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 7, 2024 | By Christy Bieber
3 Reasons to Buy a CD in May
May is an ideal time to buy a CD, for a few key reasons. Read on to learn more about why you may want to take action now.
May 6, 2024 | By Chris Neiger
Here's What Happens When a Young Investor Starts a CD
CDs are a popular investment option. Read on to see four things you should know about CDs before jumping in.
May 6, 2024 | By Kailey Hagen
Why I Like Savings Accounts More Than CDs, Even Though CD Rates Are Over 5%
CDs can help you lock in high interest rates, but they have their drawbacks, too. See why I prefer to keep my cash in a savings account.
May 6, 2024 | By Kailey Hagen
U.S. Bank Is Offering New Customers Up to $700 Until June 27. Should You Go for It?
U.S. Bank is offering an impressive sign-up bonus, but there's more to consider before opening accounts here. Here's what you need to know.
May 6, 2024 | By Steven Porrello
3 Reasons You Shouldn't Open a High-Yield Savings Account, Even With Rates at 5.55%
The best high-yield savings accounts have mind-boggling APYs. But here are three reasons you might want to avoid them in 2024.
May 6, 2024 | By Ben Gran
Why You Shouldn't Be in Any Big Rush to Open a CD
Want to open a CD in 2024? Based on the Fed's latest interest rate moves, here's why there's no need to hurry.
May 6, 2024 | By Steven Porrello
This Is How Much Money You Can Make With $20K in a 5-Year CD
CDs are risk-free investments with generous interest rates. Find out how much you can earn over five years with $20,000 invested.
May 5, 2024 | By Christy Bieber
Suze Orman Thinks Retirees Should Invest in CDs. Should You Listen to Her?
CD rates are up and let you lock in a rate for the duration of the account's term. Learn why CDs can be a good option for retirees.
May 5, 2024 | By Ben Gran
Top 8 Ways You Could Be Missing Out on Free Money
Do you ever get the nagging suspicion that you could be earning more money for free? Keep reading to see how to get that money back.
May 5, 2024 | By Steven Porrello
Don't Make These 3 Common Expensive Mistakes With Your CDs
CDs are FDIC-insured and relatively risk free. But if you make any of these three errors, you could be missing out on bigger returns. Read on for more.
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.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. American Express 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. Discover Financial Services 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.