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Banking

Get the full rundown on bank accounts, including the best picks for your money and essential education on checking, savings, and CD accounts.

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield

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.

Show Best Offers Available in

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. 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
N/A
4.35%
Rate info Circle with letter I in it. 4.35% annual percentage yield as of March 18, 2024
Min. to earn: $1
N/A
5.05% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 5.05% 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

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

Recent Articles

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March 18, 2024 | By Christy Bieber

Should You Keep Your Emergency Fund in a CD?

Keeping your emergency fund in a CD is typically not a good idea. Check out a few reasons why you could regret buying a CD with emergency cash.
March 18, 2024 | By Chris Neiger

Why CDs Are a Great Investment for People Who Don't Like Risk

Losing money stinks. Read on to learn five reasons why CDs are great for risk-averse investors.
March 18, 2024 | By Ben Gran

10 Better Places to Put Your Money Than a Checking Account

Too many people have extra cash sitting in a checking account. Are you one of them? Here are 10 better choices for how to invest your money in 2024.
March 18, 2024 | By Kailey Hagen

If You Plan to Do These 3 Things With Your Money, You Definitely Shouldn't Invest It in a CD

CDs are one way to grow your wealth, but they're not your only option. Check out three times CDs aren't a good fit.
March 18, 2024 | By Maurie Backman

Not a Fan of CDs? Here's Why You May Want to Change Your Tune -- for Now

CDs have their drawbacks, but you may want to consider one today for one specific reason. Read on to learn more.
March 17, 2024 | By Christy Bieber

Saving for a Really Big Purchase? Be Aware of This Risk

If you have a large amount of cash in the bank, you may be risking loss. Keep reading to learn about FDIC insurance on deposit accounts.
March 17, 2024 | By Kristi Waterworth

Why Every Investor Should Consider CDs in Their Portfolio

CDs are stable assets that appreciate without input, making them worth a second look. Read on to learn more.
March 17, 2024 | By Steven Porrello

5 Common Mistakes People Make With CDs -- and How to Avoid Them

With rates topping 5%, CDs are an attractive offer right now. Learn which errors people typically make with CDs.
March 17, 2024 | By Ben Gran

This Is the Only Type of CD I Would Consider Opening in 2024

No-penalty CDs give you some of the benefits of a CD, without the early withdrawal penalties. See how to earn yield and stay flexible with your savings.
March 16, 2024 | By Steven Porrello

How to Choose the Right Savings Account: 5 Things to Look For

Choosing the right savings account doesn't have to be overwhelming. Keep reading for a list of features to find.