above-average checking account thanks to an unusually high interest rate on all balances (with qualifying activities) and no hidden fees. It has an excellent mobile experience and a big fee-free ATM network too. But it’s not ideal if you don’t plan to use it as your primary checking account or enjoy earning rewards on debit card purchases.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
Know the minimum amount to open a savings account and understand any savings account fees before you get started.
June 23, 2023
If you’re looking for a way to safely store your savings while also allowing your money to grow through compound interest, a savings account could be for you. Savings accounts are ideal for building an emergency fund and saving for your goals. But before you open one for yourself, you’re probably wondering: Does it cost money to open a savings account? And if so, how much is it to open a savings account?
As you evaluate different savings accounts, take note of any initial deposit requirements, minimum balance rules, and potential fees before landing on the right one for you.
Understand the value of savings accounts
For all their simplicity, savings accounts provide many benefits to help you reach your financial goals. With a high-yield savings account, for example, you can:
Keep your savings secure
When it comes to your savings, safety and security are often a top priority. If you open a savings account at a financial institution insured by the Federal Deposit Insurance Corporation (FDIC), you can rest easy. That’s because FDIC insurance protects up to $250,000 per depositor, per insured bank, per deposit ownership category, and that maximum applies for each bank you have an account with, as long as the bank is an FDIC member. (Discover Bank is an FDIC member.)
Another safety advantage: Money in a savings account isn’t affected by swings in the stock or bond markets. So you’ll never have to worry about market turmoil draining your account.
Watch your money grow
Your money doesn’t just sit in a savings account—it grows with the help of compound interest. Compound interest allows you to earn interest not only on your initial deposit but also on any interest that your account accumulates.
The power of compounding can lead to some significant gains down the road. For example, say you put $5,000 into a savings account today with a 3.75% annual percentage yield (APY), which compounds monthly. In 10 years, without putting additional money into the account, your savings will have grown to just over $7,270. (That assumes the interest rate stays fixed at 3.75%, but interest rates can and do change over time.)
Using that same example, let’s say that instead of just letting your money sit there and grow, you add $100 to your account each month. In 10 years, you’d have about $21,800. That’s the power of compounding and diligent saving at work. (Feel free to experiment with the numbers using a compound interest calculator.)
Call it a sunny day fund—online savings with no monthly fees
Discover Bank, Member FDIC
Easily access your funds
Savings accounts provide account holders a convenient and accessible place to keep their money. Whether you’re managing your account from a computer, tablet, or mobile app, most financial institutions will allow you to move money into and out of your savings account with ease. Just make sure you know your bank’s withdrawal limits regarding your specific savings account. Exceeding those limits could lead to fees, which can eat into your savings.
Consider minimum deposit requirements
Some banks have a savings account minimum deposit, while others set a minimum balance threshold. Some banks even require both.
As you consider the savings account that’s right for you, make note of these two common requirements:
Minimum initial deposit
This is the minimum dollar amount needed to fund the savings account via the initial deposit. Choosing a bank without a minimum is always an option, though. For example, Discover Bankdoesn’t require a minimum amount to open a savings account.
Minimum balance requirements
Sometimes banks will require you to maintain a minimum amount in your savings account. And if you don’t? You could get hit with a monthly fee on your savings account. The Discover Online Savings Account has no online savings account minimum balance requirements, but some other banks do, so be mindful.
If you’re just starting out on your savings journey, having to abide by any minimum requirements can make a difference. Pay close attention to make sure you open a savings account that’s the best fit for you.
Look out for savings account fees
When choosing a savings account, make sure you know about any savings account fees that could be triggered. Here are three to look out for:
Savings withdrawal limit fee
In 2020, amid the pandemic, the Federal Reserve suspended Regulation D, which had limited transfers or withdrawals on savings accounts to six per month, according to Bankrate. While that means the federal government isn’t currently regulating the maximum number of withdrawals or transfers an account holder can make, individual banks may have their own rules and may impose a fee if you exceed their limits.
If a financial institution does have savings withdrawal limit fees, you can avoid them by learning how many transactions (such as third-party transfers, bill payments, and bank transfers) your bank allows each month.
Insufficient funds fee
Just like a checking account, your savings account may incur a fee if you withdraw more than what’s available. To prevent this, monitor your account balance closely by keeping track of all withdrawals and transfers. If you want more of a hands-off approach, look for a savings account with overdraft protection, such as the Discover Online Savings Account, which doesn’t impose insufficient funds fees.
Monthly maintenance fee
Discover Bank never charges monthly maintenance fees, which can be incurred if certain requirements, such as minimum balances, aren’t met. Be sure to look into what conditions could activate monthly savings account maintenance fees at your bank so you can avoid them. (Or choose a bank that doesn’t have them at all.)
Find the savings account that’s right for you
While everyone’s financial needs differ, it’s a good idea to keep some key features in mind when researching potential savings accounts. Here are a few tips as you make your decision:
Look for low (or no) fees
If you can, find a bank that doesn’t charge excessive fees (or, ideally, any). When you’re trying to build up your savings, savings withdrawal limit fees, insufficient funds fees, and savings account maintenance fees can add up quickly.
Seek a high rate of return
Look for a savings account with a favorable interest rate so your money can grow as quickly as possible. High-yield savings accounts like the Discover Online Savings Account can offer a significantly higher annual percentage yield than the national average.
Assess the services offered
In these days of online banking, it’s all about convenience. So look for an easy-to-use mobile app, 24/7 customer service, and other services that are important to you.
Ready to open a high-yield savings account with no fees or minimums?
Whether you’re trying to build an emergency fund or save up for a big goal, a savings account can help you get there. Now that you have a complete understanding of high-yield savings account minimum deposits, fees, and interest rates, you’re ready to make the right decision for you.
If no fees and a high yield sound good to you, check out the Discover Online Savings Account to see how it can support your goals and fit your lifestyle.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
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 don’t pay interest, but a growing number of high-interest checking accounts do. Some offer yields on par with the best high-yield savings accounts, though often with extra hoops to jump through.
Nationwide Advantage Checkingcan’t match the best savings account yields, but it nevertheless provides a reasonable return on your cash when you meet two qualification requirements. If you regularly use your debit card and receive recurring direct deposits each month, you should qualify for the full yield.
That said, Nationwide Advantage Checking has some important downsides to consider before opening an account. Weigh the pros and cons carefully.
What Is Nationwide Advantage Checking?
Nationwide Advantage Checking is a high-yield online checking account that earns up to 0.90% APY in any statement period where you meet the two qualifying criteria:
Receive direct deposits totaling $1,000 or higher each month (good for 0.45% APY)
Make at least 10 in-person debit card transactions, each totaling $3 or more (good for another 0.45% APY)
If you complete one qualifying activity but not the other in a given statement cycle, you earn the posted interest rate for that activity but not the maximum possible yield.
Nationwide Advantage Checking is backed by Axos Bank, one of the biggest online banks in the United States. In addition to potentially paying interest on balances, it has customer-friendly features like no monthly maintenance fee and no ongoing minimum balance.
What Sets Nationwide Advantage Checking Apart?
Nationwide Advantage Checking stands out for several reasons:
Pays interest with qualifying activities. You can earn up to 0.45% APY when you receive qualifying direct deposits and complete at least 10 in-person debit card transactions of $3 or more each.
No maintenance fees. Unlike some high-yield and rewards checking accounts, Nationwide Advantage Checking charges no monthly or annual maintenance fees.
Big ATM network. Nationwide Advantage Checking has more than 80,000 machines in its ATM network, which spans the entire United States. You pay no fees to withdraw cash from these ATMs.
Above-and-beyond security features. On top of standard security features like automatic timeouts and SSL encryption, Nationwide Advantage Checking goes above and beyond with protections like two-factor authentication and complimentary antivirus and malware protection.
Key Features of Nationwide Advantage Checking
Don’t open a Nationwide Advantage Checking without understanding its core features and capabilities, from its fees and minimums to the conditions it places on interest payments.
Account Yield & Requirements
Nationwide Advantage Checking’s maximum yield is 0.90% APY. You must complete both of the following qualification requirements to earn it in any given statement cycle:
Make 10 or more debit card transactions in person, each totaling at least $3
Receive at least $1,000 in qualifying direct deposits, not including transfers between bank accounts
The debit card transaction requirement qualifies you to earn 0.45% APY on your account balance. The direct deposit requirement qualifies you to earn another 0.45% APY.
If you complete only one or the other in a given statement cycle, you earn only the corresponding interest rate. If you complete neither in a given statement cycle, you earn no interest for the period.
Account Fees & Minimums
This account has no monthly or annual maintenance fee and no ongoing minimum balance. There is a $50 minimum required opening deposit.
ATM Access
Nationwide Advantage Checking has more than 80,000 ATMs in its fee-free network. Cash withdrawals are free at all machines in the network, but you may face surcharges if you venture outside it.
Security Features
All bank accounts come with certain standard security features, such as encryption and password protection. Nationwide Advantage Checking goes a bit beyond the typical security lineup with two notable nonstandard features:
Complimentary malware and virus protection for customers
Two-factor authentication, which means your password alone isn’t enough for intruders to gain access to your account
Mobile Features
Nationwide Advantage Checking has a user-friendly mobile app with all the main features of the regular online account dashboard. You can deposit paper checks on your phone, set up recurring and one-time bill payments, and transfer funds to external accounts or other individuals with a few taps.
