A new report from Inside Mortgage Finance revealed that San Francisco-based bank and mortgage lender Wells Fargo snagged 33.9% of the mortgage market in the first quarter of 2012.
It was the biggest residential mortgage market share in recorded history, and comes thanks to a huge drop-off by its closest competitor, Bank of America, whose appetite for mortgages soured in recent months.
BofA stopped both reverse mortgage lending and accepting loan applications from correspondent lenders, which shrunk their presence in a hurry.
Instead of turning out to be the next Countrywide, they shifted their focus toward retail customers instead, focusing on quality over quantity it seems.
But with a waiting list of 90 days to refinance, Bank of America may be focused on other things, such as loss mitigation on all their existing mortgages.
Meanwhile, Wells’ market share increased from 30.1% in the fourth quarter of 2011 to 33.9% from the January to March period, which meant they originated roughly $130.5 billion of the $385 billion total.
No One Else Even Close
Amazingly, no other lender came even close to Wells Fargo. In fact, its closest competitor, Chase, claimed just 10.6% of the mortgage market during the first quarter.
And it dropped off quickly from there, with U.S. Bancorp coming in third with a paltry 5.2% of the market, followed by Bank of America with just 4.2%.
Even more astonishing, Wells Fargo’s market share bested the next seven largest mortgage lenders combined, and its first quarter numbers put it on track to crush last year’s already solid numbers.
The company originated $357 billion in mortgages last year, and if the first quarter is any indication, the numbers should reach somewhere close to $500 billion this year.
Wells also had an unclosed loan pipeline of $79 billion at the end of the first quarter, meaning many more mortgages are set to fund.
Is This Good or Bad for Homeowners?
I would say it’s a little of column “A,” and a little of column “B.”
Wells Fargo is probably the most conservative mortgage lender of its size out there, if not of any size.
Even during the crazy years, which led to the mortgage crisis, they stayed away from low credit score, high loan-to-value lending and no money down mortgages.
And they actually underwrote files, instead of approving everything under the sun.
So it’s probably a good thing that they’re leading the market as opposed to some other company.
Ideally, it means fewer mortgages will go bad, and that could help spur a housing market comeback.
At the same time, with Wells claiming more than one in every three mortgages, it means homeowners may not be shopping around as much as they should be.
As I always say, don’t be the guy or gal that gets a single mortgage rate quote. It’s one of the biggest mistakes you can make.
Their immense market share also means that if anything goes wrong, Wells could put that “too big to fail” mantra to the test.
If home prices slip and the markets crash, Wells would be in a bad position holding all those loans.
Citi today reached an agreement with the Treasury, Federal Reverse, and FDIC, aimed at strengthening capital ratios, reducing risk, and boosting liquidity at the ailing bank.
The Treasury will invest $20 billion in the bank via preferred stock under the Troubled Asset Relief Program (TARP), on top of the $25 billion initially invested.
Citi will also issue an incremental $7 billion in preferred stock warrants to the Treasury and FDIC in exchange for a government guarantee on up to $306 billion in bad mortgage-related securities, loans, and other assets.
The bank and mortgage lender will assume losses on the troubled portfolio up to $29 billion, with the government responsible for 90 percent of losses beyond that level, and Citi assuming the balance.
The Treasury will be responsible for up to $5 billion in losses beyond what Citi covers, and the FDIC will take on up to an additional $10 billion in losses if the Treasury’s are exhausted.
The U.S. government will provide Citi with a template to manage the guaranteed assets, which includes adhering to mortgage modification procedures adopted by the FDIC.
Citi has also been provided “expanded access” to the Fed discount window and primary credit facility to further ease liquidity concerns.
As a result of the agreement, Citi will not pay out a common stock dividend exceeding one penny for the next three years, effective the next quarter.
Shares of Citi (C) climbed $2.17, or 57.56%, to $5.94 in early morning trading on Wall Street.
The company’s shares had fallen as low as $3.05 in the past week as concerns about its viability dragged down the broader market.
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After the recent failures of Silicon Valley Bank and Signature Bank, you may wonder if your money is safe in a U.S. bank or credit union account. And while they’re reasonably rare (fewer than three per year), bank failures do happen.
Fortunately, the United States has systems in place to ensure failed banks don’t lead to the types of personal catastrophes we saw during the Great Depression, including regulatory oversight and a deposit insurance program.
But are those systems enough to protect your hard-earned cash, and can you choose a bank with the lowest risk and greatest odds of long-term success?
What Is Deposit Insurance, & How Does It Safeguard My Deposit?
Federal deposit insurance backed by the U.S. government protects the money in your covered accounts against a bank failure. If your money is in a protected financial institution, and that institution fails, the government covers that money. No depositor has ever lost their government-insured funds.
Its primary purpose is to promote confidence in the banking system, ensure financial stability, and prevent bank runs or mass withdrawals by depositors during times of economic uncertainty.
How Does Deposit Insurance Work?
Banks and credit unions must pay deposit insurance premiums each month just like you do for your car or health insurance. In return, the federal government, through federal agencies known as the Federal Deposit Insurance Company (for banks) and National Credit Union Administration (for federal credit unions), insures all eligible accounts for up to the federally mandated limit.
If a bank fails, the government steps in to ensure you don’t lose your money. Often, it sets up a bridge bank that allows depositors to access their money until someone purchases the defunct bank or customers have had adequate time to find a new bank.
When SVB failed, the government stepped in immediately to create a bridge bank (cleverly called Silicon Valley Bridge Bank) and make funds available to depositors. Sometimes, the FDIC or NCUA deposits funds into an insured bank and creates an account for each insured customer. Other times, depositors receive a check for the insured balance, typically within a few business days of the original institution’s closure. But you may have to file a claim to access your money or get coverage.
Coverage Limits
FDIC and NCUA insurance backs deposits of up to $250,000 per account holder per account type. If you have more than that amount, you must keep your money in different account types or at different banks to ensure full coverage. Or you can opt for a private bank that carries private insurance with higher limits.
Note that joint accounts are covered for up to double the amount an account with only one owner is, even if one of the account holders is a minor.
Also note that some cash-management accounts and neobanks offer coverage in excess of the FDIC limit through a sweep network. They deposit your funds across various insured banks to provide coverage of $2 million or more per depositor.
Eligibility
Both banks and federal credit unions must carry this insurance. Otherwise, they cannot make a claim of being a bank or federal credit union.
For example, neobanks don’t carry deposit insurance and technically aren’t banks. That’s why the fine print on some fintech websites reads, “Not a bank.” Usually, that fine print also shares the name of the bank backing the funds. But if the account isn’t backed by a bank or credit union, tread carefully.
Similarly, while not banks themselves, brokerages and investment apps like Robinhood, person-to-person payment platforms like Paypal or Venmo, and non-bank financial companies often hold deposits in the FDIC-insured accounts of partner banks.
For instance, funds held in Robinhood’s cash-management account are FDIC-insured by the partner bank. Likewise, money in your Paypal savings account is FDIC insured by Synchrony Bank.
Notably, some states require state-chartered credit unions to carry federal insurance. But others have no such requirements. Always look for the FDIC-insured or NCUA-insured logos to ensure your money is safe.
Types of Deposits Covered
Types of accounts insured by the FDIC or NCUA include but are not limited to:
Checking
Savings
Money market deposit accounts
Time deposits like CDs (certificates of deposit)
Negotiable order of withdrawal accounts
Cashier’s checks, money orders, and other official payment instruments issued by a bank
That means you can have up to the maximum insured amount in all those types of accounts, including double in any that are joint accounts with someone else, before another bank is your only option. That said, if you have that kind of money, diversifying your holdings into different banks isn’t a terrible idea.
Note that FDIC and NCUA insurance don’t protect against fraud. Check with your bank, credit union, or financial technology company to determine whether your account has protection against fraud or scams. Read the fine print on your financial institution’s website to see if it carries fraud insurance and the limits.
Other Factors Affecting Deposit Safety
You might still be wondering: Is my bank deposit really safe? While FDIC insurance can give you peace of mind, many factors influence deposit safety.
Diversification of Deposits
Now that you know FDIC and NCUA insurance only covers deposits up to $250,000 per depositor per account type, you may be wondering what you can do to prevent your account from exceeding that amount.
First, you can add a joint account holder to double your coverage. Also, diversifying your deposits across multiple financial institutions ensures coverage for all your money.
Some banks offer what they call “relationship banking” with special privileges for depositors that hold certain amounts in their bank. Typically, you can spread the total amount across deposit accounts. For example, you can have a money market, CD, savings account, and checking account, each with the maximum amount, to meet a steep minimum.
But even if you don’t have that much, you can still benefit from diversifying your funds across accounts. If a bank fails, it may take time to reclaim your deposits through FDIC insurance.
Keeping some emergency funds in a separate bank can help you in a pinch. Even if you’re living paycheck to paycheck, try to save some money in a savings account at a different bank to access in an emergency. Whether your bank fails or you’re a victim of fraud, you’ll be thankful to have a way to access some money.
Banking Regulations & Supervision
The Great Depression made it painfully apparent that banking regulations were necessary to protect regular joes from those whose money and decisions moved the economy.
During that period, the U.S. government introduced the Glass-Steagall Act to do just that. It separated investment activities from commercial banks. The act aimed to protect bank deposits from a crashing stock market and risky investments.
But in 1999, some provisions of the act were repealed to allow universal banking. Some say that led to mergers that created mega-banks while also leading to looser lending standards that eventually led to the 2008 mortgage crisis. The Dodd-Frank Act, introduced in 2010, sought to reintroduce some protections to consumers. Unfortunately, some provisions of the Dodd-Frank Act were repealed a few short years later, leaving us with the system we have today.
As of this writing, several regulatory agencies supervise the internal operations of banks, which (purportedly) help safeguard against bank failure. They are:
The Federal Reserve, which supervises member state-chartered banks and financial holding companies
The Office of the Comptroller of the Currency (OCC), the oldest bank regulatory agency in the U.S.
The Federal Deposit Insurance Company, organized in 1934, and National Credit Union Administration, organized in 1970 to protect deposits up to allowable federal limits
State banking agencies, which conduct bank examinations and construct and enforce regulations at the state level
But a handful of other agencies also help protect consumer rights when it comes to fair banking and credit practices. They are:
The Consumer Financial Protection Bureau, which ensures financial institutions like banks and credit unions treat you fairly
The Federal Trade Commission, which has no jurisdiction over banks or credit unions directly but has authority over companies that may hold your funds in banks, such as mortgage companies and mortgage brokers, and those who may try to get money from your bank account, such as creditors and debt collectors
The Department of Justice, which doesn’t directly enforce laws or oversee any institution but is ultimately responsible for the proper enforcement of those laws and may take banks or credit unions to court on behalf of wronged customers
Bank Stability & Financial Health
Banks don’t hold all your deposits in their vaults. Instead, banks invest the money, ideally in high-yield accounts so they can profit from your deposits while offering you and other customers adequate savings returns.
