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Best Black-Owned Banks of March 2024

Review Updated
Dana George
By: Dana George

Our Banking Expert

Ashley Maready
Check IconFact Checked Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield

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. Finally, we'll cover how everyone can help, regardless of skin tone.

Our Methodology: How we decide which Black-owned banks to list on this page

How did we decide which Black-owned banks to recommend on this page, you ask? Here's the thing: We at The Ascent only recommend Black-owned banks we'd pass along to our brothers, sisters, and mothers. Big banks can't pay to play ball, and we'd be bummed if they did -- we recommend these Black-owned banks to family members who ask. (And sometimes when they don't. We wouldn't wish crummy banks upon anyone -- no, not even that guy.)

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Ratings Methodology
Rates as of Mar 28, 2024

OneUnited Bank Black Wall Street Checking

Member FDIC.
Rating image, 3.490 out of 5 stars.
3.490/5 Circle with letter I in it. 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
Rating image, 3.490 out of 5 stars.
3.490/5 Circle with letter I in it. 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
APY
N/A
Min. To Earn APY
N/A
  • 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

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.

Carver Federal Savings Bank Community Free Checking

Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
APY
N/A
Min. To Earn APY
$0
  • No monthly account fee
  • Low deposit requirement
  • Visa debit card
  • Community reinvestment
  • Low interest rates
  • Very small footprint

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.

Liberty Bank Personal Checking

Member FDIC.
Rating image, 3.00 out of 5 stars.
3.00/5 Circle with letter I in it. 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
Rating image, 3.00 out of 5 stars.
3.00/5 Circle with letter I in it. 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
APY
N/A
Min. To Earn APY
N/A
  • 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

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.

Industrial Bank Kasasa Cash Account

Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
APY
1.47% Rate info Circle with letter I in it. You only get the refunds and rate if you meet three requirements: Make at least 12 debit card purchases monthly, log into online banking each month and receive electronic statements. 1.47% APY on balances up to $15,000.
Min. To Earn APY
N/A

No monthly fees

Free access to 50,000 ATMs

ATM reimbursments

$35 overdraft fee

Required debit card purchases

APY cap

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.

GN Bank Personal Checking

Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
APY
N/A
Min. To Earn APY
N/A

Citizens Savings Bank Foundation Checking

Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. 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
APY
N/A
Min. To Earn APY
N/A

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.

READ MORE: What Is ChexSystems?

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.

READ MORE: Beginner's Guide to Banking

How to choose the right Black-owned bank for you

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

If you're not Black, it's not a problem. Black-owned banks do not discriminate.

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

  1. 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?
  2. 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.
  3. 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.

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.

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Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. 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
N/A
4.35%
Rate info Circle with letter I in it. 4.35% annual percentage yield as of March 28, 2024
Min. to earn: $1
N/A
5.05% APY for balances of $5,000 or more
Rate info Circle with letter I in it. 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

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.

Our Banking Experts