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It's easy to have an emotional reaction to bank failures. I've written about finances for decades, and still have a moment of low-level panic when news of a bank failure breaks. Fortunately, it doesn't last long because I know there are safety features in place, designed to protect us if our financial institutions go belly up.
There were a few prominent bank failures in 2023 that shook a lot of people's confidence. Other people worry about how safe their bank might be in case of identity theft. The good news is: despite a few alarming headlines when banks fail, most people's bank accounts (or credit union accounts) are safer than ever before.
If you bank with a federally insured financial institution, your deposits are protected against bank failure up to $250,000. And there are other protections in case you become a victim of identity theft or fraudulent transactions with your bank account.
To determine the safest banks, we looked for large, established institutions with FDIC protection, different types of security features, and 24/7 customer service. Here are our top picks for the safest banks in the United States.
Bank | The Ascent's Rating | FDIC Insured? |
---|---|---|
Capital One | 4.50 | Yes |
American Express® National Bank | 4.50 | Yes |
Quontic | 4.50 | Yes |
Chase | 4.50 | Yes |
U.S. Bank | 4.50 | Yes |
PNC Bank | 4.50 | Yes |
Western Alliance Bank | 4.25 | Yes |
SoFi | 4.00 | Yes |
Wells Fargo | 4.00 | Yes |
Axos Bank | 3.50 | Yes |
Below is a deeper dive on each of our safest banks, along with an account to consider at each bank.
Savers who want a high APY
Not only does SoFi have standard FDIC backing, but customers can enroll in the SoFi Insured Deposit Program and get access to up to $2 million in FDIC coverage. And did we mention up to 4.60% APY on savings?
SoFi Checking and Savings
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, there's the opportunity for a bonus of up to $300 and a long list of extra account features. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
You can earn the maximum APY either by making direct deposits into checking or savings, or by depositing $5,000 or more every 30 days. Learn more.
Capital One Bank offers all the key features you'd expect from an online bank. These include high APYs, no maintenance fees, and no minimum deposit requirements. It also offers some you wouldn't expect. The bank has a reputation for great customer service, and its teen bank accounts are top notch.
With no fees and no minimum deposit required, the Capital One 360 Performance Savings Account blows our hair back with an APY of 4.25%.
Capital One 360 Performance Savings
Capital One 360 Performance Savings checks all the boxes we look for in a high-yield savings account. It even offers branch locations and Capital One Cafes where customers can seek in-person support (if you live near one). This makes it a great fit when you want to reap the rewards of online banking but aren't quite ready to cut ties with brick-and-mortar banks.
American Express offers above-average rates for savings accounts. Plus, there are no monthly fees and a minimum of just $1 to earn the full APY. It's a good choice for funds you won't touch, like emergency savings or college funds.
Member FDIC, one of the most trusted names in financial services, 24/7 service and support, and a 4.25% annual percentage yield (APY) as of April 25, 2024.
American Express® High Yield Savings
American Express may not have the highest APY on our list, but it still sports a well-above-average rate and a strong reputation. This is a good fit for those who prefer the comfort of a well-known company like American Express that isn't likely to play games with your APY.
Axos Bank does its best to make managing your money flexible and easy. It does this by offering fee-free accounts and a variety of checking account options. Additionally, Axos provides domestic ATM fee reimbursements (so you're not tied to a single ATM network). It's also one of the few banks to offer a free ATM card for its savings account.
FDIC insurance plus key security features like two-step authentication, 128-bit SSL encryption, and anti-fraud account monitoring. And this checking account actually pays interest: 0.40% (up to 3.30%) APY.
Axos Bank Rewards Checking
A solid checking account with an APY that far outpaces the competition. The fact that it also has no maintenance fees and no overdraft or NSF fees are the cherries on top.
Rewards Checking disclosure:
To be eligible to earn all or a portion of the cash incentive as part of the promotional offer "RC500," an application for a Rewards Checking account must be submitted between 06/20/2024 at 12:00 am PT and 07/31/24 at 11:59 pm PT.