However, when Signature Valley Bank failed, it had sold off government bonds and taken a $2 billion loss. That’s on top of being overextended in risky tech ventures. Tech investors like Peter Thiel began advising companies to pull their money from SVB as protection, causing a bank run.
That should have been OK — or at least better than it was. At all times, banks should have enough capital to accommodate a certain number of withdrawals. When it failed, SVB did not.
In addition to not being able to field withdrawals, it was the largest of several banks to fail in close succession, sparking fears of a financial domino effect. Then, they announced their intention to raise capital to cover the bonds they just sold off, making matters far worse. It’s a Depression-era-worthy cautionary tale.
But it’s not like there weren’t warning signs. Fortunately, there are several things you can do to evaluate your bank’s safety.
Cybersecurity
We all know that these days, you have to keep your personal information safe — and that every business that has it is one more point of potential compromise.
Banks have more than just your bank account numbers and PINs. They also have information like your Social Security number, contact information (physical and email addresses, phone numbers), and date of birth. If you use online banking to pay bills or have a credit card through the bank, they even have your account numbers for those.
That much information being compromised is a terrifying proposition. Fortunately, there are loads of laws and regulations aimed at protecting that information and your identity in general. To find out if your bank is doing everything it can, compare their cybersecurity methods to the latest available and industry-standard protections.
Those change over time, so if it’s all a little above your head, ask to speak with your bank’s information security officer or a team member. They should be able to answer your questions. You can also look to industry blogs to find out what articles information security officers are reading. For example, RedTeam Security has some handy questions banks should be asking themselves.
Is My Bank Deposit Safe?
Consider a bank or credit union’s reputation, ratings and financial stability. If you choose a bank the government considers too big to fail, you can be assured the U.S. government will do everything in its power to keep the bank up and running. Don’t make assumptions about what size gets a bank on the list. When it failed, SVB was one of the largest banks in the U.S.
However, big banks often have high fees and low interest rates on savings. You may want to choose a smaller bank or credit union instead. That’s when it’s critical to do your research and evaluate the safety of your deposit.
Most banks and credit unions must follow specific standards stipulated by the Federal Reserve and FDIC or NCUA, for capital requirements and liquidity.
Check their financial statements to see if they’re involved in anything too risky or have too many spoons in the same pot. For example, SVB wasn’t terribly diversified. They had a lot of investments in tech. In fact, they were known for it. To make matters worse, those investments were too risky — way riskier than would have been allowed under Glass-Steagall, for example.
You can also use financial ratios to measure a bank’s financial stability. The key figure to judge a bank’s stability, the capital adequacy ratio, looks at the bank’s ability to cover liabilities and respond to credit or operational risks.
Look for a capital adequacy ratio of 8% to 12% (though that number changes over time). Regulators conduct stress tests for capital adequacy and market liquidity and have the authority to shut down financial institutions that don’t meet requirements.
The provision coverage ratio shows the bank’s ability to service its debt. You’re looking for a 70% or higher ratio here.
These numbers are important because they show the liquid assets a bank has available. One reason SVB failed is because it didn’t have enough assets to cover withdrawals.
You can also check a bank’s Standard & Poor’s credit rating, which runs from AAA to D. Avoid any financial institutions with a rating lower than BBB, and lean toward those with an A rating or higher.
Final Word
When you’re choosing a bank or credit union for your hard-earned money, you want to be sure your cash is safe, first and foremost. Once you find a financial institution that provides that peace of mind through its reputation, financial rating, and deposit insurance, you can consider other factors, such as interest rates, fees, and customer service.
In addition to deposit insurance, ensure the bank you choose also has fraud protection insurance. If cybercriminals hack into your account and steal your money, deposit insurance doesn’t cover those funds.
Read bank and credit union reviews to find an account that checks all your boxes for deposit safety, fraud protection and insurance, low fees, and good customer service.
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Dawn Allcot is a freelance writer and content marketing specialist who geeks out about finance, technology, and travel. Her lengthy list of publishing credits include TheStreet, Chase Bank, Forbes, and MSN. She is the founder and owner of Allcot Media Marketing and GeekTravelGuide, where she shares her love for roller coasters, family travel, healthy living and keto foods.
Average two-year fixed mortgage has risen to 6.19%
Lewis, who spoke to the chancellor earlier this week, said he had suggested lenders should be stopped from increasing their profits on the back of interest rates going up.
They should be doing what they can in return, because they’re too big to fail and, now, they don’t want us to fail. They should be doing what they can in return.
So to be increasing profits, increasing margins at this point seems absolutely wrong. It’s profiteering.
If I were the chancellor, and what I said to the chancellor obviously is, I think you need to make sure that they put savings rates up at least with the same rate as borrowing.
Because if you do that, you take money out of the economy and that’s another way of helping inflation that’s less painful than putting lending up.
But also they need to put money aside to help with forbearance. Because even if the idea is we want to, not me, as a state, we want to squeeze borrowers ’til the pips come out so that they haven’t got that much disposable income, then what you don’t want is people defaulting or going into arrears or being repossessed.
https://t.co/svjLtr6O4T
— richard donnell (@richard_donnell) June 23, 2023
June 23, 2023
Joseph Elliott, analysis manager of the Joseph Rowntree Foundation, tweeted:
Kathleen Kerridge, anti food poverty campaigner, on today programme:
"People are cutting back on luxury items and non-essentials.. [luxuries like] side dishes on dinner plates (no peas with fish and chips) branded cleaning products and foods.."
— Joseph Elliott (@J_Elliott94) June 23, 2023
Monthly mortgage costs will depend on the amount borrowed and the interest rate
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.
In spite of bank failures over the past three decades, most banks and credit unions in the U.S. remain secure places to store your money. One of the benefits credit unions and banks offer is easy access to your money.
Account holders can withdraw money quickly from a checking account at a bank branch or with a debit card, often with no fees. They can also find easy access and higher interest rates with a savings or money market account.
Keeping your money in a bank or credit union is considered safe because your money is insured up by the FDIC or NCUA, respectively.
In the event of a bank failure, which occurred more than 100 times during the financial crisis that spanned 2008 to 2012, some of your money is still protected by the federal government. Money in all U.S. banks, including the nation’s five biggest banks, is FDIC insured up to $250,000, per person, per account.
Fortunately, bank failures are less common today. The FDIC reported that the last time an FDIC insured bank failure occurred was October 2020. The FDIC paid out an estimated $18.3 million to account holders.
Credit unions carry similar protection in the form of insurance through the National Credit Union Administration.
How to Choose a Safe Bank Account
You already know that if a bank fails, the federal government will protect a large portion of your funds through FDIC insurance. You can spread your money between multiple checking and savings accounts so that no account holds more than the maximum $250,000 that is FDIC insured.
When you’re looking for the safest bank to open a new bank account, you want to compare other factors, including the bank’s total assets, security measures, fraud liability policies, history, and more.
What We Mean By a Safe Bank
You can see from this list of safest banks in the U.S. that bank security doesn’t always depend on the bank’s size. You’ll find financial institutions ranging from smaller banks to the largest banks on this list.
Bank safety means that the bank uses state-of-the-art security measures to protect your money, including:
Data encryption for their own systems and for online banking
Secure online bill pay
Two-factor authentication
Alerts for unauthorized transactions
Guarantee against unauthorized access
Card locking by app or phone
Direct deposit
We’ll look at these and other safety measures. Then, we’ll explore what makes some of the biggest banks in the U.S. some of the most secure banks and which other banks are keeping pace. Read on to find out: What is the safest bank in the U.S.?
Safety Measures Banks Use
Banks use a combination of training and state-of-the-art technology to keep account holder’s money secure. This includes training bank employees in security best practices and how to respond promptly to fraud alerts. It also includes bank policies, such as $0 fraud liability.
Finally, technology that includes SSL encryption and two-factor authentication can also help to keep your bank account safe during online banking.
12 Safest Banks in the U.S.
The Global Finance “World’s Safest Banks” list highlighted 50 safe banks. Of those, only a handful were based in the U.S. Here are 12 of the safest banks for U.S. customers, based on the Global Finance list.
1. JPMorgan Chase
With a market capitalization of $413.7 billion and a balance sheet total of $3.31 trillion, JPMorgan Chase is the largest bank in the U.S. based on assets, according to InsiderIntelligence.com.
During the financial crisis of 2008, Chase was one of the banks deemed “too big to fail.” Certainly, an account holder can feel secure that their most is protected even if the bank faces financial hardship.
But is Chase also ahead of the curve when it comes to security? Chase uses multiple authentication checks when you try to sign in to your online account.
The bank monitors for unusual activity and may send a text message or email for you to authorize a transaction outside your home state or for an exceptionally high amount.
The bank’s website uses 128-bit data encryption to secure your personal information. Finally, bank employees are trained in fraud prevention, fraud detection, and ethics.
Everyday security features
128-bit encryption
Multifactor authentication
Guarantee against unauthorized access
EMV chip cards
Card locking through the app or automated phone system
24/7 fraud protection by phone
2. U.S. Bank
With assets totaling nearly $675 billion, U.S. Bancorp, parent company of U.S. Bank, is the fifth-largest bank in the U.S. The bank website and mobile app offer SSL encryption, one-time card numbers for online purchases, and enhanced security features for commercial banking customers.
The Bank Smartly checking account for consumers allow you to set up account alerts and reminders through the mobile app. You can make contactless payments through the app, which gives you added protection against point-of-sale fraud and debit card skimmers, which can steal your account information if you pay using the magnetic stripe on your card.
U.S. Bank also offers a “Safe Debit Card,” designed for consumers ages 14+ who want the convenience of a checking account and debit card without the ability to write checks. The Safe Debit Card provides free access to the user’s VantageScore 3.0 credit score through TransUnion, a credit score simulator, online bill pay, mobile banking, and no overdraft fees.
Everyday security features
$0 liability fraud protection
Multifactor authentication
Virtual card numbers
SSL encryption
EMV chip cards
3. TD Bank
TD Bank, or Toronto-Dominion, is not just one of the largest banks in the U.S. with a worldwide presence, it is also one of the safest. Its branches are known for personalized customer service. But the bank is also known for its online presence. TD Bank recently partnered with Amount, a fintech provider, to enhance security with a suite of state-of-the-art fraud detection and account verification services.
