What is the largest Black-owned bank in the U.S.?

OneUnited is the largest Black-owned bank in the U.S. It is also FDIC insured and initially launched in 1968.

How do I find out if my bank is Black owned?

Call and ask. It's as simple as that. They'll tell you who owns the bank. You can also check bank websites to see who runs the company.

Black-Owned Banks and Credit Unions 2024

Everyone deserves a safe and supportive place to keep, use, and grow their money. There's a huge imbalance of wealth in the U.S., and Black-owned banks play an important role in balancing the scales a bit.

Here, we'll touch on the history of racism in banking and talk about how the best Black-owned banks have become a source of hope in the Black community.

Why trust The Motley Fool

Our team of experts assessed 100+ banking institutions
We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
Our bank ratings are never influenced by our advertising partners
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.

Ratings Methodology

Rates as of Oct 09, 2024

Carver Federal Savings Bank Community Free Checking

Member FDIC.

Rating image, 3.50 out of 5 stars.

3.50/5

Rating image, 3.50 out of 5 stars.

3.50/5

APY

N/A

Min. To Earn APY

$0

Pros/Cons

No monthly account fee
Low deposit requirement
Visa debit card
Community reinvestment

Low interest rates
Very small footprint

Bottom Line

This is a solid account from a community-minded bank. You can get better interest rates elsewhere, but this isn't a bad option if you prefer a smaller bank and live near one of its limited number of branches in the New York City area.

Our pick for: No-fee ATM access

Why we think this is the best for no-fee ATM access: Carver Federal Savings Bank was founded in 1948 with a mission to serve African American communities that had limited access to traditional financial services. Today, Carver Federal Savings Bank is one of the largest African American-operated banks in the U.S. and its stock is publicly traded (NASDAQ:CARV). Carver Federal Savings Bank offers access to more than 70,000 no-fee ATMs nationwide.

What to consider before opening an account: The Carver Federal Savings Bank Community Free Checking account has no minimum balance, no monthly service charges, and only requires a minimum $50 opening deposit. Along with the bank's extensive network of no-fee ATMs, this account also waives the fees for up to five non-Carver ATM withdrawals per statement cycle. This checking account also has some nice free perks like a free debit card and a free thank you gift.

Ratings Methodology

Rates as of Oct 09, 2024

OneUnited Bank Black Wall Street Checking

Member FDIC.

Rating image, 3.490 out of 5 stars.

3.490/5

Rating image, 3.490 out of 5 stars.

3.490/5

APY

N/A

Min. To Earn APY

N/A

Pros/Cons

The nation’s largest black-owned FDIC-insured bank
Receive direct deposits two days early
AutoSave Debit Card Program
The nation’s largest surcharge-free ATM network

Branches located only in California, Florida, and Massachusetts
Checking account overdraft fees
Low interest rates
High Savings Account excess transaction fees

Bottom Line

OneUnited Bank is the nation’s largest black-owned FDIC-insured bank with offices located in California, Florida, and Massachusetts. It is a designated Community Development Financial Institution (CDFI) that serves low to moderate income communities. OneUnited Bank has the nation’s largest surcharge-free ATM network with over 100,000 ATMs. Its ATM fee-free “Empowerment Network” includes retailers such as 7-11, Walgreens, CVS, Target, Costco, and more. Its debit card has an AutoSave Program where your transactions are rounded and automatically moved to your savings accounts. It also offers two-day early pay where you have access to your direct deposit. The bank also has launched a national OneTransaction podcast to make financial literacy a core value in the Black community.

Our pick for: Innovative digital banking tools

Why we think this is the best for innovative digital banking tools: OneUnited Bank is one of the nation's largest Black-owned banks. It offers unique digital banking tools, such as AI-powered personalized insights to help you manage your money, reduce your financial stress, and build wealth.

OneUnited Bank's WiseOne™ insights help you control your spending, and OneUnited Bank offers financial wellness resources and online education to help people build generational wealth. This bank also has a wide range of checking accounts, savings accounts, money market accounts, and CDs.

What to consider before opening an account: OneUnited Bank does not have competitive savings rates. If you want to earn the highest yield on your savings, this bank does not measure up with the best savings accounts and CDs. And although this bank has a wide range of account types, the sheer variety could be a bit complex and confusing -- and some accounts require a minimum balance to avoid a monthly fee.

Ratings Methodology

Rates as of Oct 09, 2024

Liberty Bank Personal Checking

Member FDIC.

Rating image, 3.00 out of 5 stars.

3.00/5

Rating image, 3.00 out of 5 stars.

3.00/5

APY

N/A

Min. To Earn APY

N/A

Pros/Cons

One of the largest African American-operated FDIC banks in the United States
24/7 customer support line
Unlimited check writing

Locations in only nine states and a small ATM network
Two withdrawals max per month for savings account
High monthly service fees
Additional fee for online bill pay

Bottom Line

Liberty Bank is a Black-owned financial institution with its headquarters in Louisiana, and in the past 20 years expanded into eight additional states. Liberty offers services for individuals, businesses, and institutional clients, delivering financial products and services to diverse markets with a focus on disadvantaged minority communities who have traditionally been underserved. It has high service fees for its accounts if you don’t meet the daily minimum, but it offers unlimited check writing.

