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.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| 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, 4.00 out of 5 stars.
4.00/5
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 |
5.25%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
|
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 19, 2024 | By Ben Gran
Why You Shouldn't Get Too Dazzled by CD Rates (Even at 5.15% APY)
Want to beat the best CDs? Even though CD rates are at 5.15% APY, you can do better. See where to put your money for even higher ROI on your cash.
May 19, 2024 | By Steven Porrello
3 Reasons I'm Not Touching 12-Month CDs, Even With Rates at 5.25%
12-month CD rates are at a two-decade high. Find out why this writer is avoiding 12-month CDs for the near future.
May 19, 2024 | By Lyle Daly
This Is How Much Money You Can Make With $5,000 in a CD Ladder
A CD ladder is a popular strategy to take advantage of high CD rates. Check out how it works and see the amount you could earn if you invested $5,000 this way.
May 19, 2024 | By Chris Neiger
CDs vs. Mutual Funds: What's the Better Investment Now?
Both options offer investors decent returns. Learn how to choose the right one for your needs.
May 19, 2024 | By Ben Gran
Why This $400 Checking Account Bonus Is a Great Deal
Huntington Bank offers $400 if you qualify for a new Perks Checking account by June 22, 2024. Learn why it's worth a look if you need a new account.
May 19, 2024 | By Robin Hartill, CFP
With Rates at 5.15%, Should You Put CDs in Your Roth IRA?
High CD yields could mean a higher tax bill. Find out whether the potential tax savings makes a Roth IRA the right place for holding CDs.
May 19, 2024 | By Chris Neiger
Ranked: The Top 5 Reasons to Invest in CDs
CDs can be a good investment choice. Read on to learn the most popular reasons investors choose them.
May 18, 2024 | By Chris Neiger
CD Rates Are Over 5% -- and I Still Think They're a Waste of Money
Many investors are interested in CDs right now. Read on to find out why other options might be better.
May 18, 2024 | By Ashley Maready
3 Better Places for Your Money Than CDs
Despite the buzz that CDs have right now, they're not the right fit for everyone's money. Read on for three other options to grow your cash.
May 18, 2024 | By Ben Gran
How to Overcome These 5 Bogus Fears and Open a 5.00% APY Savings Account
So you're thinking about opening a 5.00% APY savings account -- but you have some worries. See how to overcome the fears, and get the "free money."
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.