The bank has 24/7 fraud monitoring and text alerts for activity. Plus, if you lose your debit card, you can replace it immediately at a nearby branch. TD Bank also offers features that enhance your security, including Bill Pay and Mobile Deposit, which reduces the handling of paper checks that create a risk of theft and fraud.
Everyday security
Card locking
24/7 fraud monitoring
Personalized service
Mobile deposits
Enhanced security and fraud detection
4. Citibank
Citigroup, which owns Citibank and other Citi properties, is the third-largest bank in the U.S. right now behind Chase and Bank of America. Like Chase, Citi is considered one of the financial institutions deemed “too big to fail.” The bank’s market cap is $97.06 billion.
Citi is considered one of the safest banks due to its enhanced security features for its bank accounts and credit cards.
Citi was one of the first banks to offer a virtual credit card number. This one-time use card number allows cardholders to shop safely online without having to give out your bank account information or card number.
You can sign on to the Citi mobile using a QR code and Face ID®, Touch ID®, Biometrics or 6-Digit PIN, which is more secure than using a username and password. As with Chase, you will receive text alerts for suspicious or unusual activity.
Do not confuse Citi with CIT Bank. In spite of the similarity in their names, CIT is a division of First Citizens Bank and not affiliated in any way with Citigroup.
Everyday security features
EMV chip cards
$0 liability fraud protection
Biometric security
256-bit SSL encryption
Multifactor authentication
Remote debit card locking by phone or through the app
5. Charles Schwab Bank
Charles Schwab Bank is known primarily for its investment divisions. But the bank achieved the highest ratings for customer satisfaction with checking accounts by J.D. Power. Most of the world’s safe banks offer a high level of customer service, which can put a customer’s mind at ease.
Schwab Bank has many of the features high earners look for in a bank, including the ability to easily transfer money from your Schwab One brokerage account to your fee-free checking account.
Schwab’s Mobile app and banking systems use the highest levels of data encryption, as you might expect. Set notifications regarding transactions and fraud alerts through the mobile app. Lock and unlock your debit card at will. You can also set travel notices so that you don’t get a fraud alert in error if you’re making large purchases off your usual beaten path. The bank’s personalized service stands out, with 24/7 service via phone or chat, and branches nationwide.
Everyday security
Card locking through the app
Travel notices
Contactless payments
EMV chip card
Data encryption
6. M&T Bank Corporation
With assets totaling more than $200 billion, M&T Bank may not be as large as Citi or Chase, but its high level of customer service and security puts it on the list of safest banks. M&T Bank has earned multiple awards for small business excellence, along with the highest ratings issued by the Federal Reserve Bank of NY for Community Reinvestment Act performance.
M&T’s mobile app allows you to receive instant alerts about purchases via email, text, or in the app. This way, you can keep track of fraud along with your own spending habits. The app offers fingerprint or facial recognition on supported devices for enhanced security. You can easily report a lost or stolen card in the app or lock your card if you’ve misplaced it.
M&T delivers the same security larger banks offer, with the personalized service of a community bank. With 700 branches across 15 states nationwide plus a network of 1,800 ATMs, M&T Bank might be a convenient and safe choice for your money.
Everyday security features
SSL encryption
Debit card locking
Multifactor authentication
Identity protection services available
24/7 fraud protection
7. Wells Fargo
With $1.71 trillion in assets, Wells Fargo is currently the fourth-largest bank in the U.S. It offers savings and checking accounts, credit cards, loans, and more to personal and business customers.
The bank has more than 4,700 locations plus 12,000 ATMs in its network, making it convenient for customers across the U.S. The Wells Fargo mobile app makes online banking easy and secure, with access to your FICO score, fraud alerts, and multifactor authentication.
The website and app operate with SSL encryption. You can log in via face or fingerprint ID if you prefer. You can set alerts any time someone signs onto your account or whenever a purchase is made.
Furthermore, you can also connect a digital wallet to your account, which may be safer than using debit cards. If you think you lost your card, you can turn it off and turn it on again through the app if you find it.
Wells Fargo makes it easy to report fraud, unauthorized activity, or suspicious activity quickly and easily through the bank’s helpline, even if you are traveling outside the U.S.
Everyday security features
$0 fraud liability
·Guarantee against unauthorized activity
SSL encryption
Low balance alerts
Card locking
8. PNC Bank
PNC Financial Services, owner of PNC Bank, has assets of $557 billion as of December 2022, making it one of the largest banks in the U.S. Like the other big banks, PNC is on the cutting edge of security and fraud protection for its customers.
The bank offers a Virtual Wallet that provides three accounts for checking and savings, along with direct deposit capabilities, overdraft protection, and a “Low Cash Mode,” that alerts you when your balance drops below a specific amount.
PNC also offers traditional banking solutions at its 2,629 branches worldwide. Through the bank’s growing number of Solution Centers, as well as mobile branches in underserved communities, PNC combines the security and convenience of an online bank with a traditional bank.
Everyday Security
Virtual wallet
Debit card blocking
SSL encryption
Fraud alerts
$0 fraud liability
9. Capital One
Capital One sits in the country’s list of top 10 banks and, thanks to enhanced security measures, is considered one of the safest banks in the U.S., too. Capital One holds assets worth $391.81 billion.
Capital One’s credit cards are consistently ranked on top list for rewards credit cards for travelers, and their security measures and easy to use app works for both credit and bank account customers.
You can set alerts by text or email each time you use your card. The app uses multifactor authentication and Capital One has $0 fraud liability for its accounts. You will not be held responsible for unauthorized activity. The bank issues EMV chip cards for added security at point-of-sale transactions.
Everyday Security
Card locking through the app or by phone
Account monitoring
SSL encryption
Multifactor authentication
Activity alerts
Credit monitoring
10. AgriBank
AgriBank made the Global Finance list of world’s safest banks, coming in at number 34. Part of the Farm Credit System, the bank has a net income of $576.1 million and $142.1 billion in total assets.
AgriBank has delivered reliable and consistent service to the agricultural industry for more than 100 years. As an agricultural credit bank, AgriBank is a wholesale only lender to farmers, ranchers, and rural businesses and homeowners. It pays dividends to its members.
It’s important to note that AgriBank services only agricultural customers in 15 states in the southern and Midwest U.S., from Arkansas to Minnesota. AgriBank is not FDIC insured. But, it is backed by the Farm Credit System Insurance Corporation to protect its members.
Everyday security features
Ethics hotline through EthicsPoint
SSL secured website
Two-factor authentication
Data encryption
Backed by the FCSIC
11. CoBank
CoBank is the second FCS member on our list of safest banks. Like AgriBank, it is protected by the FCSIC and offers wholesale loans to rural customers in the agricultural, power, water, and telecommunications industries.
Serving customers in all 50 states, it is one of the largest private providers of credit to the U.S. rural economy, according to its website. Dedicated to preventing fraud, the financial institution has a podcast, Fraud Wise, that provides tips to help its rural customer prevent and detect fraud.
Customers can report fraud easily through phone or email. Because of its size and personalized service, CoBank is rated by Global Finance as one of the safe banks in the U.S.
Everyday security features
Code of ethics
Fraud prevention
SSL data encryption
Guarantee for unauthorized transactions
12. AgFirst
AgFirst Farm Credit Bank is another member of the Farm Credit System that runs as a cooperative, where an account holder is considered a partner. AgFirst takes steps to maintain the safety and security of its members financial data and money. The organization operates in alignment with national cybersecurity standards and applies industry best practices to keep its systems and customers secure.
AgFirst offers loan servicing, loan origination, and many other services to the agricultural community. Headquartered in Columbia, SC, AgFirst has locations across the south and Midwest U.S.
Everyday security features
SSL encryption
Adheres to national cybersecurity standards
Personalized customer service
Backed by FCSIC
Bank vs. Credit Union
In your search for the best bank, you might also consider a credit union. They often offer lower fees, higher interest rates, and more personalized service. The ability to build relationships with employees at your local branch might make them feel like a safer choice.
See also: Best Credit Unions Anyone Can Join
What makes credit unions safe?
The money in a credit union is insured by the National Credit Union Administration. Just as with FDIC insured bank accounts, funds in credit unions are insured for up to $250,000 per person, per account if the credit union fails.
Credit unions often offer local, more personalized service than a national bank, which makes them a desirable financial institution for some people. You may find zero fee checking accounts more frequently at credit unions, higher interest rates, and better loan terms.
The same technology and customer service used in the safest banks also keeps your money safe in a credit union. Look for SSL encryption and two-factor authentication, easy ways to report fraud, and a guarantee against unauthorized access to your account.
What makes the safest banks in the U.S. secure?
A variety of security measures, along with FDIC insurance, keeps the money in your bank secure against fraud and bank failures. Some of the factors that can enhance a bank’s security include its online banking security, the availability of EMV chip cards, $0 fraud liability,
What happens if a bank fails?
Bank failures happened with alarming frequency during the recession of 2008. Experian reports that there were 561 bank failures between 2001 and 2022, when the U.S. faced more than one financial crisis.
Fortunately, these banks were FDIC insured. When a bank fails, the FDIC sells the remainder of the bank’s assets to a more stable bank. Sometimes, the FDIC will cover the bank deposits itself.
Are online banks safe?
Online banks today use the same security measures as a brick-and-mortar financial institution. Often, an online bank offers a fee-free checking account and higher interest rates for an online savings account. If you choose an online bank, make sure it is FDIC insured.
What appears to be an online bank may not be a national FDIC insured bank, but another type of financial institution. If that’s the case, make sure it is backed by an FDIC insured national bank.
Countries as diverse as Japan, Germany, and the United Kingdom have postal banks. Their citizens can pick up mail, send packages, and order postage at the post office. Plus, they can perform a whole range of basic financial tasks Americans can do only at a bank branch or ATM.
Americans today, that is. For more than 50 years in the 20th century, the United States had a limited postal banking system that accepted savings deposits and paid interest. The United States Postal Savings System was a lifeline for rural and low-income workers with limited access to the traditional banking system. At its peak in 1947, it held more than $3 billion in assets, or about $45 billion in today’s dollars — enough to crack the top 50 biggest banks in the United States.
The Postal Savings System stopped accepting deposits in 1967 and liquidated a few years later. Few nonhistorians remember it today. But as account fees rise and bank failures call the private banking system’s stability into question, public interest in postal banking is growing once more. Maybe its time has come again — or maybe its inherent limitations are too much for modern consumers.
What Is Postal Banking?
Postal banking means that the national postal service provides financial services through its existing network of post offices. Post offices effectively serve as bank branches that accept deposits, cash checks, change currency, and perform other basic financial transactions.