Deposit Insurance
Nationwide Advantage Checking comes with FDIC insurance on balances up to $250,000. Should Axos Bank (Nationwide’s banking partner) go under, your deposits are guaranteed by the federal government up to this amount.
Pros & Cons
Nationwide Advantage Checking has some clear advantages and a few notable downsides as well.
No maintenance fees or ongoing minimum balance
Better potential yield than most checking accounts
Large ATM network
Must complete qualifying activities to earn interest
Lower yield than the best high-yield checking accounts
No debit card rewards
Pros
Nationwide Advantage Checking is a low-cost, low-balance checking account that has the potential to be at least somewhat rewarding.
No maintenance fees. Nationwide Advantage Checking charges no monthly or annual maintenance fees, so you won’t pay anything out of pocket to keep your account open.
No ongoing minimum balance. Once your account is open, you’re not required to maintain a minimum balance. Some interest checking accounts make you keep hundreds or thousands of dollars in the bank at all times.
Better potential yield than most checking accounts. Nationwide Advantage Checking has a higher yield than most checking accounts. After all, traditional checking accounts pay no interest at all.
Large ATM network. Nationwide (through Axos Bank) has more than 80,000 fee-free ATMs, more than many competing banks.
Above-average security features. Nationwide Advantage Checking has a few nonstandard but welcome security features, such as antivirus protection and two-factor authentication.
Cons
Nationwide Advantage Checking attaches important conditions to interest payments and isn’t among the highest-interest checking accounts on the market in any case.
Must complete two qualifying activities each statement cycle to earn interest. You need to make at least 10 qualifying debit card transactions and receive at least $1,000 in qualifying direct deposits to earn the maximum interest rate in any given statement cycle. While not totally outrageous, these requirements aren’t easy for every user to fulfill.
Maximum yield can’t match the best high-interest checking accounts. It’s nice that Nationwide Advantage Checking yields anything at all. But it’s a far cry from the top high-yield checking accounts, whose yields compete with the top high-yield savings accounts.
No rewards on debit card spending. Nationwide Advantage Checking has no debit card rewards program. If you want to earn rewards on spending, consider a rewards checking account or app like Go2Bank.
How Nationwide Advantage Checking Stacks Up
Nationwide Advantage Checking shares the spotlight with several other interest-bearing checking accounts. Before you apply, see how it compares to another popular option: Quontic Bank High-Interest Checking.
Nationwide Advantage
Quontic High-Interest
Maintenance Fee
$0
$0
Minimum to Open
$50
$100
Minimum Ongoing
$0
$50
Maximum Yield
0.90% APY
1.10% APY
Qualifying Activities?
Yes
Yes
Both Nationwide Advantage Checking and Quontic High-Interest Checking have no maintenance fees and low minimums. Both also require qualifying activities to earn interest, though Quontic is a bit more manageable with just one requirement. Quontic’s maximum interest rate also noses ahead of Nationwide’s, if not by much.
Final Word
Nationwide Advantage Checking uses a two-tiered interest rate to encourage you to make it your main checking account. Neither qualifying activity is a heavy lift if you have a steady, decent-paying job and regularly use your debit card in person. While the maximum interest rate (currently 0.90% APY) can’t match the top interest-bearing checking accounts, it’s way better than nothing.
That’s not to say Nationwide Advantage Checking is the best checking account on the market. For example, you can earn interest at a much higher rate in a Wealthfront Cash Account — without jumping through any hoops — and you can earn rewards on debit card purchases with Go2Bank (among many other rewards checking accounts and apps). Nationwide deserves to be in the conversation, but don’t open an account before seeing what else is out there.
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.
The Verdict
Our rating
Nationwide Advantage Checking Review
Nationwide Advantage Checking has a higher yield than most checking accounts, but you have to meet two qualification requirements to earn it. It’s also not as rewarding as some checking accounts with more relaxed qualification requirements (or none at all). But it’s still worth investigating if you’re in the market for a new checking account and appreciate the opportunity to earn a return on your cash.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
The biggest banks generally aren’t known for competitive savings account yields. Even with interest rates higher than they’ve been in years, many big-bank savings accounts remain stuck in near-zero interest rate territory.
Citi® Accelerate Savings is a rare exception. While not quite at the top of the heap, its yield is well above the national average — competitive enough to qualify as a legitimate high-yield savings account. If you’re looking for a strong return on your money without leaving the stable, comforting embrace of an international financial powerhouse, it could be a perfect fit for you.
But before you run out to open an account, make sure Citi Accelerate Savings really is the best choice. Like every bank account, it has some notable shortcomings too.
What Is Citi Accelerate Savings?
Citi Accelerate Savings is a high-yield savings account from Citibank. It yields 4.05% APY on all balances and has no minimum balance to open or maintain. You do need to maintain a balance of at least $500 to avoid the $4.50 monthly maintenance fee.
Like most Citi deposit accounts, Citi Accelerate Savings is the savings part of a checking-savings account package. You must open an Accelerate Savings account alongside a corresponding Citi checking account. Citi Access Checking or Basic Checking are both no-frills checking account options with low, easy-to-waive monthly maintenance fees.
Eligibility is limited to residents of certain states — enter your ZIP code on the application page to see whether Accelerate Savings is available in your area.
What Sets Citi Accelerate Savings Apart?
Citi Accelerate Savings stands out for a few key reasons, not all positive:
Yield well above the national average. Citi Accelerate Savings yields 4.05% APY on all balances. That’s well above most other big-bank savings accounts and the national savings account average too.
No minimum balance to open. You can fund your new Citi Accelerate Savings account with any amount of cash.
Monthly maintenance fee applies on lower balances. Watch out for the $4.50 monthly maintenance fee assessed in any statement cycle your balance drops below $500.
Only available in certain states. Citi Accelerate Savings is available in most areas* but not all. Enter your ZIP code on the application page to find out if you’re eligible.
Key Features of Citi Accelerate Savings
Citi Accelerate Savings has all the hallmarks of your typical savings account, but the details vary a bit from what you might be used to. Familiarize yourself with its key features before moving ahead with your application.
Account Yield
Citi Accelerate Savings pays interest at a very competitive rate: 4.05% APY on all balances. There’s no minimum balance to earn interest, and every dollar in your account earns at the same rate.
Account Fees & Minimums
There’s no minimum balance to open this account. However, if your balance drops below $500 in a given statement cycle, you must pay a $4.50 maintenance fee for the period.
Savings Automation
Citi’s AutoSave feature makes it easy to automate deposits to your Accelerate Savings account. Choose weekly, biweekly, monthly, or some other frequency and take the human element out of building your nest egg.
Overdraft Protection
Citi’s optional overdraft protection plan is called Safety Check. If you enroll, you can use your Accelerate Savings account as a backup for an overdrawn Citi checking account (except Access Checking), pulling from the savings account as needed to cover overdrafts. Citi rounds each draw up to the nearest $100.
Mobile Features
Citi Accelerate Savings comes with a comprehensive mobile app with capabilities like:
Digital bill payments
Person-to-person transfers
Mobile check deposit
Rapid electronic transfers
Single-dashboard view of all active Citi accounts
Deposit Insurance
Citi Accelerate Savings comes with FDIC insurance on balances up to$250,000. In the unlikely event that Citibank fails, the federal government guarantees deposits up to this amount.
Pros & Cons
There’s a lot to like about Citi Accelerate Savings and a few things to dislike.
Excellent yield on all balances
No minimum balance to open
Excellent mobile app
Minimum balance to avoid the maintenance fee
Requires a linked Citi checking account
Not available in all markets
Pros
Citi Accelerate Savings’ advantages go beyond its competitive yield. It’s one of the more mobile-friendly accounts on the market and serves as a valuable backstop for checking overdrafts — a capability many online banks can’t match.
Excellent yield on all balances. Accelerate Savings doesn’t quite have the best yield of any savings account on the market, but it’s well above the national average and better than the vast majority of big-bank savings products.
No minimum balance to open. There’s no minimum balance to open an Accelerate Savings account, which makes it a realistic choice for savers just starting out.
Optional overdraft protection for your linked Citi checking account. Citi’s optional Safety Check feature enlists your Accelerate Savings account as a backup for overdrawn checking accounts. The only checking account excluded from the deal is Access Checking. If you anticipate overdrafting often, think twice about opening an Access Checking account as the checking portion of your package.
Robust mobile app. Citi’s mobile banking app is better than most. You can do just about anything with it that you can through the regular online dashboard (or in a Citi branch for that matter).
Deposit insurance up to $250,000. Rest assured that your money is safe in the very unlikely event that Citi goes under.
Cons
Citi Accelerate Savings has some inconvenient features and limitations.
Must keep at least $500 in the account to avoid the monthly fee. This is one of the few high-yield savings accounts that charges a monthly maintenance fee. Fortunately, it’s easy to avoid with a balance of $500 or more, but it’s not ideal for frugal savers.
Must open alongside a Citi checking account. You can’t open a Citi Accelerate Savings account by itself. You need to pair it with a Citi checking account, which may have its own monthly fee and waiver requirements.
Not available everywhere. Accelerate Savings is available in most areas* but not quite nationwide. Even if it seems like the perfect savings account for you, it might be out of reach unless and until you move.
How Citi Accelerate Savings Stacks Up
The Citi Accelerate Savings account compares favorably to most big-bank savings accounts. But before you apply, see how it compares to one of the best high-yield savings accounts around: the Marcus Online Savings account, backed by Citi competitor Goldman Sachs.