Our pick for: Branch access

Why we think this is the best for branch access: Liberty Bank and Trust Company was founded in New Orleans in 1972. Today, Liberty Bank has branches in 11 states and more than $1 billion of assets, making it one of America's largest Black-owned banks. Unlike the Liberty Bank Personal Checking account, the Liberty Bank Premium Checking account earns 0.15% APY when you maintain an average daily balance of $1,000 or more.

What to consider before opening an account: You must maintain a minimum average daily balance of $1,000 to earn interest with a Liberty Bank Premium Checking account. If the balance in your account falls below $1,000 you'll owe a $10 service fee ($12.50 if you receive statements via mail). The first 20 debit transactions on a Premium Checking account are free, with a $0.25 charge per additional transaction.

Ratings Methodology

Rates as of Oct 09, 2024

Industrial Bank Kasasa Cash® Checking

Member FDIC.

Rating image, 3.50 out of 5 stars.

3.50/5

Rating image, 3.50 out of 5 stars.

3.50/5

APY

1.47%

Min. To Earn APY

N/A

Pros/Cons

No monthly fees
Free access to 50,000 ATMs
ATM reimbursements

$35 overdraft fee
Required debit card purchases
APY cap

Bottom Line

This bank offers some nice perks, but the user has to earn them. It requires debit card purchases, online banking, and electronic statements. The ATM reimbursement is also capped at $25 per month. You also can't earn the APY on anything more than $15,000. This account can certainly fill a need, but there are better options out there.

Our pick for: Rewards checking accounts

Why we think this is the best for rewards checking accounts: Industrial Bank was founded in Washington, D.C., in 1934. It offers two unique rewards checking accounts. The Industrial Bank Kasasa Cash® Checking account pays 1.47% APY on balances up to $15,000 if all requirements are met. The Kasasa Cash Back® checking account pays 3% cash back rewards on the first $250 of debit card spending per month if you meet qualifications.

What to consider before opening an account: To earn the 1.47% APY on an Industrial Bank Kasasa Cash® Checking account or the 3% cash back rewards for a Kasasa Cash Back® checking account, you must enroll and log into online banking, sign up for electronic statements, and make at least 12 debit card transactions per month. Industrial Bank rewards checking accounts can be paired with a Kasasa Saver® savings account for extra savings growth.

Ratings Methodology

Rates as of Oct 09, 2024

GN Bank Personal Checking

Member FDIC.

Rating image, 3.50 out of 5 stars.

3.50/5

Rating image, 3.50 out of 5 stars.

3.50/5

APY

N/A

Min. To Earn APY

N/A

Our pick for: Free checking accounts

Why we think this is the best for free checking accounts: GN Bank was founded in 1934 to provide banking services for the African American community of the South Side of Chicago that was often underserved by the mainstream financial system. GN Bank offers several options for "free" checking accounts with no monthly account maintenance fees -- or that make it easy to waive the maintenance fees. GN Bank's personal checking accounts require a $100 minimum balance (or less) to open.

What to consider before opening an account: There's no monthly maintenance fee for Advanced Student Checking and for Absolute Free Checking. To avoid the $7 monthly fee for Renaissance Checking, you only need a $10 daily balance. Retail Checking requires a $100 daily balance to avoid the $15 fee. Keep in mind that even if your checking account is "free," GN Bank charges some other fees like overdraft fees.

Ratings Methodology

Rates as of Oct 09, 2024

Citizens Savings Bank Foundation Checking

Member FDIC.

Rating image, 3.50 out of 5 stars.

3.50/5

Rating image, 3.50 out of 5 stars.

3.50/5

APY

N/A

Min. To Earn APY

N/A

Our pick for: Variety of checking and savings accounts

Why we think this is the best for a variety of checking and savings accounts: Founded in 1904 as the first minority-owned bank in Tennessee, Citizens Savings Bank has branches in Nashville and Memphis, with over $175 million of assets. As a community development financial institution (CDFI), Citizens Savings Bank has a special focus on helping people afford to buy homes. It also offers a wide range of specialized checking and savings accounts, like Legacy Interest Checking and Holiday Club Savings.

What to consider before opening an account: Citizens Savings Bank doesn't list account APYs on its website; call the bank for current rates. This bank refunds its customers' ATM surcharge fees, up to four fees per month, not to exceed $25 per month.

Although many other banks have stopped charging overdraft fees, Citizens Savings Bank still charges these fees -- $35 per occurrence of overdraft or returned item. These fees can be waived if the account is overdrawn by $10 or less.

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
Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC. 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.	4.10% Rate info Min. to earn: $0	N/A	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Open Account for SoFi Checking and Savings On SoFi's Secure Website. Member FDIC. 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.	up to 4.30%² Rate info Min. to earn: $0	New customers can earn up to a $300 bonus with qualifying direct deposits!¹	Open Account for SoFi Checking and Savings On SoFi's Secure Website.
Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC. 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.	4.10% Rate info Min. to earn: $0	N/A	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.

