Banking
Get the full rundown on bank accounts, including the best picks for your money and essential education on checking, savings, and CD accounts.
Start comparing banks
The Motley Fool's top banking resources
FAQs
-
A bank is an institution where anyone (approved by the bank) can deposit savings and take out loans. Banks are often seen as a convenient and secure way to store money, and some account types also earn interest. Most banks have both online and in-person services.
-
An online bank is a financial institution that takes deposits and makes loans online, without any physical branches.
-
A credit union is a nonprofit financial institution that exists to serve its members. Unlike banks, credit unions are owned and operated by their members, with a focus on providing affordable financial products and services.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
|
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.00% APY for balances of $5,000 or more
Rate info
5.00% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
|
N/A
|
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.26%
Min. to earn: $1
|
N/A
|
Dive deeper into our banks library
Types of bank accounts
There are four main types of bank accounts: checking accounts, savings accounts, CDs, and MMAs.
Savings accounts
A savings account is a low-risk account where you can earn interest on your money. It's a great place to save for an emergency fund, a vacation, or a down payment on a home.
Checking accounts
You should open a checking account for money you plan to use for everyday spending. You can withdraw money as often as you like, as long as you don't withdraw more money than you have.
Money market accounts (MMAs)
If checking and savings accounts had a baby, that baby would be a money market account (MMA). MMAs often come with checks or debit cards, like a checking account. They also have high interest rates -- like savings accounts. However, they usually have high minimum balances. You'll have to be able to keep a hefty chunk of cash in the bank at all times if you want to have an MMA.
Certificates of deposit (CDs)
A certificate of deposit (CD), also known as a share certificate if you're using a credit union, is a special type of savings account that offers a higher interest rate -- but there's a catch. When you put the money into a CD, you're agreeing that you won't touch it for the length of the CD term. This can be anywhere from a few months to several years. Usually, the longer the loan term, the higher the interest rate.
Keep learning about banking
What is a debit card?
How to Open a Bank Account
What is the Fed Funds Rate?
What is FDIC Insurance?
Recent Articles
View All Articles
May 14, 2024 | By Maurie Backman
Can Severance Take the Place of Your Emergency Fund After a Layoff?
Some workers are eligible for severance pay when their jobs are eliminated. Read on to see why falling back on that option is pretty dangerous.
May 14, 2024 | By Dana George
Want to Buy CDs? Here's Why You Need a (Simple) Plan
Investing in a CD could not be any more straightforward. Take a look at a plan that can help you squeeze the most from your investment.
May 14, 2024 | By Maurie Backman
3 Signs You Need Way More Than a 3-Month Emergency Fund
You'll often hear that three months of savings is the minimum amount to aim for. Read on to see why you should be working toward a higher savings goal.
May 14, 2024 | By Christy Bieber
Suze Orman Is Right About CDs, and Dave Ramsey Is Wrong. Here's Why
Both Dave Ramsey and Suze Orman have shared their opinions about CDs, but Orman's stance makes a lot more sense. Read on to learn why.
May 14, 2024 | By Margo Winton Parodi
CD Rates Are Above 5%, but I'm Still Not Investing. Here's Why
CDs have been the talk of the town, thanks to the towering rates of late. But take a look at why they may not be the right move for everyone.
May 14, 2024 | By Maurie Backman
Here's the Single Best CD Investing Strategy for Seniors
CDs could make a lot of sense for those approaching retirement. But read on to see how to set yours up.
May 14, 2024 | By Maurie Backman
Didn't Increase Your Savings in 2023? Here's How to Do Better in 2024
It's a good time to be putting money into savings. Read on for ways to free up cash for that purpose.
May 13, 2024 | By Dana George
4 Things I Don't Like About Investing in CDs
CD rates remain relatively spectacular. Read on for four qualities of certificates of deposit that one writer doesn't especially like.
May 13, 2024 | By Maurie Backman
Americans Earned $315 Billion on Their Savings in 2023. Here's How to Get the Highest Interest Rate Possible
Want to earn more on your money this year? Read on to see how.
May 13, 2024 | By Devon Delfino
CDs: The Most Misunderstood Investment Tool for Young Investors
Certificates of deposit provide an opportunity for serious growth. Read on to learn how younger investors can best take advantage of these tools.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
American Express is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Axos Financial, Bank of America, Goldman Sachs Group, JPMorgan Chase, Target, and U.S. Bancorp. The Motley Fool recommends Barclays Plc and Discover Financial Services. The Motley Fool has a disclosure policy.