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.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
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, 4.75 out of 5 stars.
4.75/5
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 |
5.05% APY for balances of $5,000 or more
Rate info
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
|
|
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 |
4.35%
Min. to earn: $0
|
New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
|
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
April 23, 2024 | By Maurie Backman
My Friend Used a Credit Card to Cover a Big Expense Instead of Her Emergency Fund. Here's What It Cost Her
It can be scary to tap your emergency savings. But read on to see why doing so is generally your best move financially.
April 23, 2024 | By Maurie Backman
This Is the Average Weekly Allowance Parents Give Their Kids. How Does Yours Compare?
How do your allowance practices stack up against other parents'? Read on to find out.
April 23, 2024 | By Kailey Hagen
3 Interest-Bearing Bank Accounts That Could Cost You in the Long Run
Earning interest on your savings is great, but some accounts offer you more than others. Here are three to stay away from.
April 23, 2024 | By Matt Frankel, CFP®
Worried Interest Rates Will Keep Rising? These 3 CDs Could Be Your Best Bet
A bump-up CD can be an excellent way to protect against the possibility of rising rates. Read on to learn how.
April 23, 2024 | By Ashley Maready
Ranked: Top HYSA Options for College-Bound Teens
Ready for college? Keep reading for three excellent high-yield savings accounts that can help you get in the habit of saving money.
April 22, 2024 | By Maurie Backman
Do You Need a 12-Month Emergency Fund?
A 12-month emergency fund is overkill for most people. But is that the case for you? Find out how to tell.
April 22, 2024 | By Steven Porrello
3 Reasons Not to Open a CD Right Now, Even With Rates at 5.30%
Despite high rates, now might not be the right time to open a new CD. Keep reading to learn when a CD is the wrong move for you.
April 22, 2024 | By Matt Frankel, CFP®
2 Great Banks That Will Pay You to Open an Account
Thinking of moving to an online bank? Find out how you can get up to $300 for doing it.
April 22, 2024 | By Maurie Backman
Will CDs Still Make Sense When and if Interest Rates Fall This Year?
Interest rate cuts are likely for 2024. Find out how that might affect CDs.
April 22, 2024 | By Matt Frankel, CFP®
3 High-Yield Savings Accounts That Have a High APY and Other Great Perks
There's more to choosing a savings account than a high APY. Read on for three that offer some unique benefits.
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 does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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.