Citi Accelerate Savings
Marcus Online Savings
Yield
4.05% APY
4.15% APY
Minimum Balance
$0
$0
Maintenance Fee
$4.50 if your balance drops below $500, otherwise $0
$0
Linked Checking Account
Yes
No
Savings Automation
Yes
Yes
Overdraft Protection
Optional
No
Available Nationwide
Almost
Yes
Marcus Online Savings comes with fewer strings than Citi Accelerate Savings, which must be opened as part of a checking-savings package and has a monthly maintenance fee if your balance drops below $500. But Citi Accelerate Savings is a better fit if you want the security of overdraft protection.
Final Word
Citi Accelerate Savings is one of the best big-bank savings accounts on the market. Its yield is well above the national average (if not quite best in class) and it’s easy to waive the monthly maintenance fee with a $500 balance. Optional overdraft protection is a nice touch too, one missing from many online savings accounts.
This account does have some shortcomings though. First of all, it’s not available in all markets. The maintenance fee is a problem for people just starting out on their savings journeys. And you must open it as part of a checking-savings package.
All in all, there’s more to like than dislike about Citi Accelerate Savings. But it might not be right for you.
*The Citi® Accelerate Savings account is available to customers with a residential/home address (not mailing address) in AA, AE, AL, AK, AZ, AR, AS, CO, DE, GA, GU, HI, ID, IN, IA, KS, KY, LA, ME, MA, MI, MN, MP, MO, MS, MT, NE, NH, NM, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VI, VT, WA, WV, WI, WY, and select markets in Florida and Illinois.
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.
The Verdict
Our rating
Citi® Accelerate Savings
Citi Accelerate Savings stands head and shoulders above most other big-bank savings accounts. If you’re looking for a reliable savings account with a very competitive yield and full deposit insurance, it’s worth a close look. However, it has some important shortcomings and isn’t available in all areas, so it might not be the best option for you.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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
What Does ACH Stand For in Banking Terms?
The Automated Clearing House Network, or ACH, is how Americans send electronic funds transfers. Virtually every bank, credit union, and fintech company in the U.S. uses the ACH network. Find out how it works and how to use it to send and receive money.
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.
U.S. Bank is one of the biggest banks in the United States, so it’s no surprise that it offers a dizzying array of CDs. The more important question — one you’re perhaps asking right now — is “are they any good?”
Without giving the game away entirely, U.S. Bank’s CD lineup is a mixed bag. Most of its CDs have yields too low to seriously consider, but it does have a few that pay competitive interest rates. Whether any of those fit your needs depends on how much money you can bring to the table, how long you want to keep your cash tied up, and what your plans are after the initial term ends.
U.S. Bank Certificates of Deposit
Three of the four U.S. Bank CDs have very low interest rates and aren’t worth considering. The special CD has far more competitive yields and is definitely worth checking out if you’re in the market for a new CD.
The minimum deposit is $1,000 for all but the standard CD, which you can open with just $500. All U.S. Bank CDs have FDIC insurance up to the statutory requirement of $250,000.
Special CD Terms & Yields
U.S. Bank has four short- to medium-term special CDs with competitive yields:
Term
Yield
Seven months
Up to 4.80% APY*
11 months
Up to 4.90% APY*
15 months
Up to 4.95% APY*
19 months
Up to 4.95% APY*
The minimum deposit is $1,000.
Note that the advertised rate varies by geographic location and is good for the initial term only. Unless you close the account and withdraw your funds, the CD automatically renews at maturity into a standard CD with the closest term length — and a much lower interest rate.
Other U.S. Bank CD Types
Their low yields take them out of contention unless you really don’t care about getting a return on your investment, but for posterity, these are U.S. Bank’s three other CD types:
Standard CD. Terms range from one month to five years. Yields range from 0.05% APY* on the shorter-term CDs to 0.25% APY* on the five-year CD.
Step-up CD. This is a 28-month CD that automatically steps up its interest rate every seven months. But that doesn’t get you very far. The starting yield is 0.05% APY* and the ending yield isn’t much better at 0.65% APY*.
Trade-up CD. This CD type offers 30-month or five-year terms. You can raise your interest rate once if U.S. Bank’s offered rate increases during your term, but there’s no guarantee of this. And again, the starting yields are frustratingly low: 0.10% APY* for the 30-month and 0.40% APY* for the five-year.
What Sets U.S. Bank CDs Apart?
U.S. Bank’s CDs stand out for a few reasons, not all of them positive:
Competitive yields on the special CDs. U.S. Bank’s four special CDs yield well above the average for big banks in the United States — up to 4.95% APY* on the 19-month CD.
Special CD yields only good for the initial term. The other side of the special CD coin is that their above-average yields are good only for the initial term, the longest of which lasts 19 months. After that, unless you close the account, the CD renews into a standard CD with a similar term length and a far, far lower yield.
Hefty early withdrawal penalties. U.S. Bank’s CD early withdrawal penalties involve some complicated math, but you pay a $25 penalty right off the bat and then forfeit some or all of the accrued interest. If you withdraw early in the term or cash out a shorter-term CD early, you could lose some of your initial investment.
Lots of junky options. Due to their low yields, the large majority of U.S. Bank’s CDs are barely worth discussing. Unless you don’t care about getting a competitive return on your cash, you can write off the standard CDs, Step Up CDs, and Trade Up CDs.
Key Features of U.S. Bank CDs
Before you apply for a U.S. Bank CD, understand how they work and how to make sure you get the most out of your account.
Opening & Funding a New CD
You can open your new U.S. Bank CD online in a few minutes. Once open, you can fund it with an inbound transfer from an external bank account or an instant transfer from an existing U.S. Bank checking or savings account.
If you’re funding your CD with external money, it might take one to three business days for the deposit to hit, and you’ll earn slightly less interest as a result.
Interest Calculation & Credit Schedule
U.S. Bank compounds interest daily and deposits it into your CD at the end of the year or the end of the term, whichever comes first. On CDs with terms under one year, you receive all accrued interest at once, when the CD matures.
Early Withdrawal Penalties
If you withdraw principal from your CD or close your account entirely before it matures, you must pay an early withdrawal penalty.
This penalty comes in two parts: a flat $25 fee that applies to all early withdrawals, and a variable penalty based on the CD’s term and size. U.S. Bank calculates the variable penalty as follows:
Terms of six months or less: The greater of all the interest you would have earned if you held to maturity or 1% of the amount withdrawn.
Terms greater than six months to one year: The greater of 50% of the interest you would have earned if you held to maturity or 1% of the amount withdrawn.
Terms greater than one year: The greater of 50% of the interest you would have earned if you held to maturity or 3% of the amount withdrawn.
Depending on how much cash you withdraw and how early in the term the withdrawal occurs, you could lose some of your principal (your initial investment) in addition to much or all of the interest you would have earned on the principal.
CD Maturity & Renewal
If you don’t do anything, your CD automatically renews at maturity into a fresh CD with an identical or similar term.
Importantly, special CDs don’t roll into new special CDs when they mature. Instead, they become standard CDs with much lower interest rates.
Closing or Making Changes to a Maturing CD
You have a grace period of 10 days from the maturity date to close your account or make changes, such as depositing more cash, withdrawing some but not all of your principal, or changing to a different term. You can do this online, by phone, or in a U.S. Bank branch.
Unless you’re not at all concerned about getting the best return on your money, it’s in your interest to cash out your special CD in full at maturity. If the special CD rates are still available and you have another source of cash, you can open a fresh special CD — an extra step, but well worth it.
Pros & Cons
U.S. Bank CDs have some upsides and some downsides. Here’s a summary of both.
Pros
U.S. Bank’s most notable CD advantages are that they have a few competitive CDs while still being relatively easy to interact with.
Yields well above average on the special CDs. U.S. Bank’s special CD yields are among the best on the market for the corresponding term lengths. Though they’re only good for one term, they’re worth pursuing.
Reasonable opening deposit. You need $500 to open a standard CD (which isn’t a good deal due to its low yield) and $1,000 to open other types of U.S. Bank CDs, including special CDs. That’s not as low as some banks, but it’s reasonable in comparison to many others.
Easy to open an account online. It takes just a few minutes to open a U.S. Bank CD online. There’s no need to visit a branch or pick up the phone.
Cons
U.S. Bank CDs have some important disadvantages. The common denominator is that most simply aren’t competitive with top competitors..
Below-average yields on most CDs. Other than the special CDs, U.S. Bank’s CDs have underwhelming yields. They’re just not worth it unless you really don’t care about getting a good return on your money.
Can only earn the special CD yield for one term. The special CD yield is good for only one term. When the CD matures, it rolls into a standard CD with a similar term length and a much lower yield. You can game the system by reopening a special CD with different funds, but there’s no guarantee the promotion will be available when the time comes.
High early withdrawal penalties. U.S. Bank CDs have high early withdrawal penalties. The math is complicated, but the bottom line is that there’s a good chance of losing all your accrued interest plus some principal.
No terms longer than five years. Five years is a relatively long time, but if you have a very long investment time horizon and don’t want to put your money in the stock market, it might not be long enough. Some other banks offer CDs with terms as long as 10 years.
How U.S. Bank CDs Stack Up
U.S. Bank has many competitors in the CD business. Some of them compare quite favorably, like Quontic Bank. Before you open a U.S. Bank CD, see how it stacks up against Quontic’s lineup.