Postal banking is common throughout the world. It’s also quite popular. Some countries’ postal banks rank among their biggest homegrown financial institutions. Japan Post Bank and the Postal Savings Bank of China are among the 20 largest banks in the world.
Although their business models and service menus vary from place to place, postal banks generally focus on retail financial services rather than investment banking or high finance. But many nonetheless offer an expansive range of services. For example, Deutsche Postbank, Germany’s postal bank, is one of Germany’s biggest housing lenders.
Postal banks aren’t limited to providing banking services through post offices only. Like most private banks and credit unions, modern postal banks generally offer online and mobile banking. This helps them compete with private banks for customers who increasingly expect to be able to bank from anywhere with an Internet connection.
Postal banks can be wholly government-owned, partially government-owned, or wholly owned by private shareholders. Most are part-owned by the national government and part-owned by private shareholders.
Deutsche Postbank is a notable example of a postal bank where the national government has no ownership stake at all. However, its parent bank (Deutsche Bank) is a systemically important private bank that the German government considers too big to fail and has bailed out in the past.
History of Postal Banking in the United States
The United States never had a dominant postal bank like Japan and China do today. And since it only ever provided limited financial services that relied heavily on existing private banks, some argue that the United States Postal Savings System wasn’t a true postal bank.
What’s not up for debate is that between 1911 and 1967, most Americans could walk into their local post office branch and deposit or withdraw cash — with interest.
Origins of the United States Postal Savings System
For the first 140 years of American history, deposits in U.S. banks were protected only by the faith and credit of the banks themselves. Banking customers could (and often did) lose their life savings in bank failures, which is why bank runs were so common back then.
After a spate of bank failures now known as the Panic of 1907, political momentum built for a durable solution. Some advocated for a national deposit insurance system, while others argued for a national bank that leveraged the existing post office system. The debate largely broke down along partisan lines, and pro-postal bank Republicans’ victory in the 1908 election settled the question.
Congress authorized the U.S. Postal Savings System in 1910. The first branches opened the following year. From the start, those most likely to be impacted by bank failures or underserved by traditional banks — rural folks, low-income workers, and immigrants everywhere — were most likely to use the system.
Services & Limitations
Policymakers envisioned the U.S. Postal Savings System as a sort of safety net bank that wouldn’t have an unfair advantage over private banks, which were already a powerful political force. They set it up with some important limitations:
Limits on banking services. The U.S. Postal Savings System took deposits from the public but didn’t hold onto them and didn’t use them to fund loans. Instead, postal bank branches redeposited customers’ funds into private banks in the same state. This provided those private banks with critical liquidity but ensured the Postal Savings System would never be a full-service financial institution.
Limits on interest payments. By law, the Postal Savings System paid 2% interest on deposits. This was intentionally lower than the going rate for private banks (around 3.5%) in the early 1910s. A lower interest rate ensured the Postal Savings System wouldn’t undercut private banks. It also encouraged in-state private banks to take Postal Savings System deposits by allowing those banks to pay below-market rates on them. This seemed like a win-win at the time, but it caused problems later on.
Limits on deposits. Congress initially set the deposit limit at $500 per account, or about $14,000 in today’s dollars. The deposit limit increased to $2,500 per account in 1918 (about $48,000 today). That’s a lot of money, but not quite enough to make the post office a one-stop bank for wealthier people.
The system had some other, more technical limitations as well. One that turned out to be important later on was a ban on redepositing funds with savings and loan banks (S&Ls). At the time, S&Ls made most of the country’s mortgage loans, so this restriction prevented Postal Savings System deposits from flowing back into the housing market.
Growth During the Great Depression
Through the 1910s and 20s, the Postal Savings System remained a relatively small player in the U.S. financial system. As its creators envisioned, it was mostly a safety net bank for lower-income industrial workers, farmers, and immigrants with limited access to traditional financial institutions.
This changed during the Great Depression. Hundreds of S&Ls and many more small, independent banks failed between 1929 and 1934. Interest rates crashed as well. Seeking safe haven (and a now-competitive yield) for their money, many more Americans opened Postal Savings System accounts. Total system deposits swelled past $1 billion in 1930 dollars.
However, even as it grew, the Postal Savings System’s weaknesses began to show.
Once an incentive for participating private banks to take system deposits, the interest rate cap became a liability as interest rates crashed. Private banks began to refuse postal deposits.
But more money than ever was flowing into the system in search of higher yields. So its administrators began buying public bonds, which paid higher interest rates. Ironically, this starved struggling banks of the capital they needed to make loans and may have worsened the depression.
Decline & Closure
In 1933, Congress authorized the Federal Deposit Insurance Corporation (FDIC), the United States’ first national deposit insurance system. The FDIC guaranteed private bank deposits up to $2,500, then $5,000. Safety-wise, this put private banks on the same footing as the Postal Savings System and reduced the pressure on both systems.
Money continued to flow into the system amid lingering fears around bank safety and above-market interest rates on deposits. Total deposits didn’t peak until 1947. But by then, the seeds of the Postal Savings System’s decline were already sown:
Consumers eventually got comfortable with the FDIC, which prevented millions in banking losses during the 1930s and 40s
The federal government vastly expanded bond sales in the 1940s to fund the World War II effort, creating a safe alternative to high-yield savings accounts at the post office
Private banks stepped up lobbying efforts against the system in the 1940s and 50s
Private banks expanded coverage and services, strengthening their appeal relative to the Postal Savings System’s more limited menu
Privacy concerns grew around the system’s practice of fingerprinting depositors, despite assurances that it wouldn’t share fingerprint records with law enforcement
Deposits declined through the 1950s and 60s. By 1967, when it officially stopped taking deposits, the total system balance was just $50 million.
Recent Developments in U.S. Postal Banking
Even after the Postal Savings System shuttered, the United States Postal Service continued to issue and cash money orders. The USPS put out reports in 2014 and 2015 that envisioned how it might layer other financial services atop this foundation:
Payroll check cashing
Domestic and international money transfers
Bill payment services
Surcharge-free ATMs
The idea was to reduce low-income America’s reliance on predatory financial services providers, such as payday lenders and check-cashing shops, while reducing incidental banking and money transfer fees for everyone else.
The American Postal Workers Union strongly advocated for more post office-based financial services and got USPS management to agree to a small check-cashing pilot at a few locations in the eastern United States. But the poorly publicized pilot was a bust, and more substantive action would require an act of Congress.
In 2022, Congress took the first tentative step toward expanded postal financial services, if not quite a second U.S. postal bank. After removing a federal budget line item that would have expanded the USPS pilot, three Democratic senators introduced a standalone bill that went beyond the USPS’s recommendations. In addition to check-cashing, money transfer, bill payment, and ATM services, it authorized post offices to offer:
The bill didn’t even get a vote. Republican lawmakers were unified in opposition, and USPS management was lukewarm at best. Advocates can and probably will try again in the future, but it’s not clear the political will exists to make a modern U.S. postal banking system anytime soon.
Arguments for Postal Banking in the United States
Arguments in favor of establishing a new postal banking system in the United States focus on its potential to reduce the chronically underbanked population while providing a low-cost alternative to private banks for everyone else.
Straightforward, low-cost banking services. A U.S. postal bank would focus on providing basic banking services at low or no cost. Think free checking and savings accounts, fee-free ATMs, and maybe low-interest loans or lines of credit.
Real-world convenience. The USPS has nearly 20,000 post offices around the country. Many rural communities without physical bank branches (or much else in the way of physical retail) have their own post offices.
Alternative to predatory financial services providers. Payday lenders and check-cashing shops charge triple-digit interest rates for their services. But many users don’t realize this because they deal in relatively small amounts of money over short periods of time. A U.S. postal bank could reduce or eliminate low-income folks’ reliance on these predatory companies.
Builds on an existing foundation. It’s not like the USPS has no recent experience in financial services. Millions of people already use its money order services for transactions where cash, personal checks, or credit cards won’t do. Postal banking isn’t as radical a shift as you might think.
Arguments Against Postal Banking in the United States
Opponents of a U.S. postal banking system argue that it would cost billions to set up and scale a system that could have an unfair advantage over private banks and credit unions.
Could take years and cost a lot to set up. It might not be a radical change in direction for the USPS, but a modern U.S. postal bank would still take years to set up and cost hundreds of millions or even billions of dollars upfront. There’s also no guarantee it would ever turn a profit, especially if it focused on keeping account costs and loan interest rates low.
No modern history of U.S. postal banking. At this point, the USPS has no institutional memory of postal banking. Everyone who worked for the United States Postal Savings System is retired or dead. So the modern version would essentially start from scratch — not that it couldn’t poach employees from the private sector.
Could undercut private banking. This is certainly private banks’ big fear of postal banking: that it would be successful enough to take significant market share from them. Depending on your perspective, that could be a good thing, but private banks do have powerful friends in Washington.
Financial access is increasing without postal banking. Public access to basic financial services has increased in recent years thanks to rapid growth in online banking and mobile finance apps. Millions of American adults remain underbanked, but the problem is less dire than 15 years ago.
Final Word
For more than 50 years in the 20th century, the United States Postal Savings System provided ordinary Americans with a limited range of financial services. Though it never grew into a dominant bank or threatened the private banking system, it had billions in deposits at its peak and probably helped some customers avoid financial ruin in the days before deposit insurance.
But it’s fair to say that the Postal Savings System never lived up to its potential. The reasons are complex, but the system’s built-in limitations and weaknesses likely prevented the sort of success postal banks have seen in places like Japan and China.
Looking ahead, it’s unlikely we’ll see a new U.S. postal bank anytime soon. If and when we do, let’s hope its founders learn from their predecessors’ mistakes.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
The Great Financial Crisis of the late 2000s was the worst economic calamity since the Great Depression. Most agree that lax regulation of banks and other financial institutions set the stage for the risky lending and trading practices that caused it.
Congress responded to the crisis — and attempted to prevent anything similar from happening again — by passing the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Named for then-Sen. Chris Dodd and then-Rep. Barney Frank, Dodd-Frank was a sweeping piece of legislation that imposed new restrictions on how financial institutions operate and enshrined new protections for individual borrowers, bank account users, and investors.
Not everyone was happy with the outcome. Right away, banks and their Congressional allies worked to weaken it. They claimed partial victory in 2018 with the passage of the Economic Growth, Regulatory Relief & Consumer Protection Act, which eliminated or softened key parts of Dodd-Frank.
Some argue that this set the stage for the failure of Silicon Valley Bank and a handful of other big regional banks in 2023. The truth is more complicated — and more interesting.
What Is the Dodd-Frank Act of 2010?
