Banking
Get the full rundown on bank accounts, including the best picks for your money and essential education on checking, savings, and CD accounts.
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FAQs
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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.
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An online bank is a financial institution that takes deposits and makes loans online, without any physical branches.
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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, 4.75 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
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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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
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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.
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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
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May 3, 2024 | By Lyle Daly
Should You Move Your Emergency Fund Into a CD Before Rates Drop?
CD rates are high right now, but this won't last forever. Find out if you should lock in a high rate for your emergency fund by putting it into a CD.
May 2, 2024 | By Christy Bieber
CD Rates Are Near Record Highs. 3 Reasons You Still May Not Want to Buy One
You can open a CD paying well above 5.00% right now. Keep reading to learn why a CD might not be right for you.
May 2, 2024 | By Natasha Etzel
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May 2, 2024 | By Ashley Maready
5 Factors to Weigh When Choosing Your First CD
CDs are red hot right now. Here's how to choose between multiple options from multiple banks.
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2 Reasons Buying a CD May Make More Sense Than Paying Extra on Your Home Loan
If you're paying extra on your mortgage, or thinking about doing so, CDs might be worth considering instead. Read on to learn why.
May 2, 2024 | By Kailey Hagen
3 Checking Account Features That Are Overrated and 3 That Really Matter
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May 2, 2024 | By Maurie Backman
The Fed's Latest Decision on Interest Rates Is Great News for Savers. Here's Why
The Fed just voted to keep interest rates steady. Read on to see why that might benefit you.
May 2, 2024 | By Steven Porrello
The Single Best Strategy for Maximizing CD Profits in May 2024
CDs continue to pay out at generous rates in May 2024. Find out how to make CDs work even harder for you this month.
May 1, 2024 | By Christy Bieber
A CD Ladder Could Be a Perfect Investment for Retirees. Here's Why
A CD ladder is a great place to keep money you don't want in the market. Find out why it's ideal for retirees who need generous returns, but accessible cash.
May 1, 2024 | By Maurie Backman
Why You Should Lock in a CD ASAP After the Fed's Latest Decision
The Fed just made an announcement on interest rates. Read on to see why it should prompt you to open a CD.
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