U.S. Bank
Quontic Bank
Term Lengths
One month to five years
Six months to five years
Yields
Up to 4.95% APY*, but most are lower
Up to 5.15% APY
Minimum Deposit
$500 to $1,000, depending on type
$500
Penalties
$25 plus variable penalty
Up to 24 months’ interest
Renewal
Automatic
Automatic
Close or Change
Can do online
Must call in
Overall, U.S. Bank makes sense if you can live with a shorter-term special CD and don’t want to deal with a human at any point. Otherwise, Quontic Bank is the superior choice due to its high yields and no “special CD” funny business.
Final Word
U.S. Bank’s CD lineup has four different types spanning more than two dozen terms. Its four special CDs have legitimate appeal thanks to their high yields and reasonable opening deposit requirements. Unfortunately, the rest yield so little that they aren’t worth a second thought — not with so many other fantastic CD options on the market.
Even the special CDs come with frustrating strings attached, particularly the fact that the high promotional rate is only good for one term. If you already bank with U.S. Bank and you’re looking for a quick boost to your savings return, opening a special CD makes sense. Otherwise, look to an online bank with a better overall CD lineup.
*Rates vary by state and zip code. Please click “Open an Account” above to see your rate before applying.
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.
The Verdict
Our rating
U.S. Bank CDs
U.S. Bank’s special CDs are worth gunning for, particularly if you already bank with U.S. Bank. However, its overall lineup is mediocre at best. There are better places to park your money for any length of time.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
Unless you have hundreds of thousands of dollars (or more) in cash to save or invest, big banks don’t want your money. They won’t tell you that directly, but they make it plain with paltry yields on standard savings accounts and high asset requirements to avoid common banking fees.
Fortunately, high-yield savings accounts abound, mainly at online and community banks that (still) seem to put regular customers first. The Upgrade Premier Savings account is among the best of the bunch, at least if your top priority is getting the most for your money.
Upgrade Premier Savings isn’t perfect, but it’s a big step up from many savings accounts. Get to know its features, capabilities, and pros and cons to decide if it’s right for you.
What Is the Upgrade Premier Savings Account?
The Upgrade Premier Savings account is a high-yield online savings account with no minimum balance to open and no monthly or annual maintenance fees. It has one of the highest savings yields on the market (currently 4.81% APY on balances above $1,000) and FDIC insurance up to $250,000 through Upgrade’s banking partner, Cross River Bank.
You can open and fund an Upgrade Premier Savings account without a corresponding checking account with Upgrade. In addition to its checking account, Upgrade also offers credit cards and personal loans.
What Sets the Upgrade Premier Savings Account Apart?
The Upgrade Premier Savings account stands out for a few reasons, not all of them good:
Very high yield on eligible balances. Upgrade Premier Savings has an industry-leading yield on eligible balances. As long as you can meet the minimum balance requirement, it’s difficult to do better.
No fees or minimums to open or maintain. You can fund your new Upgrade Premier Savings Account in any amount, and there’s no ongoing maintenance fee to worry about.
Minimum balance required to earn interest. You do need to keep at least $1,000 in your account to earn interest on the balance. Otherwise, your interest rate drops to zero on all balances.
Key Features of the Upgrade Premier Savings Account
The Upgrade Premier Savings Account is a basic (if generous) savings account, but it has some features and capabilities worth spelling out in detail.
Account Yield
Upgrade Premier Savings pays 4.81% APY in any statement cycle during which you maintain a balance of $1,000 or more. The interest rate applies to the whole balance, not just the portion above $1,000.
If your balance drops below $1,000 in a statement cycle, you earn no interest on the entire balance for the period. So it’s critical to keep at least $1,000 in your account at all times.
Account Fees & Minimums
This account has no monthly or annual maintenance fees. There’s no minimum to open and fund an account either. But because you earn no interest if your balance drops below $1,000, that’s the effective minimum balance.
Transfer Limits
Upgrade sets inbound and outbound transfer limits on all Premier Savings accounts. The actual limits vary by customer and may depend on your creditworthiness — Upgrade doesn’t explain how they’re set. But they always fall within these ranges:
Between two and seven inbound transfers during any seven-day period
Between $2,000 and $15,000 in total inbound transfer dollar value during any seven-day period, regardless of the number of transfers
Between $2,000 and $15,000 in total outbound transfer dollar value during any seven-day period
There’s no limit on the number of outbound transfers you can make as long as you don’t exceed your allotted dollar value during any seven-day period.
Ownership Type
Upgrade allows only individual account holders. You can’t open a Premier Savings account jointly with a spouse, domestic partner, or anyone else.
Mobile Features
Upgrade has a robust mobile app and mobile banking dashboard that can do anything the regular online dashboard can. However, the Premier Savings account lacks some mobile-friendly features common in other online bank accounts, such as mobile check deposit and person-to-person transfers.
Deposit Insurance
Upgrade Premier Savings offers FDIC insurance through its banking partner, Cross River Bank. Insurance covers balances up to $250,000.
Pros & Cons
Upgrade Premier Savings has some clear advantages and disadvantages. The upsides include no maintenance fees and an excellent yield, while the downsides include a minimum balance to earn interest and limited options to access your funds.
Excellent yield
No minimum balance to open
No maintenance fees
Minimum balance required to earn interest
No ATM card or mobile check deposit
Transfer limits may affect usability
Pros
Upgrade Premier Savings offers one of the best yields in the business and has no maintenance fees or minimums. It’s part of a much larger universe of Upgrade financial products too.
Industry-leading yield. This account’s yield (currently 4.81% APY when you keep a balance of $1,000 or more) is better than the vast majority of competing savings accounts.
No minimum balance to open. You can open this account with any amount of money, though keep the minimum interest-earning balance in mind.
No maintenance fees. Upgrade charges no monthly or annual maintenance fees on this account.
Easy to manage online. Upgrade Premier Savings is a straightforward savings account that’s easy to manage online with the Upgrade online dashboard or mobile app.
Links with a suite of other financial accounts and products from Upgrade. Premier Savings isn’t the main attraction at Upgrade. It got its start as a personal loan and credit line provider and now offers a slew of credit cards alongside those products. It has a generous rewards checking account as well.
Cons
Upgrade Premier Savings falls short on its minimum balance to earn interest, limited withdrawal and deposit options, and money transfer limits.
$1,000 minimum balance to earn interest. You need to keep at least $1,000 in your account to earn interest. If your balance falls below that threshold, you earn no interest for the entire statement period.
No ATM card or mobile check deposit. Electronic transfer is the only way to deposit or withdraw funds into or out of your Upgrade Premier Savings account. This might not be a deal-breaker, but it would be nice to have a mobile check deposit option at least.
Transfer limits could impact your ability to move money. Upgrade’s inbound and outbound transfer limits probably won’t affect your day-to-day money management, but they could come into play if you need to move a lot of money at once — for example, to make a down payment on a new house.
How the Upgrade Premier Savings Account Stacks Up
Before you apply for the Upgrade Premier Savings account, see how it compares to another popular option with a two-tiered interest rate: the Platinum Savings account from CIT Bank.
Upgrade Premier Savings
CIT Bank Platinum Savings
Maximum Yield
4.81% APY
Up to 4.75% APY
Minimum Yield
None
0.25% APY
Minimum Balance
$0
$100
Minimum Interest Balance
$1,000
$5,000
Maintenance Fee
$0
$0
Upgrade Premier Savings has a slightly better maximum yield and a lower balance threshold to earn that yield, so it’s a better fit for most users. CIT Bank Platinum Savings only makes sense if you want to earn at least some interest when your balance is below the high-yield threshold.
Final Word
The Upgrade Premier Savings account is one of the best high-yield savings accounts on the market right now. That’s because it does what you’d expect a high-yield savings account to do: pay an extremely competitive interest rate on eligible balances.
Otherwise, Upgrade Premier Savings isn’t especially notable. And its minimum balance to earn interest is a problem for savers with limited cash. But once you have at least $1,000 to put away, it’s difficult to do better.
The Annual Percentage Yield (“APY”) for the Premier Savings account is variable and may change at any time. There is no minimum balance to open your account, but you will only earn the APY on days when the closing balance of your Premiere Savings account is or exceeds $1,000. On days where the account closing balance drops below $1,000, the APY will be 0%.
There are no account fees, overdraft fees, or transfer fees associated with Premier Savings accounts.
Upgrade is a financial technology company, not a bank. Premier Savings accounts are provided by Cross River Bank, Member FDIC. Upgrade VISA® Debit Cards issued by Cross River Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Personal Loans made by Upgrade’s bank partners. Personal Credit Lines are issued by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. The Upgrade Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.
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.
The Verdict
Our rating
Upgrade Premier Savings Account
The Upgrade Premier Savings account has a higher yield than the vast majority of high-yield savings accounts. If you can clear the $1,000 minimum balance threshold to earn interest and don’t mind adding and withdrawing funds via electronic transfer, it’s a superior online savings account.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
If you have a decent amount of cash that you don’t anticipate needing right away, moving it from your savings account to a certificate of deposit (CD) could boost your return.
Thousands of banks and credit unions offer CDs, so finding the best CD for your needs can feel like an overwhelming task. Fortunately, one of the highest CD rates right now comes from Quontic Bank, a low-key, mostly online bank that offers industry-leading yields on savings accounts and CDs.
Quontic Bank’s CD lineup has a lot of advantages: a solid range of term lengths, tremendous yields, and low minimums. But it does have some downsides, so don’t rush out to open one without considering the good and the bad.