Axos Bank reserves the right to limit each primary account holder to one (1) checking account promotional offer per year. Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After initial requirements above are met, the amount of incentive earned will depend on meeting the additional requirements outlined below:
Rewards Checking bonus up to $500: You must be approved for your new Rewards Checking account and fund it within 60 days of account opening. An incentive of up to $500 can be earned during the first six (6) statement cycles, starting in the statement cycle thirty (30) days after the account is opened. A statement cycle is a calendar month consisting of at least one day your account was open during that month. You can earn a maximum of five (5) payouts during the six (6) statement cycles, and the incentive will be deposited into the qualifying account within 15 business days following the end of the statement cycle in which the requirements were met.
$100 will be earned for each statement cycle, up to $500, when you meet two requirements during that statement cycle: 1) your Rewards Checking account receives qualifying direct deposits at least $1,500.00 in total, and 2) the average daily balance in your Rewards Checking account is at least $3,000.
Your Rewards Checking account must remain open and in good standing at the time the incentive is paid to be eligible.
A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability etc. Other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.) or person-to-person payments are not considered a direct deposit. Account transactions may take one or more business days from the transaction date to post to the account.
Quontic Bank offers high CD rates with low minimums and a variety of terms. While the bank doesn't offer 4-year CD terms, you can still build a CD ladder with shorter lengths, such as 6- and 12-month terms.
FDIC insurance, 4.50% APY, plus added security features like multi-factor authentication and mobile app TouchID.
APY = Annual Percentage Yield
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a 4-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
While rates are higher than most, Western Alliance Bank does not operate like your traditional bank. All deposits are managed through a secure digital platform called Raisin. Raisin accounts are fairly bare-bones, without the features offered by other banks.
FDIC insurance, a well-respected $65 billion bank, and a great 5.05% APY.
APY = Annual Percentage Yield
Western Alliance Bank offers some of the highest APYs we've seen across short-term CDs through the Raisin platform. Its CDs have low $1 minimums, and relatively low withdrawal penalties without any additional fees. But you will need to look elsewhere for terms longer than one year.
3 Mo. APY | 5 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY |
---|---|---|---|---|
5.21% | 5.16% | 5.13% | 5.10% | 5.05% |
Chase has one of the largest branch networks in the nation. But it doesn't neglect the online experience. It offers simple online and mobile tools to manage your funds. If you have one account with Chase, there's a good reason to open one or two more. The reason is the bank's strong relationship benefits. What's more, the bank's customer service shines.
The Chase Total Checking® account is a great option for those who place a premium on customer service, easy access to their funds, and a large branch network. As long as you keep enough money here to avoid the maintenance fee, you shouldn't have any problems with this account.
Chase Total Checking®
Chase Total Checking® combines tons of features with superior customer service. It's a safe place to put your money. You can walk into any of thousands of branches and withdraw cash from more than 15,000 ATMs in Chase's network. You can access everything online, too. It's one of the best checking accounts for in-person and over-the-phone customer service.
*With Chase Overdraft Assist℠, we won't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts.
Wells Fargo offers a variety of banking accounts and relationship benefits, including rare perks like loan discounts to those with multiple accounts. It's also one of the few banks to offer a debit card to savings account customers, and its branch network shines with a large national footprint.
U.S. Bank offers strong relationship rewards to customers who open multiple accounts. It also offers a variety of checking accounts and some rare CD and loan options. Those interested in money market accounts will also appreciate that U.S. Bank has several to choose from.
PNC Bank seems to go the extra mile to ensure its customers have a good experience. It offers relationship benefits that reward customers for opening multiple accounts and keeping large sums in the bank, and it's also earned a lot of praise from third parties for its excellent customer service. PNC's APY is competitive and the bank offers some impressive banking options for students.
Offer | APY | Minimum to Earn APY | Rating | Next Steps | |
---|---|---|---|---|---|
SoFi Checking and Savings
Member FDIC.