The Dodd-Frank Act of 2010 is a financial regulation and consumer protection law that significantly changed how banks and investment firms operated.
For most consumers, Dodd-Frank’s most visible provisions were a slew of new protections for borrowers and the creation of the Consumer Financial Protection Bureau (CFPB), which among other things helped track and enforce those new regulations.
Less visibly but perhaps even more consequentially, Dodd-Frank fundamentally changed federal oversight and regulation of the financial industry. Along these lines, its key elements included:
Creating new financial oversight agencies. Dodd-Frank authorized two new financial regulatory agencies: the Financial Stability Oversight Council and the Office of Financial Research. It tasked these agencies with monitoring banks’ financial health and risk-taking behavior in the hopes of spotting trouble before it threatens the wider financial system.
Giving the Federal Reserve new powers to regulate big banks. Dodd-Frank gave the Federal Reserve new powers to monitor systemically important (“too big to fail”) banks. It set the threshold to qualify as a systemically important bank at $50 billion in assets.
Prohibiting banks from making certain speculative investments (Volcker Rule). Named for former Federal Reserve Chair Paul Volcker, this provision banned banks from trading financial assets with their own money for the purpose of turning a profit. It also prevented banks from owning hedge funds, private equity funds, or venture capital funds.
Establishing a new process for winding down failed companies. Dodd-Frank created the Orderly Liquidation Authority and tasked it with winding down major corporate failures in a way that minimized economic fallout.
More aggressively regulating the financial instruments that caused the Great Financial Crisis. Dodd-Frank tightened regulations on credit-default swaps, the complex financial instruments that sparked the Great Financial Crisis. It didn’t ban them outright but did require that they be sold through clearinghouses or stock exchanges, similar to many other market-traded securities.
In 2018, Congress passed the Economic Growth, Regulatory Relief & Consumer Protection Act.
The law was specifically intended to repeal parts of the Dodd-Frank Act that were unpopular with the financial industry and other business interests. However, it left large swathes of Dodd-Frank intact, including the CFPB and some other important consumer protections.
Changes Affecting Smaller Community Banks
Most Economic Growth Act provisions applied to community banks with less than $10 billion in assets. The biggest change was exempting these banks from the Volcker Rule, but there were a lot more technical tweaks that combined to significantly reduce their regulatory burden. If you’re interested in the details, Indiana Sen. Todd Young’s office put out a comprehensive, easy-to-understand fact sheet at the time.
Notably, the Economic Growth Act didn’t exempt banks as big as Silicon Valley Bank, First Republic Bank, or Signature Bank from the Volcker Rule. However, an important Federal Reserve policy change did relax the Volcker Rule in 2020, allowing bigger banks to invest their own money in venture capital funds and other risky assets.
Change Affecting Larger Regional Banks
The act’s most consequential change applied to much larger banks. This raised the too-big-to-fail threshold from $50 billion to $250 billion in assets. Dozens of banks that previously counted as too big to fail were exempted overnight, including several banks that failed in 2023: Signature Bank, Silicon Valley Bank, and First Republic Bank.
They were no longer subject to direct supervision by the Federal Reserve and could reduce the amount of capital they held in reserve. Silicon Valley Bank, in particular, deployed some of its now-excess capital in investments that eventually lost significant value.
Only the biggest banks in the United States — fewer than 20 at the time — remained subject to the stricter scrutiny that came with too big to fail status. Importantly, Silicon Valley Bank aggressively lobbied Congress to raise the too-big-to-fail threshold high enough to exempt it. It had a clear motive to do so, as it primarily served tech entrepreneurs and venture capitalists awash in risky investment opportunities the Volcker Rule prevented it from pursuing.
This was the Economic Growth Act change that may have contributed to the 2023 banking crisis. Combined with the Federal Reserve’s relaxation of the Volcker Rule, it set the stage for banks to take greater risk with less supervision, which many believe contributed directly to the failures of 2023.
Did the Economic Growth, Regulatory Relief & Consumer Protection Act Contribute to the 2023 Banking Crisis
To understand the 2023 banking crisis, it’s crucial to understand the economic and regulatory environment leading up to it.
Looser regulatory oversight. The increase in the too-big-to-fail threshold excluded all three of the banks that failed in 2023. This meant that they were no longer subject to direct supervision by the Federal Reserve and the requisite frequent stress tests, which measure banks’ capacity to endure various hypothetical-but-realistic economic scenarios.
Lower liquidity requirements. They also weren’t required to maintain as much liquidity, or capital in reserve. Essentially, they could shrink their rainy-day funds and use more of their cash to make loans or buy interest-paying bonds.
More freedom to take risks. With less oversight and liquidity, they were free to operate with more discretion than before. But with less cash on hand, they had less margin for error and faced graver consequences if things went wrong. For example, Silicon Valley Bank continued to hold low-interest bonds on its balance sheet even after the Federal Reserve began raising interest rates in 2022. As the value of those bonds plummeted, the bank had no choice but to declare a multibillion-dollar loss on them — just as the tech economy hit the skids, drying up a vital source of new deposits and investment income.
Lots of uninsured deposits. This had nothing to do with Dodd-Frank or the Economic Growth Act, but it did mean that these banks’ financial troubles spooked investors and the banks’ own customers more than they otherwise would have. All three of the banks that failed in 2023 catered disproportionately to high-net-worth individuals and businesses with far more than the $250,000 FDIC insurance limit in their accounts. For example, many of Silicon Valley Bank’s clients were rich venture capitalists and tech entrepreneurs.
Vulnerability to bank runs. Lots of uninsured deposits and disproportionate exposure to specific industries increased these banks’ vulnerability to bank runs, where customers all try to withdraw their cash at once. This happened most dramatically at Silicon Valley Bank, which saw more than $40 billion in attempted withdrawals just before it failed. But many First Republic and Signature Bank customers took flight before those banks failed as well.
Regulatory failures. Had these banks still qualified as too big to fail, they would have faced stricter scrutiny from regulators that may well have prevented their collapse. But it’s not like they faced none at all after 2018. In fact, reports following Silicon Valley Bank’s collapse suggest that regulators were concerned about what was going on inside the bank in 2022. They just didn’t take action early enough or decisively enough to make a difference.
The underlying cause of these banks’ troubles — particularly Silicon Valley Bank’s — was more akin to a basic management failure than the sort of wild speculation that caused the Great Financial Crisis. In Silicon Valley Bank’s case, everyone knew interest rates were going up, so it’s not clear why Silicon Valley Bank held onto those bonds for so long. That said, Dodd-Frank existed in part to prevent such questionable decision-making, and regulators could have done more to enforce what remained of it.
All this is to say that the Economic Growth Act may have sparked the 2023 banking crisis by weakening the too-big-to-fail standard. But its role was a supporting one at best. Rising interest rates, jumbo-sized accounts, bad management, and lax regulatory action were all more important.
FAQs About Dodd-Frank & the Economic Growth Act
We’ve seen how partial Dodd-Frank repeal may have sparked a new banking crisis, but that’s not the law’s only legacy. Conversations about Dodd-Frank and partial repeal also touch on questions like these.
Did the Dodd-Frank Act Hurt the Economy?
It depends who you ask. The Dodd-Frank Act authorized some important new consumer protections and created a new agency (the CFPB) focused solely on protecting everyday folks’ finances.
Consumer advocates would say that’s a good thing, but many business owners and trade groups — not to mention financial institutions — argue that it increased the cost and complexity of doing business to the economy’s detriment.
Likewise, Dodd-Frank restricted or prohibited banks from engaging in certain risky financial behaviors, like proprietary trading. Those rules made markets calmer and more predictable while reducing the risk of bank failures.
But they also cut into banks’ profits and may have discouraged legitimate investment activity. Even former Congressman Barney Frank soured on his own bill over time — though, in his new career as Signature Bank director, he was hardly a neutral party.
Is the Dodd-Frank Act Still in Effect?
Yes, the Dodd-Frank Act is still in effect. However, the Economic Growth Act significantly weakened key aspects of it. By encouraging larger banks to take more risks, this may have contributed to a spate of bank failures in early 2023.
Is the Volcker Rule Still in Effect?
The Volcker Rule is technically still in effect. However, the Economic Growth Act exempted banks with less than $10 billion in assets. Unrelated rule changes adopted by the Federal Reserve in 2020 loosened some of its provisions for all financial institutions.
Today, the Volcker Rule restrictions on proprietary trading are no longer quite so strict. Banks now also have more leeway to invest in venture capital funds and securitized loans (the sorts of instruments that contributed to the Great Financial Crisis).
Does the Consumer Financial Protection Bureau Still Exist?
Yes, the CFPB still exists. The Economic Growth Act had little direct effect on its operations.
The Trump Administration significantly weakened the CFPB through a combination of neglect and administrative rule changes that favored financial institutions. But the Biden Administration reversed many of these changes.
The agency remains a political football, with Republicans generally opposed and Democrats generally in favor.
What Happened to Barney Frank?
Barney Frank retired from Congress in 2013. He published a memoir in 2015, the same year he joined the board of Signature Bank. He told The Financial Times that he took the job because he needed to make money and didn’t want to become a political lobbyist. According to SEC filings, Signature Bank paid Frank about $2 million between 2015 and 2023.
What Happened to Chris Dodd?
No one knows.
Just kidding. Dodd retired from the Senate in 2011 and became chairman of the Motion Picture Association of America. He held that job until 2017, then went into private legal practice with the law firm Arnold & Porter. More recently, he advised President Joe Biden’s 2020 campaign and served on his vice presidential selection committee.
Final Word
The 2023 banking crisis was a far cry from the Great Financial Crisis 15 years earlier. Though it saw two of the biggest bank failures in history — Silicon Valley Bank and First Republic Bank — it didn’t crash financial markets or spark an economic calamity.
The damage was minimal because the causes were different. Whereas the Great Financial Crisis was the culmination of years of irresponsible risk-taking by banks big and small, greased by the effective repeal of a longstanding law that prevented such risk-taking, the 2023 banking crisis was the regrettable result of more basic management failures at a handful of regional banks. And though the partial repeal of another law — Dodd-Frank — may have played a supporting role, the correlation is far less clear.
Add it to the pile of evidence that history often rhymes but rarely repeats.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
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Wall Street is a place that people love to hate.
The Wall Street of today, however, could not be further from the one we know and fear: it’s a trillion-dollar industry with innovation brewing in every corner. You may have heard about these innovations on The Big Short or Moneyball but you might want to broaden your horizons when it comes to movies that feature this major American institution.
While learning about money, finances, and the stock market may or may not be your thing, there is plenty to learn while being classically entertained.