Quontic Bank Certificates of Deposit: Terms & Yields
Quontic Bank offers five CDs with terms ranging from six months to five years. Each has a yield well above the national average for its term, with the six-month and one-year CDs leading the pack:
Term
Yield
Six months
5.05% APY
One year
5.15% APY
Two years
4.50% APY
Three years
4.40% APY
Five Years
4.30% APY
Unlike some online banks, Quontic doesn’t offer any no-penalty CDs. If you cash out your CD before maturity, you have to pay a stiff financial penalty that reduces your interest earnings and could even cut into your initial investment.
What Sets Quontic Bank CDs Apart?
Quontic Bank CDs stand out to would-be buyers in several ways, both good and bad:
High yields. Quontic Bank’s CDs have some of the best yields on the market right now. Since yield is a critical consideration for most CD buyers, this is a big selling point.
Low minimum deposit. All Quontic CDs require just $500 to open. That’s a lower minimum than many competing banks, which may demand $1,000, $2,000, or more for a new CD.
Variety of term lengths. Quontic’s CD terms range from six months to five years, with three intermediate terms in between. That’s enough variety to build a multi-CD ladder and take advantage of changing interest rates.
Stiff early withdrawal penalties. Quontic’s early withdrawal penalties are well above average, which is a bad thing. They range up to 24 months’ interest on longer-term CDs and are calculated in such a way as to result in principal loss if you withdraw very early in the term.
Requires a phone call to cash out or make changes. Like most banks, Quontic automatically renews maturing CDs. Unlike most banks, it requires you to call its customer service department if you want to cash out or make changes at maturity (such as deposit more money or change the term length).
Key Features of Quontic Bank CDs
Before you apply for a Quontic Bank CD, make sure you understand how they work and how they differ from some other banks’ CDs.
FDIC Insurance
All Quontic Bank CDs carry FDIC insurance up to the statutory limit, currently $250,000. This limit applies cumulatively to all Quontic CDs held in your name.
How to Open & Fund a New CD
You can open a new Quontic CD online. The application process is all-digital and takes just a few minutes.
Once open, you can fund your Quontic CD via:
Instant transfer from an existing Quontic checking or savings account
Electronic transfer from an external bank account, which can take one to three business days
How Interest Is Calculated & Credited
Quontic compounds your interest payments daily. Each month, Quontic adds all the interest earned in the previous month to your CD’s balance. If you prefer, you can have the interest deposited in a separate bank account.
Early Withdrawal Penalties
All Quontic CDs come with early withdrawal penalties. You can’t make partial withdrawals under any circumstances, and if you close your CD before the term ends so that you can withdraw your entire investment, you have to pay a significant financial penalty.
The penalty depends on the CD’s term:
Under 12 months: All the interest you would have earned during the full term
One to two years: One year’s interest
Two years and longer: Two years’ interest
These penalties apply regardless of when you close the CD, which means they may result in some principal loss. For example, because the six-month CD’s early withdrawal penalty is six months’ interest, any early withdrawal forces Quontic to take some principal on top of all the interest earned to date.
CD Maturity & Renewal
Quontic CDs automatically renew at maturity. The CD term remains the same, and the new principal is the original CD’s principal plus any accrued interest you haven’t already withdrawn.
Closing or Making Changes to a Maturing CD
You have a 10-day grace period to close or make changes to a maturing CD. The grace period begins on the day after the maturity date.
If you do nothing during the grace period, the CD automatically renews. If you want to close the CD and withdraw your investment without penalty, or you want to make changes like depositing additional funds or changing the CD’s term, you need to call Quontic Bank and give your instructions. You can’t close your CD or make other changes online.
Pros & Cons
Quontic Bank CDs have some upsides and some downsides. Here they are at a glance.
Excellent yields on all CDs
Low minimum opening deposit ($500)
Terms up to five years
Excessive early withdrawal penalties
Inconvenient process to change or cash out at maturity
Advantages
Quontic Bank’s CDs offer excellent yields, a low minimum deposit, straightforward opening process, and an attractive range of terms.
Industry-leading yields. Quontic Bank CDs have uniformly excellent yields ranging from 4.30% APY at the low end to 5.15% APY at the high end. They’re all well above average for the corresponding term length.
Terms range from six months to five years. Quontic’s CDs range from six months to five years. Six months qualifies as short-term, while five years is definitely long-term (though not the longest term available). That’s more than enough of a range to build a multi-CD ladder.
Low minimum deposit for all terms. You need just $500 to open a Quontic Bank CD. That’s a far lower minimum deposit than some other banks require.
Easy to open and fund. You can open a Quontic Bank CD online in just a few minutes. If you have an existing Quontic Bank account, you can fund your new CD immediately, or wait a business day or two for an external transfer.
Disadvantages
Quontic Bank’s CDs fall short in a couple areas: stiff early withdrawal penalties and an inconvenient process for redeeming or changing maturing CDs.
Very high early withdrawal penalties. Quontic Bank’s early withdrawal penalties are well above average by industry standards. On the six-month and one-year CDs, they’re so tough that you’re certain to lose some principal if you cash out early.
Confusing, inconvenient process to redeem or change maturing CDs. You need to call Quontic Bank to cash out or make changes to maturing CDs. That’s inconvenient and conflicts with Quontic’s otherwise all-digital approach to banking.
How Quontic Bank CDs Stack Up
Quontic Bank isn’t the only online bank that offers high-yield CDs. Before you open a CD with Quontic, see how its lineup and terms compare with another popular choice: Discover Bank.
Quontic Bank
Discover Bank
Term Lengths
Six months to five years
Three months to 10 years
Yields
Up to 5.15% APY
Up to 4.75% APY
Minimum Deposit
$500
$2,500
Penalties
Up to 24 months’ interest
Up to 24 months’ interest
Renewal
Automatic
Automatic
Close or Change
Must call in
Can do online
Overall, Quontic Bank is a better choice if you don’t have a lot of cash to invest in a CD and you’re seeking the highest possible interest rates. Discover makes more sense if you want a very short or very long CD term or if you don’t ever want to deal with a human at the bank.
Final Word
Quontic Bank offers excellent CD yields across a relatively wide range of terms. Its minimum opening deposit is low and the process for opening and funding a CD is super-easy.
That doesn’t mean Quontic Bank is the perfect source for all your CD needs. It has stiff early withdrawal penalties and an annoying process for cashing out or changing maturing CDs.
With so many other choices out there, you might decide Quontic’s drawbacks outweigh its advantages. Or you might not. All in all, I’d say there’s more to like about Quontic than not, but it’s not perfect for everyone.
The Verdict
Our rating
Quontic Bank CDs
Quontic Bank has a better lineup of CDs than most other banks and is generally customer-friendly, with low minimum deposit requirements and an easy account opening process. But watch out for stiff early withdrawal penalties and an inconvenient process for cashing out or changing maturing CDs.
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.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
The sudden collapse of Silicon Valley Bank in March 2023 was a sobering reminder that even the biggest banks can fail — and potentially take their customers’ deposits with them.
The federal government stepped in to cover Silicon Valley Bank’s customers’ deposits, preventing large-scale deposit losses. But because SVB’s failure occurred in part because it mismanaged its customers’ deposits, the ordeal got regular people asking: What do banks and credit unions actually do with our money?
The short answer is pretty simple and probably not too surprising: Banks mostly use your money to make more money for themselves. There’s more to the story, though. And exactly how banks use deposits to make more money is an important consideration when choosing a bank and assessing how safe your deposits really are.
What Do Banks Do With Your Money?
Banks keep a relatively small amount of deposits accessible. This portion is known as a cash or capital reserve or sometimes fractional reserve.
Until March 2020, federal regulators required banks to maintain specific minimum reserves to cover withdrawal requests and offset possible losses on loans and other investments. The Federal Reserve managed a three-tiered system that set reserve requirements as a percentage of net transaction value. The Fed still updates the tiers because the laws requires it to do so, but it no longer enforces compliance.
Banks still keep some cash in reserve to cover withdrawal requests, but the government no longer requires them to maintain a specific minimum.
Banks use most of their deposits to fund loans and investments they hope will turn a profit. They aim to earn more on these loans and investments than they pay out in interest on deposits.
While they maintain detailed accounts of their customers’ funds, banks treat cash held in most common account types more or less the same. Whether you have a checking account, savings account, money market account, or CD — or all four — your bank keeps some of the cash in reserve and uses the rest to make money.
How Bank Reserves Work
In the old days, reserves would be literal cash in bank vaults.
Banks still keep some physical cash on hand, but a lot of their spare money sits in special accounts with the U.S. Federal Reserve Bank. That’s safer and more secure, anyway, and in an increasingly cashless world, it’s more practical too.
How Lending & Investing Work
The exact proportion of total deposits a given bank lends depends on factors like its lending strategy, financial health, economic conditions, and operating expenses.
However, under normal circumstances, banks try to lend as much of their cash as possible while still fulfilling their reserve requirements, which for practical reasons they likely still have internally whether the government enforces it or not. That’s how most banks make their money.
“Lend” can mean many different things, including some less obvious to nonexperts. In fact, it’s more accurate to think of a bank’s lending activities as part of its broader investment strategy. That’s how the bank sees it.
And while many banks stick to investing in various types of consumer and business loans, some also invest in more exotic (and risky) assets like public and private company stock, venture capital funds, and commercial real estate.
These common bank lending activities rely on customer deposits:
Issuing credit cards: Credit cards are super-profitable for many banks, from big names like Capital One to small players you’ve probably never heard of. That’s because credit card interest rates are much higher than the rates banks pay on even the highest-yielding savings accounts and CDs.