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.
|
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
|
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.
|
$0
|
||
Capital One 360 Performance Savings
Member FDIC.
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.
|
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
|
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.
|
$0
|
||
American Express® High Yield Savings
Member FDIC.
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.
|
4.25%
Rate info
4.25% annual percentage yield as of June 26, 2024
$1 Minimum to earn APY
Min. to earn: $1
|
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.
|
$1
|
||
Axos Bank Rewards Checking
Member FDIC.
Rating image, 4.25 out of 5 stars.
4.25/5
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.
|
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
|
Rating image, 4.25 out of 5 stars.
4.25/5
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.
|
Monthly direct deposits totaling at least $1,500
|
||
Rewards Checking disclosure: To be eligible to earn all or a portion of the cash incentive as part of the promotional offer "RC500," an application for a Rewards Checking account must be submitted between 06/20/2024 at 12:00 am PT and 07/31/24 at 11:59 pm PT. Axos Bank reserves the right to limit each primary account holder to one (1) checking account promotional offer per year. Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After initial requirements above are met, the amount of incentive earned will depend on meeting the additional requirements outlined below: Rewards Checking bonus up to $500: You must be approved for your new Rewards Checking account and fund it within 60 days of account opening. An incentive of up to $500 can be earned during the first six (6) statement cycles, starting in the statement cycle thirty (30) days after the account is opened. A statement cycle is a calendar month consisting of at least one day your account was open during that month. You can earn a maximum of five (5) payouts during the six (6) statement cycles, and the incentive will be deposited into the qualifying account within 15 business days following the end of the statement cycle in which the requirements were met. $100 will be earned for each statement cycle, up to $500, when you meet two requirements during that statement cycle: 1) your Rewards Checking account receives qualifying direct deposits at least $1,500.00 in total, and 2) the average daily balance in your Rewards Checking account is at least $3,000. Your Rewards Checking account must remain open and in good standing at the time the incentive is paid to be eligible. A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability etc. Other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.) or person-to-person payments are not considered a direct deposit. Account transactions may take one or more business days from the transaction date to post to the account. |
Rewards Checking disclosure: To be eligible to earn all or a portion of the cash incentive as part of the promotional offer "RC500," an application for a Rewards Checking account must be submitted between 06/20/2024 at 12:00 am PT and 07/31/24 at 11:59 pm PT. Axos Bank reserves the right to limit each primary account holder to one (1) checking account promotional offer per year. Promotional terms and conditions are subject to change or removal without notice. Incentive may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After initial requirements above are met, the amount of incentive earned will depend on meeting the additional requirements outlined below: Rewards Checking bonus up to $500: You must be approved for your new Rewards Checking account and fund it within 60 days of account opening. An incentive of up to $500 can be earned during the first six (6) statement cycles, starting in the statement cycle thirty (30) days after the account is opened. A statement cycle is a calendar month consisting of at least one day your account was open during that month. You can earn a maximum of five (5) payouts during the six (6) statement cycles, and the incentive will be deposited into the qualifying account within 15 business days following the end of the statement cycle in which the requirements were met. $100 will be earned for each statement cycle, up to $500, when you meet two requirements during that statement cycle: 1) your Rewards Checking account receives qualifying direct deposits at least $1,500.00 in total, and 2) the average daily balance in your Rewards Checking account is at least $3,000. Your Rewards Checking account must remain open and in good standing at the time the incentive is paid to be eligible. A direct deposit is an electronic deposit of your paycheck or government benefits, such as Social Security, Disability etc. Other deposits (i.e., online banking transfers, ATM and mobile check deposits, etc.) or person-to-person payments are not considered a direct deposit. Account transactions may take one or more business days from the transaction date to post to the account. |
||||
Chase Total Checking®
Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5
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.
|
0%
Min. to earn:
|
Rating image, 3.50 out of 5 stars.
