Choosing a New Bank? Never Overlook These Features of the Safest Banks
KEY POINTS
- Never do business with a bank that isn't FDIC insured.
- Target a bank with strong technical features for greater security, like EMV chips in debit cards.
- Customer service is very important, so pick a bank that offers human help any time of day or night.
Ready to find a new bank account to make managing your money simpler, cheaper, and perhaps more fun? I recommend adding "safer" to that list. Most of us aren't rich, and the prospect of losing our money to scammers or a bank failure is frankly terrifying.
Here's a look at some of the top features of the safest banks -- look for these to ensure your money is secure and you can sleep better at night.
FDIC insurance
Right off the bat, you should never do business with any bank that isn't a member of the FDIC. (Luckily, it's easy to find out if a bank is -- you'll see it on the bank's website, or can use the FDIC's BankFind Suite tool.)
The Federal Deposit Insurance Corporation was created by the federal government in response to the Great Depression–era bank failures that saw ordinary Americans lose their life savings.
Our Picks for the Best High-Yield Savings Accounts of 2024
Capital One 360 Performance Savings
![]() APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
|
Min. to earn
$0
|
American Express® High Yield Savings
![]() APY
4.25%
Rate info
4.25% annual percentage yield as of August 29, 2024
Min. to earn
$1
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
APY
4.25%
Rate info
4.25% annual percentage yield as of August 29, 2024
|
Min. to earn
$1
|
UFB Portfolio Savings Account
![]() APY
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn
$0
Open Account for UFB Portfolio Savings Account
On UFB's Secure Website. |
APY
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
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Min. to earn
$0
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The standard FDIC coverage these days is $250,000 -- up to $250,000 per depositor for each account ownership category is safe (so if you co-own the account, you're protected for up to $500,000). The money will be returned to you if your bank folds.
That's a lot more money than I ever expect to have in the bank, and I'm willing to bet the same is true for you, so you can sleep easier at night knowing your cash is safe.
Strong technical security features
There's a slew of security features that you'll find at the safest banks. If you're looking for a new home for your money, it's worth targeting these in particular:
- Two-factor authentication: You should be able to opt in for extra verification when you log into online banking or your mobile app. You might need to enter your username and password, then enter a code that's emailed or texted to you.
- Debit card locking: If you lose track of your debit card, you should be able to lock it quickly via online banking or your mobile app. This will keep your money safe from thieves.
- Debit cards with EMV chips: EMV chips are becoming more and more common, and ideally, your bank's debit cards should have them. They are safer than the traditional magnetic stripe, as they generate a unique code for every transaction -- making it harder for a scammer to steal your card information.
- Alerts of all kinds: You should have the option to activate app notifications, text messages, or emails when there's suspicious activity in your bank account, money is directly deposited, or when your balance drops below a certain level. You should know what's happening with your account at all times, and the best banks can help.
Readily available customer service
Speaking of staying on top of bank account activity, you should look for a bank that offers strong customer service that's available 24/7. If you discover suspicious charges on your debit card or a chunk of your money has been mysteriously withdrawn from your checking account, you need to be able to get a human to help you ASAP.
Online banks offer particularly robust customer service -- my own online bank even has a widget on its login page that shows you how long you can expect to wait if you call. But you can find great customer service from the big banks, too.
It's a good idea to read customer reviews of any bank you're considering joining. Keep in mind that people like to complain on the internet, and especially about big businesses like banks. But if you see the same problem being mentioned in multiple reviews, it's likely an issue for that bank.
If you're choosing between different banks, you're probably considering features like APY, account types, and perhaps branch locations. But it's a good idea to add safety to your list, too. The sleep (and money) you save will make you glad you did.
Our Research Expert
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.
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