When you’re studying for the MCAT, going through a financial audit, or watching skyrocketing inflation happening before you, it can be hard to find films that accurately portray modern finance.
But Wall Street is full of memorable characters and interesting situations with plenty of twists and turns to keep your attention.
Whether you’re looking for movies about trading on Wall Street or movies about money itself, here are 25 classics worth watching over and over again!
Followed by a list of the best documentaries on stock market trading.
Best Movies About Wall Street
Plenty of movies have been made about Wall Street over the years. There is a fascination with the life of a trader and how it intersects with business.
The order dated from the oldest movie to the most recent film.
Here are 25 of the best films set at the intersection between finance and our culture:
1. “Edison, the Man” (1940)
The movie is about the life of Thomas Edison, one of the most famous inventors in history.
The main character is played by Spencer Tracy, who does a great job portraying businessman Thomas A. Edison. The story follows Edison’s journey from being a stockbroker on Wall Street to becoming one of the most famous inventors in history.
Most of the film’s script is fictionalized or exaggerated, it should be viewed as such.
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2. “Citizen Kane” (1941)
Citizen Kane is a 1941 American drama film directed by, produced by, and starring Orson Welles. The picture was Welles’s first feature film. The screenplay, written by Herman J. Mankiewicz and Welles, was based on the life of William Randolph Hearst.
Citizen Kane helped form the idea that there should be a cultural shift in how we view Wall Street. It is considered to be one of the greatest movies ever made because it’s highly innovative, artistic, and technical with many different themes being explored throughout its runtime.
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3. “It’s A Wonderful Life” (1946)
“It’s A Wonderful Life” is a classic movie for the generations.
The protagonist of the movie is George Bailey. The movie revolves around the idea that if George Bailey never existed, life would be much worse off. This film is a classic and a must-watch for anyone interested in finance or business.
Ultimately, he learns some valuable lessons about life and himself.
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4. “Trading Places” (1983)
“Trading Places” is the funniest movie about Wall Street. The plot revolves around how one man’s fall from Wall Street is another man’s blessing.
It’s a classic movie about Wall Street that is still relevant today. The film follows the story of two men whose lives are drastically changed when they’re made the subject of a bet on Wall Street. It stars Dan Aykroyd, Eddie Murphy, Ralph Bellamy, Don Ameche, Denholm Elliott, and Jamie Lee Curtis.
Released in 1983, Trading Places was a box-office success. Earning over $90 million, the film became the fourth-highest-grossing film of that year in the United States and Canada. Furthermore, it was critically acclaimed for its humor and cast.
John Landis directed “Trading Places” and it is an absolute classic. Watching Murphy talk about futures and markets is hilarious.
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5. “Working Girl” (1988)
“Working Girl” is a 1986 romantic comedy-drama film directed by Mike Nichols and written by Kevin Wade. The film stars Melanie Griffith, Harrison Ford, Sigourney Weaver, Alec Baldwin, and Joan Cusack. It received many Academy Award nominations in 1989, including Best Picture and Best Actress (for Griffith).
The story follows Tess McGill (Griffith), an ambitious secretary who pitches a profitable idea to her boss only to have her boss take credit. After her boss (Weaver) is out with a medical injury, Tess teams up with investment banker Jack Trainer (Ford) to make a big deal. Things get complicated when her boss comes back and discovers what Tess has been up to.
“Working Girl” was praised by critics upon release and became a box office success. It grossed over $96 million worldwide against its $13 million budget.
The idea for Working Girl came when writer Kevin Wade and producer Douglas Wick were in New York City together in 1984 and noticed throngs of career women walking to work while carrying their high heels (source).
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6. “Wall Street” (1987)
“Wall Street” is a 1987 American drama film directed by Oliver Stone and starring Michael Douglas, Charlie Sheen, and Daryl Hannah. The film tells the story of Bud Fox (Sheen), a young stockbroker who wants to make it big in the world of finance.
An eager and inexperienced stockbroker is willing to do anything to get ahead, including going through an unscrupulous shady corporate raider who takes the young-in-awe under his wing.
The movie was nominated for seven Academy Awards, including Best Picture and Best Actor (Michael Douglas).
A sequel titled “Wall Street: Money Never Sleeps” was released 23 years later.
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7. “Bonfire of the Vanities” (1990)
“Bonfire of the Vanities” is a movie that captures the class-consciousness of 1980s New York.
The film focuses on Wall Street and New York City’s stratification issues. In particular, it focuses on the Manhattan elite and how they are separated from other social classes in the city.
The film is based on a book by Tom Wolfe, who was inspired by his own experiences living in Manhattan during that time period.
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8. “Other People’s Money” (1991)
Other People’s Money is a 1991 American comedy-drama film directed by Norman Jewison and starring Danny DeVito, Gregory Peck, and Penelope Ann Miller. DeVito plays a ruthless businessman who buys companies and sells off their assets to make him rich.
Along the way, this corporate raider falls in love with the wife’s daughter, who is a lawyer. An avid lover of this woman, the corporate raider attempts to win her heart through legal maneuvering.
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9. “Glengarry Glen Ross” (1992)
Glengarry Glen Ross is a 1992 American drama film adapted by David Mamet from his 1984 Pulitzer Prize-winning play Glengarry Glen Ross. The film was directed by James Foley and stars Al Pacino, Jack Lemmon, Alec Baldwin, Alan Arkin, and Kevin Spacey.
“Glengarry Glen Ross” is a movie about the incentives of real estate salesman. This drama-filled movie shows what people will do to close a sale.
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10. “Barbarians at the Gate” (1993)
Barbarians at the Gate is a 1993 American drama made-for-TV movie based on the book of the same name by Bryan Burrough and John Helyar. The film was directed by Glenn Jordan and stars James Garner as H. Ross Perot, Peter Riegert as Henry Kravis, and Swoosie Kurtz as Ruth Harkness.
The film tells the story of a leveraged buyout between two Wall Street insiders who battle for control over a company. It is considered one of the best movies about Wall Street because it provides an inside look at how these deals are made.
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11. “The Associate” (1996)
The Associate is an American comedy movie released in 1996.
Investment banker Laurel Ayres (Whoopi Goldberg) is an associate for an investment firm who has great advice but doesn’t get the respect she deserves because she is a black woman.
Money is power, so she uses a white man as her partner. The protagonist has great advice but no one will take it seriously because she’s a woman of color with an African American sounding name. To prove her worth, the protagonist creates a fictional white male figure to be her business partner to make people listen to her more than they would otherwise.
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12. “Rogue Trader” (1999)
Rogue Trader is a 1999 British drama film directed by James Dearden and starring Ewan McGregor and Anna Friel. It is based on the true story of Nick Leeson, a British trader who caused £800 million or about $1 billion in losses through unauthorized trades in 1987, and his attempt to cover up his losses by falsifying account documents.
Nick reads in the newspaper that the company went bankrupt and then realizes the severity of his losses. Him and his wife then decided to go back to London, but Nick is arrested en route from Frankfurt. Finally, Nick is extradited to Singapore where he is sentenced to six and a half years in prison.
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13. “American Psycho” (2000)
American Psycho is a satirical psychological horror film that was released in 2000 and is based on the novel of the same name by Bret Easton Ellis.
The film stars Christian Bale, Willem Dafoe, Jared Leto, Josh Lucas, Chloë Sevigny, Samantha Mathis, Cara Seymour, Justin Theroux, and Reese Witherspoon. It debuted at the Sundance Film Festival on January 21, 2000, and was released theatrically on April 14, 2000.
American Psycho is a movie about Patrick Bateman, a successful Wall Street executive with an inner darkness that leads him to commit heinous crimes. The film has developed a cult following over the years and is now considered a classic. Additionally, it has made a strong presence in contemporary meme culture.
A direct-to-video sequel, “American Psycho 2” was released in 2002.
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14. “Boiler Room” (2000)
Boiler Room is a movie about Wall Street corruption. It stars Giovanni Ribisi, Vin Diesel, Nia Long, Ben Affleck, Nicky Katt, and Jamie Kennedy.
This movie is about a young man, played by Giovanni Ribisi, who ran an unlicensed casino, but wasn’t making the living his father, a New York City judge wanted. So, with the promise of being a millionaire, he becomes a stockbroker in a brokerage firm.
In fact, the brokerage firm was running Pump and Dump schemes – investment scams that involve artificially inflating the price of stocks before dumping them onto uninformed investors.
The movie was met with mixed reviews by critics but audiences seemed to enjoy it more. I mean it did star Ben Affleck.
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15. “The Bank” (2001)
This Australian movie “The Bank” is about finance software that predicts stock market trends.
This drama-thriller heist film was directed by Frank Oz and written by Paul Schrader. The critical response was mixed but praised its acting performances, particularly from Al Pacino and Jennifer Wright Penn.
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16. “The Pursuit of Happyness” (2006)
“The Pursuit of Happyness” is a 2006 American biographical drama film based on the life of Chris Gardner. It tells the story of how he rose from homelessness to Wall Street success. The movie was directed by Gabriele Muccino and stars Will Smith in the leading role. It grossed over $307 million worldwide, making it one of Smith’s highest-grossing movies. In 2006, Will Smith was nominated for the Academy Award for Best Actor for his portrayal of Gardner.
The movie is set in San Francisco, California, and follows Gardner’s trials and tribulations as he strives to become a successful stockbroker. Despite being homeless with a young son, he never gives up on his dream. The film finishes with him landing a job at Dean Witter Reynolds and becoming a millionaire five years later.
Although “The Pursuit of Happyness” is not technically about Wall Street, it is an excellent depiction of what it takes to be successful in this field – grit, determination, and perseverance in the face of adversity.
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17. “Wall Street: Money Never Sleeps” (2010)
Wall Street: Money Never Sleeps is a 2010 American drama film directed by Oliver Stone. It is a sequel to Wall Street (1987), which was also directed by Stone. The film stars Michael Douglas, Shia LaBeouf, and Carey Mulligan.
The movie begins with the release of Gordon Gekko (Michael Douglas) from prison, where he has been for eight years for insider trading and securities fraud. He immediately goes to see his future son-in-law, Jacob (Shia LaBeouf), who is now working on Wall Street. Gordon helps Jacob get back at the man who screwed his mentor’s firm over.
The movie covers the events leading up to the financial crisis of 2008 and explores how it affects individuals, society, and culture. The firm was highly successful at the box office earning more than $134 million worldwide.
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18. “Margin Call” (2011)
Margin Call is a movie about Wall Street and bankers. It is considered a classic, and it was released in 2011. The banker in the movie has created a financial model that shows the firm will be completely underwater, but before he can show anyone else, he gets fired. He hands his model off to a junior banker who then has to save everything from this one data point on his laptop in the middle of the night while everyone is asleep.