Why Black-owned banks are important

Black families have been in this country for more than 400 years. And yet, Black people hold a fraction of the wealth held by white families. According to the Institute of Policy Studies, 37% of Black families in the U.S. have zero or negative wealth, meaning their debts are equal to or greater than their assets. The same is true of 15.5% of white families.

While we all know of wealthy Black celebrities, athletes, and business owners, financial success has been tough to achieve for the majority of Black Americans. And it can easily be traced back to a culture that finds ways to prevent Black families from building wealth.

For example, if a society can find subtle ways to deny housing loans, it can steer Black people toward certain areas of town. And if those areas have poorly performing schools, it's harder for Black children to get the education they need to succeed in a competitive workplace. It's a systemic cycle designed to keep people in poverty and unable to take their rightful place at the table.

An uphill climb

If you've ever bounced a check or been late with a payment, you know how easy it is to make a mistake. And if there's a flag next to your name in ChexSystems or some other check verification service, you may have trouble opening a bank account the next time you move.

For years, Black people have been barred from opening bank accounts because they had a negative experience in the past that shows up on ChexSystems. It could be anything from overdrafts to suspected fraud or identity theft. This has prevented untold numbers of Black people from banking with a traditional bank or credit union.

What happens to a Black American who can't open a bank account?

Here are a few disadvantages of not being able to access banking services:

You might waste a load of money at check-cashing stores.
You may have to use prepaid cards with expensive fees.
You might have to borrow money from payday lenders with predatory interest rates frequently exceeding 400%.

For some seeking a financial institution, a Black-owned bank is necessary. They want to know that the people who run the bank understand what it's like to live in Black America, to have trouble qualifying for a credit card, or to get ahead enough to build a savings account balance. They want to walk into a branch location and know they are welcome there and have access to second-chance banking and overdraft protection. For some, only a minority depository institution can provide what they're looking for.

A brief history of racism in banking

To illustrate the history of racism in banking, here is an overview of the rise and fall of the Freedman's Savings Bank, according to information from the Office of the Comptroller of the Currency.

In 1865, the Civil War ended and the 13th Amendment abolished slavery. Around that time, Congress acknowledged that Black people would need education, financial services, and capital.

The Freedman's Savings Bank was established in March 1865 to provide Black people with the same types of banking services formerly reserved for white men. But, as explained by author Shawn Rochester, Freedman's Savings Bank may have been marketed as a Black bank, but it was run by white managers. They controlled around $3 million from 61,000 Black depositors, and they made risky investments with those funds.

The bank appeared to grow quickly, but not quickly enough to pay for overexpansion. Plus, a shaky postwar economy led to a financial crisis known as the Panic of 1873, which further reduced the bank's investment portfolio.

By 1874, managers had wiped out all deposits, and Freedman's Bank collapsed. While the government promised to return some of the lost funds to customers, most received nothing -- or pennies on the dollar. This is just one example of why Black Americans have lost faith in the banking system. And many are unwilling to trust their hard-earned money to an institution that does not look out for them.

Services Black-owned banks offer

If you're interested in helping the Black community (no matter your skin color), one way you can do it is by becoming a customer.

Here are just a few of the services Black-owned banks offer:

Serve as a community development financial institution
Provide loans to small businesses
Help home buyers purchase their first home

How to choose the right Black-owned bank for you

To find the right bank for you, take the following steps:

To narrow your search, decide how you want to bank. Do you want a bank that's close to home or would you prefer to do your banking online?
Determine which financial services are important to you. You may want a no-fee bank -- or one that pays competitive rates on savings accounts, money market accounts, or certificates of deposit.
Request a copy of your top banks' terms and conditions. Read these documents carefully so you know what you're agreeing to and can pick the right option for you.

Some Black-owned banks have branches, while others allow you to bank entirely online. That means if the bank you're interested in joining is based in North Carolina but you live in another state,you can still become a bank customer. One of the advantages of having online access to your bank is that you can take it with you. You don't have to worry about there being a branch wherever you go.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how The Motley Fool Ascent rates bank accounts.

Banks we monitor

Here are the 100+ financial institutions we've evaluated in our research:

Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO Bank, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Jenius Bank, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, My Banking Direct, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, NexBank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi®, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.

FAQs

OneUnited is the largest Black-owned bank in the U.S. It is also FDIC insured and initially launched in 1968.
Call and ask. It's as simple as that. They'll tell you who owns the bank. You can also check bank websites to see who runs the company.

This device is too small

Black-Owned Banks and Credit Unions 2024

Best Black-owned banks

Compare savings rates

Why Black-owned banks are important

An uphill climb

What happens to a Black American who can't open a bank account?

A brief history of racism in banking

Services Black-owned banks offer

How to choose the right Black-owned bank for you

Our bank and credit union methodology

Banks we monitor

FAQs