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.
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
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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
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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
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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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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April 26, 2024 | By Kailey Hagen
This Bank Is Offering a $2,500 Bonus to Some New Customers Until July 8
Citibank is offering a checking account bonus worth up to $2,500. Find out what you have to do to earn it.
April 26, 2024 | By Christy Bieber
CD Rates Could Stay High for a While. Here's Why That's Actually Bad News for Savers
If the Federal Reserve doesn't lower interest rates, CD rates will remain high. Find out why this could be a drawback if you have a lot of savings.
April 26, 2024 | By Cole Tretheway
What to Look for When Opening Your First Savings Account in High School
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April 26, 2024 | By Maurie Backman
Here's Why I Have Two Separate Emergency Funds
This writer has more than one savings account earmarked for unplanned expenses. Read on to see why.
April 26, 2024 | By Maurie Backman
3 Signs Your Money Doesn't Belong in a CD
CDs can be a terrific savings tool. But read on for some signs that your money shouldn't go into one.
April 25, 2024 | By Maurie Backman
3 Reasons to Move Money Out of Your Savings Accounts ASAP
It's good to have some money in savings. But if these signs apply to you, it may be time to find another home for your cash.
April 25, 2024 | By Christy Bieber
These 3 Banks Are Offering New Account Bonuses That Are Easy to Earn
Fifth Third Bank, Citibank, and Bank of America are all offering bonuses with relatively low direct deposit requirements. Check out these bank offers.
April 25, 2024 | By Maurie Backman
Here's What Happens When You Don't Have at Least $500 in Emergency Savings
Having little to no emergency savings could cost you a lot of money over time. Read on to learn more.
April 25, 2024 | By Matt Frankel, CFP®
The Fed Might Not Lower Interest Rates in 2024. Here's What That Means for CD Rates
It's getting less likely we'll see significant rate cuts in 2024. And this could have implications for CDs. Keep reading to learn more.
April 24, 2024 | By Steven Porrello
Will Hotter-Than-Expected March Inflation Push CD Rates Higher?
Annual inflation in March was higher than expected. Read on to learn how this might affect CD rates.
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