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, 4.00 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 |
4.50%
Min. to earn: $0.01
|
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 |
5.00% 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
|
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
June 1, 2024 | By Christy Bieber
Thinking of Buying a CD? You Should Buy 5 Instead
Instead of buying just one CD and having to choose between the best rate and a longer term, you should consider a CD ladder. Find out why.
June 1, 2024 | By Chris Neiger
The Hidden Downside of Leaving Lots of Money in Your Savings Account
Even savings accounts have drawbacks. Read to find out when these accounts aren't the best option.
June 1, 2024 | By Devon Delfino
Here's How Much Interest You Can Earn on $5,000 in Savings
Putting $5,000 in a savings account can earn you anywhere from just $25 up to $250. Here's why there's such a big disparity and how to pick the best account.
June 1, 2024 | By Kailey Hagen
5 Reasons to Switch Banks in June
Switching banks can save you time and money. Here are five big reasons you should consider dumping your old bank in June.
May 31, 2024 | By Kristi Waterworth
Here's What Happens When You Withdraw $10,000 From Your Bank Account
Removing $10,000 from your own bank account can come with complications. Find out why here.
May 31, 2024 | By Emma Newbery
CDs Are Great. But Here Are 3 Better Ways to Build Wealth
Americans have flocked to CDs, attracted by the high APYs. If you want to get rich, find out why investing in stocks or real estate could make more sense.
May 31, 2024 | By Maurie Backman
3 Reasons Not to Open a CD in 2024 -- Even Though Rates Are Outstanding
CD rates are really attractive right now. But see why you may be better off steering clear of a CD this year.
May 31, 2024 | By Maurie Backman
Raided Your Emergency Fund After a Layoff? Here's How to Rebuild It
It's easy to blow through your savings when you don't have a job. Here's how to get back to where you started.
May 30, 2024 | By Maurie Backman
Why I Wouldn't Open a 3-Month CD Today
CD rates are high right now. But read on to see why I think a 3-month CD just isn't worth it.
May 30, 2024 | By Maurie Backman
I Just Discovered This Unwanted Surprise in My Bank Account. Here's How I Could've Avoided It
One bank account change is working to my disadvantage. Read on to see how I could've prevented it in the first place.
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.