3.50/5
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.
|
|
||
*With Chase Overdraft Assist℠, we won't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts. |
*With Chase Overdraft Assist℠, we won't charge an Overdraft Fee if you're overdrawn by $50 or less at the end of the business day OR if you're overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts. |
Before handing your hard-earned cash over to a bank for safekeeping, you want to know that the bank is safe. Although there's not one single quality that marks the safest bank, there are a collection of features that can help you rest easy.
Here are the most common security features you should look for in any bank:
We'll go into these in more detail below.
If you're looking for a bank that's especially locked down, you may want to keep an eye out for some more unusual security features. Here are some of the features that are considered "extra":
These extra layers of protection are great to have, but may not be available -- even at a strong bank. For example, a bank may be solid as a rock, FDIC insured, and offer a great APY, but not be available 24 hours a day.
If a bank does not offer a particular feature, ask yourself how directly it will impact the security of your deposits.
Not necessarily.
You may hear someone say that credit unions are "safer" than banks (or vice versa). The reality is that a financial institution is as safe as its security measures.
Just as a secure bank is FDIC insured, a secure credit union is insured by the government-backed National Credit Union Administration (NCUA). The point is not whether it's a bank or credit union that houses your money. It's how serious that institution is about protecting your funds.
While bank failures are rare, they do happen. According to FDIC data, during 2001-2024, there were a total of 567 bank failures in the U.S. There are laws in place to make banks more secure, but as consumers, we still play a role. Before parking our money anywhere, we need to do our due diligence to make sure the bank in question has enough security in place to help us rest easier at night.
The Federal Deposit Insurance Corporation (FDIC) is an independent federal government agency that protects depositors like you against the loss of deposits due to bank failure. The FDIC is backed by the full faith and credit of the U.S. government.
Deposits in certain account types are insured for up to $250,000 per depositor, per FDIC-insured bank, and per ownership category. For example, if you and spouse each have $175,000 deposited at the same bank, the full $350,000 would be insured because it is split between two depositors.
Keep in mind that just because a bank has FDIC insurance, that doesn't mean your money is protected by FDIC insurance from all possible risks and threats. FDIC insurance only protects your money from bank failure, and only up to $250,000 per depositor, per bank, and per ownership category.
Here are a couple examples of risks and threats not covered by FDIC insurance:
What if you have more than $250,000 in your bank account, or more than FDIC insurance will cover? These are also called "uninsured deposits." In case you have more money in the bank than the FDIC insures, you might need to open multiple accounts at multiple FDIC-insured banks.
If you're concerned that you might have too much cash in the bank to be protected by the FDIC, use the FDIC's Electronic Deposit Insurance Estimator (EDIE) to see how much deposit insurance you qualify for.
In case someone steals money from your bank account, commits identity theft against you, or otherwise creates unauthorized transactions with your account, this activity is not protected by FDIC insurance.
However, as a bank customer in the U.S., you have other protections. As long as you report the fraud, missing money, or other unauthorized transactions promptly, the bank or credit union cannot hold you accountable for more than $50 or $500 of unauthorized transactions.
As a bank or credit union account customer, you have a responsibility to keep an eye on your account balance and watch out for any unauthorized activity. If someone has stolen money from you, stolen your identity, or otherwise used your account in a fraudulent way, contact your bank or credit union immediately.
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Yes, as long as a bank is FDIC insured or a credit union has NCUA insurance in place, up to $250,000 per customer (per account) is safe. You want to see that sticker on the front door that reads "Member FDIC" or "Member NCUA," or find it listed on the FDIC or NCUA website.
Not necessarily. What determines a financial institution's safety is the number of security features it has in place and whether the federal government insures its deposits.
Not necessarily. If a financial institution has a solid plan to protect your money, it doesn't matter whether it's a regional bank or national bank. The level of security that a bank has in place determines how safe it is.
Most online banks offer the best of both worlds -- they're FDIC-insured like your local bank, and they operate with less overhead, meaning they don't need to nickel and dime you with ridiculous junk fees. Before committing yourself to an online bank, make absolutely sure that it is FDIC insured. There are two ways to check:
Read More: Are Online Banks Safe?
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.