Making unsecured installment loans and lines of credit: Many banks make good money on unsecured personal loans and lines of credit. Because the bank can’t seize an asset to cover losses on these loans, they’re relatively risky and carry higher interest rates than mortgages or auto loans.
Making secured installment loans and lines of credit: These include mortgages, vehicle loans, and home equity loans and lines of credit. They generally have lower interest rates than unsecured loans and lines because they’re less risky for banks, but they still can be very profitable.
Providing financing to businesses: Many banks and credit unions offer financing to businesses and nonprofits. Community banks are particularly active in this space and tend to serve businesses in their own communities — an important consideration for bank customers who want to help local entrepreneurs indirectly.
Buying bonds: You can expect predictable interest payments and eventually the return of your initial investment in bonds. Banks appreciate bonds’ relative safety and predictability, though they’re not risk-free — Silicon Valley Bank failed in part because it made bad bond bets.
How Do Banks Protect Your Money?
When you open and fund a deposit account, you give your bank or credit union the right to use your deposits as it sees fit. But you’re still the rightful owner of that money and can withdraw it pretty much on demand, allowing for reasonable restrictions and penalties that depend on the account type and are spelled out in the deposit agreement.
So your bank or credit union is obligated to protect your money and ensure it’s available for withdrawal when you need it. It does this in several ways, some voluntary and others required by law or regulation.
Capital Reserves
Although the Federal Reserve eliminated specific capital reserve requirements in March 2020, every bank keeps a significant amount of its customers’ money in cash and cash equivalent, like short-term Treasury notes.
Capital reserves don’t directly protect your money. Your bank doesn’t maintain separate reserve accounts for each customer account. But it does know about how much customers withdraw in a typical day and ensures it has more than enough on hand to cover those requests.
In an even less direct sense, your bank’s reserves protect your money by ensuring the bank can pay its bills and keep operating normally.
Daily Withdrawal Limits
Banks can’t keep all their customers’ money in reserve. With no spare cash to make loans, they’d go out of business in short order. In fact, banks want to keep as little cash in reserve as possible while still covering operating expenses and expected withdrawals.
To manage the tension between their obligation to fulfill withdrawal requests and their prerogative to make money, banks often set daily withdrawal limits on all or certain accounts.
These limits tend to be lowest for cash transactions. For example, you might be limited to just a few hundred dollars per day in ATM withdrawals. They’re usually higher for electronic and wire transfers — typically $50,000 or more.
Deposit Insurance Coverage
State and federal banking regulations require banks and credit unions to carry deposit insurance.
The Federal Deposit Insurance Corporation provides federal deposit insurance to banks, while the National Credit Union Administration provides federal deposit insurance to credit unions.
For both, the maximum deposit insurance limit is $250,000 per account ownership type, which means you have full insurance on up to $250,000 across all individual accounts with the same bank and full insurance on another $250,000 across all joint accounts in that bank. (There are other account ownership types, but individual and joint are the most common.)
In addition to directly protecting customer deposits, deposit insurance helps prevent bank runs by providing assurances that customers won’t lose insured funds if the bank fails.
When that happens, the FDIC steps in and temporarily takes control of the bank, with the short-term goal of either finding another bank to assume its deposits or to sell off its assets piecemeal. In either case, deposit insurance kicks in and protects customer deposits.
This process has proven extremely reliable over the years. Since the FDIC’s inception in 1933, no bank customers have lost funds under the FDIC insurance limit. Uninsured losses have occurred, but in recent years, the federal government has gone to extraordinary lengths to protect deposits above the insurance limit as well. Despite well over 90% of its deposits being uninsured, Silicon Valley Bank didn’t lose a cent of its customers’ money when it failed.
Final Word
Your bank probably uses most of the money in your accounts to fund loans to other customers. It might also buy government or corporate bonds with your money. It reserves a small slice of your cash to cover withdrawal requests and operating expenses.
That’s pretty much it. The details can get really convoluted, but you don’t need a finance degree to gain a basic understanding of how banks use customers’ money. And if you’re like me, you probably find that oddly reassuring.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
When you choose a bank for your daily checking and savings needs, you can choose between a national bank, a smaller regional bank, credit unions of varying sizes, and even online banks and financial technology companies.
Since early 2023, when Signature Bank and Silicon Valley Bank both experienced failures after customers pulled out large amounts of money during bank runs, banking customers may feel more comfortable choosing a national bank.
Although the U.S. government took extraordinary measures to protect the assets of SVB and Signature Bank customers, and deposits held in the accounts were FDIC insured, many customers were still rightfully concerned about gaining access to their money in a timely manner.
After the banking crisis of 2008, the Federal government declared banks like JPMorgan Chase, Bank of America, Citibank, and Wells Fargo as “too big to fail.” But these aren’t the only national banks or credit unions available.
You might think that smaller online banks may have lower fees, while small local banks are known for friendly and responsive customer service. But the national banks on this list blend the best of all worlds: low fees, high marks for customer satisfaction, ways to avoid overdraft fees, convenient ATM networks, and a variety of banking products.
16 Best National Banks
Here are the 16 best national banks that offer exceptional services, excellent customer support, and innovative banking solutions to meet all of your financial needs.
1. SoFi – Best for Digital Banking & High Yields
SoFi became a nationally chartered online bank in 2022, after acquiring Golden Pacific Bancorp, Member FDIC. Originally known for its vast array of loan products, including private student loans, today SoFi has a combination checking and savings account, or a cash management account, with no monthly service fee.
SoFi also has no minimum balance requirements, no overdraft fee, and overdraft protection up to $50 with qualifying direct deposits each month. You can bank for free at any of 55,000+ fee free Allpoint ATMs nationwide.
As an online bank, SoFi offers higher interest rates than you may find at brick and mortar banks. Earn up to 4.20% APY on your savings account balance and 1.20% on money in your checking account. When you use your SoFi debit card at select local businesses, you can earn up to 15% cash back.
SoFi offers two tiers of accounts: SoFi and SoFi Plus. To qualify for the “freemium” SoFi Plus membership, bank customers must have qualifying direct deposits. Plus, when you sign up before December 31, 2023, you can earn a cash bonus of $250 when you set up direct deposits of $5,000 or $50 with a direct deposit as low as $1,000.
SoFi Plus members receive loan rate discounts, bonus rewards, access to special entertainment events and more, making SoFi a unique company when it comes to online banks.
2. Discover Bank – Best for Cash Back
Discover may be best known for cashback and rewards credit cards. But its online banking products are some of the best you’ll find among national banks.
With no monthly fees and no minimum balance, your Discover Cashback checking account pays 1% cashback on up to $3,000 worth of debit card purchases monthly. You’ll never pay overdraft charges, and you can withdraw cash at a network of 60,000+ fee free ATMs.
You can qualify for overdraft protection by linking your Discover Bank savings account. Discover Savings pays a high 3.90% APY with no minimum deposit required.
Other Discover Bank deposit accounts include CDs with terms from 3 months to 10 years, and a money market account that pays 3.80% APY for balances under $100,000 and 3.85% on balances $100,000 and up.
For questions or help with your account, you can reach a U.S.-based customer service representative for Discover Bank by phone, 24/7/365.
3. Chase Bank – Best for Credit Card Rewards & Referral Bonuses
As the world’s largest national bank, JPMorgan Chase Bank doesn’t need to do much to entice customers. People will choose Chase based on its name, reputation, and more than 4,700 convenient branch locations across the U.S.
However, Chase happens to have one of the best bonuses for new customers and a generous referral bonus program when existing customers refer their friends. This, coupled with a robust and easy-to-use mobile app and a variety of checking, savings and investment services, puts Chase on our list of top national banks in the U.S.
Chase is currently offering new Chase Total Checking customers a $200 bonus when they open a new account and set up direct deposit within the first 90 days.
New or upgrading Chase Private Client customers can earn a $3,000 bonus with a deposit of $500,000 or more within the first 45 days of account opening. Deposits of $150,000 to $249,999 earn $1,000 and cash deposits of $250,000 to $499,999 earn $2,000. You must keep the money in your J.P. Morgan Wealth Management or JPMorgan Chase deposit accounts for 90 days to qualify.
In addition to Chase Total Checking, the bank’s most popular checking account, and Private Client services, Chase also offers other checking and savings accounts.
Chase Secure Banking has a $4.95 monthly fee and no overdraft fees. Chase Premier Plus Checking offers a few added benefits beyond Chase Total Checking, including ATM fee rebates up to four times per statement cycle, a linked personal checking account with no monthly fees, and a 0.01% interest rate on balances.
Chase also offers bank accounts for kids, teens, and college students, as well as CDs, savings and money market accounts, mortgages, loan products, and a full array of top-rated rewards credit cards.
If you have multiple Chase accounts, it’s easy to manage them all within the mobile app.
4. Chime – Best for Building Credit
Chime is a financial technology company backed by Stride Bank, Member FDIC, and Bancorp Bank, Member FDIC. It is not a bank, itself, but offers some of the same features, including online banking, a debit card, and direct deposit up to two days earlier than some other banks.
Chime has no monthly service fee, no overdraft fee, and no minimum balance requirements. For customers who need a little boost to make it from paycheck to paycheck, Chime offers fee-free overdraft up to $200 through the SpotMe5 program and a credit builder secured Visa credit card with no annual fees, interest or minimum security deposit.