Everyone wonders if “Margin Call” is a true story. While there is no specific person or company name, it rings true of what happened in the 2007-2008 financial crisis.
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19. “Too Big To Fail” (2011)
“Too Big To Fail” is a 2011 HBO adaptation of the book by Andrew Ross Sorkin. The movie covers the 2008 financial crisis and follows bankers who meet behind closed doors with regulators to negotiate the federal bailout of the financial industry.
The film was able to feature a parade of stars who played different bank and investment bigwigs. While it’s based on true events, there are some dramatizations in order to make for a more compelling film.
It’s an interesting look at how Wall Street operates and what happens when things go wrong.
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20. “Cosmopolis” (2012)
“Cosmopolis” is a movie starring Robert Pattinson about an incident involving currency speculation. The plot of the movie is quite complicated and may leave viewers scratching their heads as to what just happened.
The protagonist, Eric Packer, is a Wall Street investor who finds himself in the middle of an unexpected incident while in New York City. His wife and lover are introduced throughout the story but it doesn’t make sense why they would be in New York City together.
This movie has a lot of intrigues that will keep you on your toes as you weave through his personal life and the emotional rollercoaster of trading!
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21. “Arbitrage” (2012)
“Arbitrage” is a movie about an ambitious hedge fund manager who tries to sell his company before anyone finds out he’s cooked the books. The plot involves a mistress accidentally dying in a car accident and its cover-up, with help from an unlikely source.
The movie is well acted and suspenseful and provides great insight into the world of high finance.
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22. “The Wolf of Wall Street” (2013)
The Wolf of Wall Street is a 2013 American biographical black comedy crime film directed by Martin Scorsese and written by Terence Winter, based on the memoir of the same name by Jordan Belfort. The film stars Leonardo DiCaprio as Belfort, Margot Robbie as his wife Naomi Lapaglia, Jonah Hill as Donnie Azoff, and Kyle Chandler as Patrick Denham.
This true story of Jordan Belfort, who starts his own company in the early 1990s and quickly grows their company – more importantly their status in the trading community on Wall Street. At the same time, so do their substance abuse and lies. Belfort is named the Wolf of Wall Street by Forbes Magazine. Soon after, the FBI look into Belfort’s trading schemes…
Now, you will have to finish the movie to see what happens.
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23. “The Big Short” (2015)
The Big Short is a movie about the 2008 financial crisis and Michael Burry’s role in it. It was directed by Adam McKay and stars the brilliant ensemble cast in this movie of Christian Bale, Steve Carell, Ryan Gosling, Brad Pitt, and Marisa Tomei. The film was nominated for five Academy Awards, including Best Picture and Best Director (source).
Viewers praise the film for being entertaining and broad. It is among the top Wall Street movies.
Not many people are brave enough to go against the market trends and big banks except for Michael Burry. Who came out ahead on the big short in the housing market?
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24. “Money Monster” (2016)
George Clooney and Julia Roberts team up in this financial thriller as TV show hosts who are taken hostage at gunpoint due to an irate investor. There is a tense standoff taking place on live television.
The film was directed by Jodie Foster and received mixed reviews, but still did well at the box office.
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25. “The Wizard Of Lies” (2017)
The Wizard of Lies is a 2017 American biographical drama film about the fall of Bernie Madoff. Madoff’s Ponzi scheme was highly watched across the world as it was the largest spam in US history as he robbed at least $65 billion from unknowning victims. The film stars Robert De Niro as Bernie Madoff, Michelle Pfeiffer as Ruth Madoff, Alessandro Nivola as Mark Madoff, Nathan Darrow as Andrew Madoff, and Kristen Connolly as Catherine Hooper.
The film shows how the family of Bernie Madoff falls apart amidst the scandal.
“Bernie Madoff” is a biopic about the infamous Ponzi schemer who was jailed for orchestrating one of history’s largest financial pyramids. The film utilizes Robert DeNiro as Bernie Madoff, and tells the story from his perspective. Critics praised the film for being powerful.
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What movies are about Wall Street?
There are a lot of great movies about Wall Street, but it can be hard to pick the best ones.
Some of our favorites include “Too Big to Fail,” “Boiler Room,” and “The Wolf of Wall Street.”
Which movie is based on stock market? Much Watch Ones
There are many movies based on the stock market. Some of the most popular ones include “The Wolf of Wall Street,” “The Big Short,” and “Margin Call.”
These movies tell the story of people who have made or lost a lot of money trading stocks and other investments. They offer a fascinating look at what happens behind the scenes on Wall Street, and they can be very educational for anyone interested in investing.
What Are the Top 3 Hedge Funds Movies to Watch?
There are a number of great movies about Wall Street and the hedge fund industry. Some of the most popular ones include “The Big Short“, “Boiler Room“, and “Arbitrage.”
These movies offer a fascinating look into the world of high finance and provide an interesting perspective on the industry. Hedge funds can be very profitable, but they can also be risky. Watch these films to learn more about the risks involved in this kind of investing, as well as the rewards.
Best Finance Documentaries
Ever since the 2008 financial crisis, film buffs have been obsessed with anything related to Wall Street.
From the “Trader” to the “Inside Job”, Hollywood seems ready to take on the global financial sector.
We’ve compiled a list of some of the best finance-related documentaries available to watch.
1. “Trader” (1987)
In the 1987 film “TRADER,” Paul Tudor Jones II offers a highly charged look at what it takes to make it as a Wall Street trader. The film was shot before the October 1987 crash, so it is an interesting historical artifact.
It delivers a rarely seen view of this marketplace and explains the workings of this frantic, highly charged area. This film is important because it captures America as it nears the end of its 200-year bull market.
“Trader” is a fascinating look into the minds of traders and their thought processes. It provides an inside look at the strategies that traders use to make money and how they think about the markets. If you are interested in learning about trading or want to get a better understanding of how it works, then Trader is a must-read documentary.
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2. “The Trillion Dollar Bet” (2000)
The Trillion Dollar Bet is a documentary about a magic formula, specifically the Black–Scholes–Merton formula, which was dreamed to reduce risk in the stock market.
It is an interesting film because it portrays Wall Street in a way that many people have never seen before. As they started to use this “dream” formula, they started losing huge amounts of investments each day. The movie focuses on the rise and fall of hedge funds, with a specific focus on the 1994-1998 period when one of them went bankrupt.
The documentary will interest many people who are interested in finance, economics, and investing.
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3. The Corporation (2003)
“The Corporation” is a documentary film written by Joel Bakan, and directed by Mark Achbar and Jennifer Abbott.
Released in 2003, the film examines the nature of the modern corporation, considering its legal status as a “person”, and how this affects different aspects of corporate behavior. The film won numerous awards including at the Sundance Film Festival (source).
And check out the latest… The New Corporation: The Unfortunately Necessary Sequel
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4. Enron – The Smartest Guys in the Room (2005)
The film “Enron – The Smartest Guys in the Room” tells the story of Enron, a company that was involved in accounting fraud and created $30 billion worth of debts. Enron is often seen as an example of corporate corruption and the Enron incident is often considered the best example of that.
This documentary tells the story of how Enron became one of the largest companies in America before its collapse.
Critics reviewed the film positively and it also received good ratings from audiences.
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5. Wall Street Warriors (Season 1-3 | 2006)
If you’re looking for a reality TV series that will take you inside the fascinating and high-pressure world of Wall Street, look no further than “Wall Street Warriors”.
The show follows the lives of those working on Wall Street – from traders to investment bankers to hedge fund managers.
There are 3 seasons, with each season consisting of 26 episodes. So whether you’re looking for an hour of entertainment or you want to learn more about the financial industry, “Wall Street Warriors” has something for you.
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6. The Ascent of Money (2008)
The documentary traces the origins of money, credit, and banking throughout history.
The title is interesting because it provides a comprehensive overview of how money has evolved over time. The documentary also interviews experts from various financial backgrounds, which makes it an insightful watch for anyone looking to gain a better understanding of finance.
The Ascent of Money is a 2008 documentary film written and directed by Michael Lewis and won an International Emmy Award.
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7. Floored (2009)
The documentary focuses on the futures exchange in Chicago, and how digitization and computerization are changing trading floor practices. It features interviews with various traders who offer their insights into this rapidly-changing industry.
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8. Million Dollar Traders (2009) – Mini Series
These ordinary traders did better than the pros. Some of the best traders included a student, a soldier, and a single mother of 2 children. They may have lacked experience, but they made up for it with guts and determination.
The reality mini-series happens during the recession of 2008 – also known as not a great time to be a trader. As the market falls, the story becomes personal for many of these non-traditional traders.
In fact, this is similar to what Teri Ijeoma is doing today.
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9. Capitalism: A Love Story (2009)
Capitalism: A Love Story is a 2009 documentary film written and directed by Michael Moore. The film examines the financial crisis of 2007-2008 and the subsequent economic recession.
The criticism in Capitalism: A Love Story is clearly pointed at businesses that take risks for profit-led motives, with public funds ultimately securing the risk. For example, Moore interviews former Merrill Lynch CEO John Thain, asking how much money he made while his company was losing $8 billion per quarter.
Moore interviews many too financial gurus to ask the question – What is America’s cost for its love of capitalism?
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10. “Inside Job” (2010)
Inside Job is a made-for-television documentary about the Fall 2008 financial crisis.
This documentary tackles the 2008 financial collapse in a way that is easily digestible, featuring interviews with experts in the field of finance. The film takes a look at some of the factors which led to the Great Recession, such as deregulation and Wall Street executives going unpunished.
The film walks viewers through topics such as extreme consolidated power on Wall Street, questionable banking practices which helped create the housing bubble, and federal regulators’ bailout that kept most big banks afloat after the 2008 financial collapse.
The movie was directed by Charles Ferguson, and it won an Academy Award for Best Documentary in 2011.
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Most Acclaimed Wall Street Movies
Many people ask, is there any movie on stock market? In fact, there are plenty!
In fact, there is probably a new flourish of movies being made about the economic effects from 2020 onward.
These are the top Wall Street Movies you must watch!
What is your favorite movie about wall street?
Everyone will have their favorite pick!
Start a movie club and discuss which Wall Street movies. This is a great way to understand the impact of what is going on in the financial markets.
Which Must Watch Stock Market Movies are on Your List?
These movies and documentaries are incredibly informative to find out what is happening on Wall Street and how things are handled.
They offer great insights into what can happen when things go wrong on Wall Street. If you’re interested in finance or investment banking, I highly recommend watching these movies!
More Resources for You…
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You can pay rent with any credit card and earn rewards on the entire payment. But even if your credit limit can accommodate the transaction, there’s a catch: You generally have to use a payment portal that tacks 2% to 4% onto the transaction. That’s more than enough to offset any rewards you’d earn.
Bilt Mastercard offers a way around that. It has a built-in rent payment portal that lets you pay your rent without the transaction fee. You earn a 1% return on those rent payments too.
Transaction-fee-free rent payments with rewards is Bilt Mastercard’s biggest selling point, but it’s not the card’s only notable feature. Bilt Mastercard has some additional upsides — and downsides — to consider before you apply.
What Is Bilt Mastercard?
Bilt Mastercard is a rewards credit card with no annual fee. It’s one of the few credit cards that waives transaction fees on rent payments, significantly reducing the cost of paying rent with a credit card.
Bilt Mastercard has an above-average rewards program that earns points on everything you buy — double and triple points on common purchases like travel and dining. Heavy spenders can move up the Bilt Rewards hierarchy, earning points toward travel, experiences, or even a down payment on a house.
What Sets Bilt Mastercard Apart?
Bilt Mastercard has a few unusual features that set it apart from most rewards credit cards.
No transaction fee on rent payments. When you pay your rent with Bilt Mastercard, you don’t pay a transaction fee. That’s a big advantage over other rent payment portals, which charge at least 2% for rent payments.
The opportunity to build credit through rent payments. If you live at any of the more than 1 million units in the Bilt Rewards Alliance, a group of 20-plus property management companies, you can opt into a credit reporting program that alerts the major credit bureaus to your rent payments. That can become part of your strategy to build or rebuild credit faster.
Double points on the first day of the month. Bilt Mastercard doubles your point earnings on all purchases you make on the first of the month — Rent Day. That’s 6x points on dining purchases, 4x points on travel purchases, and 2x points on everything else. Plan your spending accordingly, especially big-ticket purchases.
Is Bilt Mastercard Legit?
Yes, Bilt Mastercard is legitimate. While Bilt itself isn’t very well known, this credit card is backed by Wells Fargo, one of the biggest banks in the United States (and world).
Funds held with Wells Fargo are FDIC-insured, and it’s one of the few banks qualifying as “too big to fail,” so it’s not going anywhere. If it does, we all have bigger problems than whether this one credit card is a scam.
Key Features of Bilt Mastercard
Bilt Mastercard touts its transaction fee-free rent rewards. But that’s just one feature on a much bigger menu.
Earning Bilt Rewards
Bilt Mastercard has a tiered rewards program. The rewards you earn depend on what category your purchase falls into. But overall, it’s a generous rewards program.
Unlimited 3x rewards on dining: Earn 3 points per $1 spent on eligible dining purchases, including takeout and delivery.
Unlimited 2x rewards on travel: Earn 2 points per $1 spent on travel booked directly with the provider, including airfare, hotels, rental cars, and cruises. Purchases through third-party booking engines like Expedia may not qualify.
1x rewards on rent payments: Earn 1 point per $1 spent on rent payments, even if your unit isn’t part of the Bilt Rewards Alliance. Bilt caps rent rewards at 100,000 points each year, high enough for most cardholders.
Unlimited 1x rewards on everything else: Earn 1 point per $1 spent on all other eligible purchases.
You have to make at least five transactions in a statement period to earn rewards for that period. That rules out using Bilt Mastercard for rent payments only.
Redeeming Bilt Rewards
You can redeem Bilt rewards for:
Direct travel purchases with over 100 airline and hotel partners
Transfers to more than a dozen airline and hotel partners, generally at a 1-to-1 ratio
Rent payments
Credit toward a down payment on a home
Experiences and merchandise, including classes with fitness partners like SoulCycle and home decor and apparel brands in the Bilt Collection
Redemption minimums and values vary, but if you travel regularly, the most reliable value comes from transfers to airline and hotel partners. Otherwise, rent payments are your best bet.
Bilt Rewards Status Levels
Bilt’s rewards program has four tiers based on your annual point earnings. Each tier unlocks new benefits:
Blue: Everyone starts as a Blue member.
Silver: Unlocks when you earn 25,000 points in a calendar year. Perks include a 10% bonus on Bilt points when you begin or renew an apartment lease with a Bilt Rewards Alliance members. So if your first month’s rent on a qualifying lease is $2,000, you earn 200 bonus points.
Gold: Unlocks with 50,000 points earned in a calendar year. With Gold, the points bonus for a new or renewed lease jumps to 25%. Plus, you get access to Bilt’s Homeownership Concierge, a homebuying consulting service.
Platinum: Unlocks with 100,000 points earned in a calendar year. The lease incentive bonus increases to 50% and you get an exclusive gift from the Bilt Collection — typically some sort of home decor item.
Building Credit With Rent Payments
If you wish, you can allow Bilt to report your rent payments to the three major credit bureaus (Experian, Equifax, and TransUnion). That may help you build credit faster, especially if you don’t have many other credit accounts. But it can also hurt you if you stop paying rent for any reason or you’re late on rent payments.
Travel Benefits
Bilt Mastercard has some potentially valuable non-rewards travel benefits too.
Trip cancellation and interruption coverage reimburses nonrefundable prepaid reservations you have to cancel so long as you have a valid reason, such as illness
Trip delay reimbursement covers nonrefundable prepaid reservations you can’t honor due to covered flight or other transport delays
Car rental insurance covers costs related to collision damage to your rental car when you pay for the rental in full with your Bilt card and decline the rental company’s offer of coverage
Additional Benefits
Bilt Mastercard has some other complimentary benefits:
$5 Lyft credit per statement period when you complete at least three rides
$5 credit off your first DoorDash order each month
Three-month complimentary DoorDash DashPass subscription, which waives the delivery fee on eligible orders
Cellphone protection, which covers damage and theft up to $800 per claim (less a $25 deductible)
Ongoing APR
From day one, Bilt Mastercard’s APR is 20.99%, 23.99%, or 28.99%, based on your creditworthiness. There’s no introductory APR promotion for purchases or balance transfers.
Important Fees
Bilt Mastercard has no annual fee or foreign transaction fees. Other fees may apply, including balance transfer and cash advance fees.
Credit Required
Bilt Mastercard has relatively laid-back standards. It’s not for people with bad credit, but your application may be approved, even if your FICO credit score is below 700. For more information, see our article about good versus bad credit scores.
Advantages
Bilt Mastercard has an above-average rewards program, multiple perks and benefits for renters, and some potentially valuable benefits for cardholders who use rideshare and restaurant delivery services.
Up to 3x points on eligible purchases. Bilt Mastercard earns 3 points per $1 spent on dining purchases, on par with premium dining credit cards like Chase Sapphire Reserve.
Earn rewards on rent payments without the transaction fee. Bilt Mastercard earns 1 point per $1 spent on rent payments. That’s nice, but the real value is in the transaction fee waiver, which can save you 2% to 4% when compared to other rent payment portals.
Earn double points on Rent Day. Bilt Mastercard doubles rewards on all purchases made on the first of the month. That boosts the maximum return to a very generous 6x.
More points as you ascend status levels. Earn at least 25,000 points in a year to unlock higher status levels, with benefits like bonus points on new and renewed leases at Bilt Alliance properties.
No annual fee. Bilt Mastercard has no annual fee, so you won’t pay anything to keep it around. This is a welcome contrast with some other premium dining and travel credit cards.
DoorDash and Lyft perks. They won’t make you rich, but Bilt Mastercard offers perks for regular DoorDash and Lyft users (or users willing to switch). Both are worth at least $5 per month if you meet the qualifications.
Relaxed standards. Bilt Mastercard has looser standards than many competing cards, which require FICO scores above 700 to qualify (and sometimes well above).
Opportunity to build credit with rent payments. If you live in a unit managed by a member of the Bilt Rewards Alliance, you can agree to have your rent payments reported to the major credit bureaus. That can build your credit faster than simply using your credit card, though it can also hurt your credit if you stop paying rent.
Disadvantages
Bilt Mastercard is missing some common rewards card features and falls flat on purchases outside the dining and travel categories, among other disadvantages.
Minimum transaction requirement to earn rewards. You must make at least five transactions in a statement period to earn rewards for that period.
Low rewards rate on most purchases. Even if you clear the transaction threshold, you earn just 1 point per $1 on most purchases. That’s lower than competing credit cards like Chase Freedom Unlimited (1.5% back on most purchases) and Citi Double Cash (2% back on all purchases when you pay in full).
No sign-up bonus. Bilt Mastercard has no spend-based sign-up bonus. Many other no-annual-fee rewards cards do, so that’s a notable absence.
No 0% APR introductory offer. Bilt Mastercard also has no 0% APR introductory offer, which is a big downside for new cardholders looking to finance big purchases or pay off high-interest balances from another card.
How Bilt Mastercard Stacks Up
Bilt Mastercard really leans into its rent payment benefits, but if you zoom out, it looks like a fairly typical travel and dining credit card. So before you apply, see how it stacks up against another popular credit card that rewards dining and travel: the Chase Sapphire Preferred Card.
Bilt Mastercard
Chase Sapphire Preferred
Dining Rewards
Unlimited 3x
Unlimited 3x
Travel Rewards
Unlimited 2x
Unlimited 2x or 5x
Base Rewards
1x (limited only on rent)
Unlimited 1x
Double Points Day
Yes
No
Travel Credit
None
$50 on eligible hotels
Sign-Up Bonus
None
Yes
Rent Transaction Fee
None
Yes
Annual Fee
$0
$95
Final Word
Bilt Mastercard is the best credit card to use for rent payments because it waives the customary transaction fee, which can add 2% to 4% to the cost, depending on which payment portal you use. It has some other benefits too, including unlimited 3x rewards on dining purchases and unlimited 2x rewards on travel purchases. And it has no annual fee.
But Bilt Mastercard has some meaningful drawbacks. It lacks a sign-up bonus or 0% APR introductory promotion, and its baseline rewards rate is low. Most important, you have to make at least five transactions in a statement period to earn rewards for that period, which rules out getting it just to use on rent payments or infrequent use in general.
Still, Bilt Mastercard is a contender if you’re a renter in the market for an entry-level rewards credit card.
The Verdict
Our rating
Bilt Mastercard
Regular Rewards Rate: 1x points on most eligible purchases (including rent)
Bonus Rewards Rate: 2x points on travel purchases and 3x points on dining purchases
Annual Fee: $0
Ongoing APR: 20.99%, 23.99%, or 28.99%, based on your creditworthiness
Credit Needed: Average or better
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.