Use your Chime debit card at any of 60,000+ fee free1 ATMs in the Allpoint, MoneyPass or Visa Plus Alliance ATM networks. Out of network ATM fees may apply, otherwise.
You can qualify for Chime’s SpotMe program with a single direct deposit of $200 or more during any monthly statement period. If you process a transaction that would put you into overdraft, Chime will accept the transaction even if it puts your balance into the negative by up to $200.
The Credit Builder Secured Visa card carries the same requirements of a $200 monthly minimum direct deposit. You can build your credit and raise your credit score with responsible use of the card.
5. Citi® – Best for Large Cash Deposits
The third of the four largest national banks in the U.S. based on assets, Citi, owned by Citigroup, is best for high net worth customers or those with large cash deposits divided among Citi checking, savings, and other accounts.
Currently, you can earn a generous cash bonus of $200 to $2,000 when you open a qualifying Citi checking account and meet specific minimum opening deposit requirements. Your bonus will be determined by your account balance on the 20th day after opening the account. Funds must remain in the account for an additional 60 days after the 21st day.
Citi offers multiple checking accounts to meet various customers’ financial needs, all with monthly fees that are easy to waive if you hold the required minimum balance. The bank accounts include:
Citibank
Citi Priority, which includes travel perks and access Citi Personal Wealth Management advisors
Citigold, relationship banking and investment services
Basic Banking and ATM access
Access Account, a debit account with no paper checks
For the Basic Checking account, you’ll need to maintain a $1,500 minimum balance to waive the fees. The other accounts have larger minimum balance requirements to avoid monthly maintenance fees and take advantage of other perks, up to $200,000 for a Citigold account.
All accounts provide access to personal banking at Citi branches and access to more than 65,000 fee free ATMs across the U.S. All accounts except for Basic and Access accounts also have no fees at ATMs outside the Citi network.
Like all the larger national banks on this list, Citi has a full gamut of rewards credit cards, savings and money market accounts, and high-yield CDs.
6. CIT Bank – Best for High Interest Rates
CIT Bank, a division of First Citizens Bank, has earned awards and accolades for customer satisfaction, rated by American Banker as #1 for “delivering the most humanized experience in banking.”
You should be aware that deposits in First Citizens Bank & Trust Company, Member FDIC, are not separately insured. This only matters if you hold more than $250,000 in any single account type, such as checking or savings, in both First Citizens Bank and in CIT Bank.
CIT is the online only banking arm of First Citizens Bank, with high-yield savings accounts, CDs, money markets, and eChecking, all with no monthly fees and no overdraft fees. You won’t pay any ATM fees at CIT Bank machines, and CIT Bank reimburses up to $30 per month when you use out-of-network ATMs.
CIT offers 0.25% APY on checking when you hold more than $25,000 in your account, and 0.10% APY on balances under $25,000. The bank has high interest rates for savings, offering customers a 4.85% APY on balances of $5,000 or more with the Platinum Savings account.
CIT Bank has two other savings accounts as well:
Savings Connect, with a 4.60% APY
Savings Builder, which requires a minimum balance of $25,000 or a $100 monthly deposit to earn 1.00% APY
You’ll need a $100 minimum deposit to open a checking or savings account at CIT Bank.
7. Bank of America – Best for College Students
As the second largest of the best national banks, behind Chase, Bank of America has the full gamut of banking products, with three checking accounts plus a student account, savings, CDs, and investment products.
It’s easy to waive monthly maintenance fees on a checking account with a minimum daily balance, direct deposits, combined balances across eligible linked Bank of America accounts, or by enrolling in their Preferred Rewards programs.
We like the Advantage SafeBalance banking for kids, teens, and college students under 25 years old. They have no monthly fee and no overdraft fees. Teens ages 16+ can have sole ownership of the account.
For everyone else, the bank offers Advantage Plus and Advantage Relationship checking accounts with easy ways to waive the monthly fees with direct deposit or a minimum daily balance.
When you open a new checking account, you can qualify for a $100 bonus when you receive qualifying direct deposits of at least $1,000 within 90 days of opening the account.
Of course, Bank of America also has CDs, and a savings and money market account. Plus you can invest with Merrill. All of these deposit accounts count toward your Preferred Rewards membership.
When you have a combined average daily balance of at least $20,000 for three months, you’ll qualify for the rewards program.
8. U.S. Bank – Best for Military Members & High Balance Savings
U.S. Bank offers the Bank Smartly checking account so you can earn interest on your money. The current interest rate is just 0.01% APY on all checking balances. You’ll pay a $6.95 maintenance fee, but this is waived if you meet minimum deposit requirements or if you are a member of the U.S. military.
You can link your Bank Smartly checking account to a standard savings account or Elite Money Market to earn even more. To avoid fees on your savings account, you’ll want to keep a $300 minimum daily balance or a $1,000 average monthly collected balance. If you are already a Bank Smartly customer, you can enroll in Smart Rewards to waive savings account fees.
The Elite account is better for those with high balances. You can earn up to 4% APY on balances from $25,000 up to just under $500,000.
The appeal of U.S. Bank is in its high ratings for banking satisfaction across the board from customers. U.S. Bank earned accolades for having the best mobile app, the best digital mortgage tools, the best customer service features, and best mobile check deposit capabilities. These factors all contribute to its ranking as a best national bank.
9. Axos Bank – Best Online Bank
Axos is an online only bank with a rewards checking account that delivers up to 3.30% APY, with no fees and unlimited ATM fee rebates for out-of-network ATMs.
To earn the maximum APY, you’ll need to set up direct deposit and Axos Bank’s free Personal Finance Manager for 0.70% interest. Then, open an investment account and take out an Axos personal loan or auto loan and earn another 2.60% annual percentage yield on your checking account balance.
Axos also offers an Essential Checking account with early direct deposit and no fees, and a Cashback Checking account, which gives you 1% cash back on debit card purchases, along with no maintenance fees and unlimited domestic ATM fee reimbursements.
Voted the best online bank by many top personal finance sites, Axos Bank offers more than just high interest, no fee checking.
Axos Bank offers CDs with terms between 3 and 60 months and a savings account with 0.61% annual percentage yield, with interest compounded daily. You can also find personal loans, car loans, mortgages, and investment products.
Like other national banks, Axos Bank provides FDIC insurance up to $250,000 or $500,000 for joint account holders. But you can expand your coverage up to $150 million with Axos Bank InsureGuard+ Savings from IntraFi Network Deposits.
Axos splits up your large deposit into multiple accounts across several banks, each covered up to $250,000. If you are dealing with a substantial amount of cash and want your savings protected at a single bank, Axos may be a good choice for you.
New customers can earn a $100 welcome bonus by opening an account with just a $50 minimum opening deposit.
10. Truist Bank – Best for Relationship Banking & Innovative Savings Perks
Truist Bank is one of the top 10 largest national banks, formed as a merger between BB&T and SunTrust in 2019. Called “the biggest bank you’ve never heard of” by CNN Business, Truist holds assets of $574 billion and has been growing steadily since the merger.
Truist offers checking and savings accounts, CDs, and credit cards. Truist checking and savings customers can earn perks and benefits. This includes access to Long Game, a savings game app that lets you earn cash when depositing into your Truist savings account. It also includes bonus rewards on your Truist credit cards.
Truist has four levels of relationship banking in its Truist One checking account. This means the more you deposit, the more perks you will receive, up to a 50% loyalty bonus on Truist credit cards, and a discounted annual fee for a Delta SkyMiles debit card. Benefits for relationship banking begin at $10,000 in combined average monthly balances for Truist deposit accounts.
Your Truist checking account has a $12 monthly fee, which is easy to waive with $500 or more in direct deposits each month or a $500 minimum balance across all Truist deposit accounts. Truist personal loan, mortgage or credit card customers also pay no fees on their Truist checking account.
You can also waive the monthly fee with a linked Small Business checking account or if you are a student under the age of 25. You’ll need a $25 minimum opening deposit for a Truist One checking.
Customers with lower income or just getting started establishing their finances can benefit from Truist Confidence checking and savings accounts. The account has just a $5 monthly maintenance fee, which is easily waived.
11. Capital One – Best for High Interest Rates at a Brick and Mortar Bank
Like Chase Bank, Capital One is well known for its top-rated rewards credit cards. The company is also one of the best national banks with a savings account and CDs offering interest rates higher than the national average.
Capital One Performance 360 savings has a 3.90% APY, no monthly maintenance fees, and no minimum deposit to open your account. A Capital One 360 Performance checking account, similarly, has no monthly maintenance fee, overdraft protection through your linked savings account, and early direct deposit.
You can bank with no fees at a network of 70,000+ ATMs nationwide, and can deposit cash easily at CVS retail locations. Although you must open your Capital One Performance account online, you can receive personalized service and deposit cash at any Capital One bank branches or Capital One Cafes.
12. PNC Bank – Best in East and Southwest
PNC Bank is a large, national bank with branch locations across 29 states. Most branches are in the east, south, and southwest, although you will also find branch locations in some Midwest states.
PNC Bank’s online checking account is called Spend and it links to the PNC VirtualWallet. You can add a savings account, called Reserve, or upgrade to the Performance Select product with two tiers of savings and double layer overdraft protection.
When you set up your VirtualWallet with PNC Bank and open your Spend account, you can earn a $50 bonus.
Combining your Spend account with a PNC Bank Reserve account yields even more benefits. Earn a $200 bonus when you qualify. Finally, if you open a Performance Select VirtualWallet, you could earn $400.
Each account comes with a low monthly fee that is easily waived through qualifying monthly direct deposits or by meeting minimum balance requirements.
13. Wells Fargo – Best for Checking Account Options
Wells Fargo, one of the “big four,” is the fourth largest of the best national banks in the U.S. It is known for having many convenient bank locations, with 4,700 branch locations.
The vast number of branches across the country puts it top on our list for in-person banking and customer satisfaction.
Plus, we also rated it best for various checking account choices for everyone from children to retail investors.
Like the other national banks on this list, Wells Fargo has checking, savings, and CD accounts. The bank has four checking account options for consumers at various stages of their financial lives:
Clear Access Banking, with no overdraft fee and a low $5 monthly fee, waived for teens and young adults ages 13 to 24
Everyday Checking, the most popular bank account, with optional overdraft protection
Prime Checking, offering discounted interest rates for loans and higher interest rates for linked CDs and savings accounts
Premier Checking, a relationship banking service with 24/7 support and discounts on investing services
It’s easy to waive the $10 fee on Everyday Checking with a $500 minimum daily balance or $500 in monthly direct deposits. Waive the $25 fee on your Prime checking with $20,000 in linked balances. Similarly, your Premier Checking account will be free with $250,000 in linked balances, including investments with the bank’s Advisors.
You’ll need a $25 minimum opening deposit to open your account.
14. Ally Bank – Best Online Only Bank for Savings
Ally Bank is widely recognized as one of the best national online banks. It has very few fees, including no maintenance fee, no overdraft fee, and no ACH fee (even on expedited transfers). Plus, you’ll earn interest of 0.25% in your checking account and 3.85% APY on savings, including money you have allocated into various buckets.
We rated Ally Bank as the best online only bank for savings, not just because of the high interest rate, but because it offers so many ways to manage your money and ramp up your savings efforts.
You can set up recurring transfers into your savings account for specific goals or just to build up your emergency coffers. You can choose to round up transactions made with your Ally Bank debit card, or even electronic payments and checks. When Ally Bank finds at least $5 in “round-up” savings, it will be transferred automatically to your checking account.
Finally, Ally Bank analyzes your checking account periodically to reveal extra funds that are “safe to save.” Ally Bank automatically transfers that money for you. But you can transfer it back whenever you’d like.
In addition to these savings benefits, Ally Bank lets you access your money with your debit card with no fees at any of 43,000+ Allpoint ATMs. The online bank also refunds up to $10 in fees charged by out-of-network ATMs.
You can avoid stress and overspending with the Overdraft Transfer Service, which automatically transfers money from your Ally Bank savings account into checking. If you exceed six transfers or six savings withdrawals per month, Ally Bank will reimburse those fees, too.
You can also apply for CoverDraft℠ Coverage, which will cover up to $250 in charges that would put your account in the negative. You’ll qualify 30 days after you deposit at least $100 into your checking account. If you receive qualifying direct deposits of at least $250 two months in a row, you can increase your coverage to $250.
15. TD Bank – Best for Overall Banking Satisfaction
TD Bank, deemed America’s most convenient bank for its number of branches, branch hours and excellent customer service, blends the best of brick and mortar banks with easy online banking.
Most TD Bank locations are open seven days a week, including Sundays, with extended hours beyond what most brick and mortar banks provide. Most TD Bank branches are located across the East Coast, with locations in 15 different states and Washington, D.C.
TD Bank is the 7th largest bank in the U.S. based on deposits, with 1,668 branch locations nationwide. You can also reach customer service by phone, 24/7/365, which earns TD Bank high marks for banking satisfaction.
TD Bank offers six checking accounts for customers in various life stages:
TD Essential Banking
TD Convenience Checking
TD Beyond Checking
TD Simple Checking
TD 60 Plus Checking
TD Student Checking (for ages 17 to 23)
Currently, TD Bank is offering sign-on bonuses for new customers who open a TD Beyond or TD Convenience bank account. You’ll need a qualifying direct deposit (or more than one) totaling $2,500 within the first 60 days to earn $300 with TD Beyond, and a direct deposit of just $500 within the first 60 days to earn $200 with TD Convenience.
16. Schwab Bank – Best for Investors
Schwab may be best known as an investment service, but the bank was rated highest in banking satisfaction with checking accounts from J.D. Power & Associates four years running.
If you have a Schwab investment account, or are considering opening one, Schwab could be the best choice in banking for you.
The Schwab Bank Investor checking account has no foreign transaction fees, no minimums, and unlimited ATM fee rebates. Plus, earn 0.45% annual percentage yield on checking. Schwab’s savings account offers 0.48% APY.
Schwab also offers exceptionally high interest rates for CDs, with up to 5.40% APY and terms as short as 30 days. You’ll receive FDIC protection exceeding the federal maximum because you can purchase CDs from multiple banks, all through Schwab investment.
Methodology: How We Chose the Best National Banks
We evaluated a variety of banks and credit cards, taking into consideration the:
Variety of products
Interest rates
Monthly fees
ATM fees and ATM fee reimbursement
Branch locations and number of branches
Minimum deposit requirements
Fraud protection and security
We also looked at consumer reviews, and drew on the general reputation of each bank to find the best national bank.
Finding the Best National Bank
Now that we’ve explored the specifics of the best online banks and brick and mortar banks nationwide, you probably still have questions about which one is really the best national bank.
Let’s compare the three largest in the U.S. based on number of branches, interest rates, and overall banking satisfaction.
Chase vs. Wells Fargo
For the largest nationwide bank, Chase offers excellent banking satisfaction with an A+ rating from the Better Business Bureau, 4,800 branch locations, and an easy and intuitive mobile app. If you are shopping for a bank credit card, Chase also offers some of the best rewards cards available today.
Wells Fargo rivals Chase when it comes to number of branches, with roughly 4,700 locations across the U.S. It’s somewhat easier to waive the checking account fees at Wells Fargo. Wells Fargo offers higher interest rates for savings, with a 0.15% APY compared to Chase’s 0.01%.
Both banks have lower interest rates than you might find at online banks. However, if you are looking for national banks with a solid reputation, many branches, and high marks in banking satisfaction, either Chase or Wells Fargo would be a good choice.
Wells Fargo vs. Bank of America
Bank of America and Wells Fargo are the second and third-largest banks in the U.S. based on assets. BofA only has 4,000 branches compared to Fargo’s 4,700, but BofA boasts more ATMs nationwide.
BofA stands out when you join the Preferred Rewards program because you can waive the fees on your bank account and enjoy perks, bonus rewards on BofA credit cards, and rate discounts on loans.
If you have a large balance or are looking for an investing platform through your bank, BofA may be your best choice. On the other hand, Wells Fargo offers high interest rates on savings and convenient branch locations nationwide.
Common Questions
People have many questions related to whether an online bank is better than a traditional bank or whether a local bank is better than one of the largest national banks. We break it all down here.
Which is better, an online bank or a brick-and-mortar bank?
If you are looking for the highest interest rates and generous rewards programs, you are highly likely to find them at online banks. However, there are some advantages to a brick and mortar bank, including in-person service at local branches, the availability of paper checks, and easy ways to deposit cash in person or at branch ATMs.
You should expect the best national online banks and the best brick and mortar banks to have robust mobile apps, easy-to-waive fees, and fraud protection.
Make sure whatever bank you choose is “Member FDIC,” which means your deposits are insured up to $250,000 per account holder, per account type. That means joint accounts have $500,000 worth of FDIC insurance protection.
Is my money safer in a national bank vs. a regional bank (or a national credit union vs. a regional credit union)?
All banks on this list are Member FDIC, which means they are insured to the maximum allowable limit of $250,000 per account holder, per account type. Credit unions are covered up to the same limits by the National Credit Union Administration.
Many online banks are insured up to $2 million or more. These financial institutions divide cash deposits among multiple partner banks. Each bank insures deposits up to the maximum limit allowed by the Federal Deposit Insurance Corp. Read the fine print to determine your coverage limits when you choose a bank.
Beyond that, your money should be equally safe in a national bank, a smaller bank, or a credit union of any size. Also look for features such as fraud protection, fraud alerts via text, email or in the mobile app, and enhanced website security measures. You should also be able to lock and unlock your debit card in the mobile app if you misplace it or believe it may have been stolen.
What makes big banks different from smaller banks?
By definition, big banks will have larger market capitalization, which represents the total value of a bank’s stocks. Big banks will also hold more assets. For instance, Chase, which is the world’s largest financial institution, holds $3.2 trillion in assets. The second-largest national bank, Bank of America, possesses $2.41 trillion in assets. Larger financial institutions may also have more bank branches.
In many other ways, big national banks and smaller banks are similar, especially today. Customers want specific features and are unwilling to compromise on things like fee-free ATMs, no monthly fees, early direct deposit, and an intuitive mobile app.
How much interest do the best big banks pay?
In general, some of the largest national banks do not have the highest interest rates for savings and very few offer interest earning checking accounts.
Capital One 360 and Discover are two of the best national banks that offer interest on checking. To earn a higher APY with one of the largest national banks, you might want to consider CDs.
Are national banks better than other kinds of banks?
National banks aren’t necessarily better or worse than other kinds of banks. They may have more convenient branch locations, a higher number of branches, and a greater variety of products, but they might also have higher fees. Decide what’s most important to you when you choose a bank.
If you’d prefer to trust your money with one of the largest national banks, with a large market capitalization, high value, and branches nationwide, consider opening your checking and savings accounts with one of the best national banks on this list.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.