The 5 Best Banks of 2023

The bank you choose to work with can play an important role in your financial life. Finding the right financial institution could make it easier to manage your money and grow your savings at a faster rate. 

If you’re in the market for a new bank account, you’ll find that there are many options available—perhaps too many. The sheer number of choices can start to feel overwhelming. So we’re here to help. 

We researched a wide range of financial institutions across the United States: online banks, large national banks, credit unions, and more. Read on to discover our picks for the best banks of 2023. 

Our Top Picks for the 5 Best Banks of 2023

• Best Overall: Ally Bank
• Best for Competitive Interest Rates: CIT Bank
• Best for New Account Bonuses: Chase Bank
• Best for Savings Interest Rates: UFB Direct
• Best Credit Union: PenFed Credit Union

 

Best Banks Reviews

Ally Bank is an online bank that offers many of the same products and services that traditional financial institutions provide. In addition to the bank’s FDIC insured checking and savings accounts, Ally Bank also offers money market accounts, certificates of deposit, investing and retirement accounts, and various financing services (e.g., auto loans, mortgages, and personal loans). 

Because Ally Bank doesn’t have the overhead of maintaining physical branches, it can pass along that savings to its customers. The online bank charges low fees, pays competitive annual percentage yields (APYs) on its deposit accounts, and doesn’t charge account maintenance fees or overdraft fees. 

Ally Bank also provides robust money management tools to its customers. The bank’s Online Savings Account features savings buckets to help categorize your savings goals (think digital cash envelopes) and automated savings boosters you can use as well. Automated bill pay capabilities can also help you manage recurring bills through the Ally Interest Checking Account, all while avoiding late fees and saving time in the process. 

Should You Open an Account? 

Ally Bank may work well if you’re someone who values good rates on deposit accounts, minimal fees, and user-friendly banking tools. (Note: you might find higher APYs at other financial institutions.) People who prefer to bank in person or make frequent cash deposits, however, may prefer a different financial institution.  

CIT Bank stands out among the competition for offering competitive interest rates on both savings and checking accounts. The APY on CIT Bank’s Savings Connect account is 3.25% at the time of writing—15 times higher than the average rate for savings accounts according to the Federal Deposit Insurance Corporation (FDIC). 

You can also earn up to 0.25% APY on your eChecking account balance with the bank (0.10% on balances under $25,000). And while there are financial institutions that offer higher interest, it’s not as easy to find banks that offer above-average interest rates on both types of deposit accounts. The bank also stands out for charging minimal fees—and no monthly service fees or overdraft fees at all. 

Customers of CIT Bank can enjoy a wide variety of financial products. In addition to the checking and savings accounts mentioned, the bank offers CDs, money market accounts, mortgages, and business financing options.  

It’s worth noting that CIT Bank merged with First Citizens Bank in early 2022. Yet, at least initially, CIT Bank will continue to operate as an online-only bank. Therefore, cash deposits and in-person banking are not an option at this time. 

Should You Open an Account? 

If you want an online bank that offers above-average interest rates on both checking and savings accounts along with minimal fees, CIT Bank could be a good option. Fans of traditional, in-person banking may prefer a different financial institution. 

JPMorgan Chase Bank, one of the largest banks in the United States, is a solid option for people who want a chance to earn a bonus when they open a new bank account. At present, Chase has several promotions available for eligible customers, including a $200 bonus offer for new Chase Total Checking accounts and a $300 bonus offer for new Chase Business Complete accounts. 

If you open a Chase checking account to earn a sign-up bonus, be sure to pay attention to the fine print. To qualify for the $200 Chase Total Checking bonus, for example, you must use a special coupon to enroll and set up a direct deposit within 90 days of opening the account. 

Banking with Chase can be convenient for people who want the option of visiting physical branches in a variety of locations. However, the bank is known for offering very low interest rates on its savings accounts, checking accounts, and CDs. Chase also charges high fees for some overdrafts ($34) and monthly fees ($12 for Chase Total Checking). But there are often ways to qualify for fee waivers. 

People who prefer to keep all of their financial accounts under one roof may enjoy working with Chase. As big banks are often known to do, Chase offers a variety of financial services and products, from various deposit accounts to different financing options (e.g., credit cards, mortgages, lines of credit, etc.). 

Should You Open an Account? 

Banking with Chase could suit people who value access to a wide network of ATMs and physical branches. The chance to earn a generous sign-up bonus can certainly be a plus as well. Yet people who want their bank to pay them a higher interest rate on their savings or checking account balance may want to search elsewhere for a bank that can better meet their needs.

UFB Direct, a division of Axos Bank, offers a savings account with a higher-than-average APY (even for high-yield accounts). At the time of writing, the APY on the UFB High Rate Savings account is 3.83%—nearly 16 times the national average (FDIC data, November 2022). 

The online bank offers an FDIC-insured money market account with a high APY as well. The UFB High Rate Money Market account comes with ATM access, a debit card, and check-writing privileges. However, a $10 monthly maintenance fee does apply to the account unless you maintain a balance of at least $5,000. 

UFB Direct doesn’t offer checking accounts or CDs. Aside from the online bank’s high-yield savings account and money market account options, the only other financial products available are mortgages. 

Should You Open an Account? 

If your primary goal is to earn the highest interest possible on your savings (without having to jump through a bunch of hoops), consider a savings account or money market account from UFB Direct. You can link the account to the checking account you have established with another bank to make transferring funds back and forth as easy as possible. However, if it’s important to keep all of your accounts together, it may be best to continue researching available bank options. 

PenFed Credit Union gets the nod for the best credit union thanks to attractive interest rates and membership that’s widely available to consumers throughout the U.S. Once limited to military personnel and their families, the credit union now has an open national membership charter that allows anyone to join. The only requirement you need to satisfy to become a member of PenFed is to fill out an application and deposit at least $5 into a savings account. 

The credit union offers attractive rates on many of its savings accounts, checking accounts, and savings certificates (similar to CDs)—not the highest APYs available, but higher than the national average. (Note: Be sure to read the fine print to make sure you qualify to earn APY on each of your accounts.) Also, depending on your creditworthiness and other factors, you may be eligible for attractive interest rates on various financing products through the credit union such as mortgages, auto loans, student loans, and credit cards. 

If you join PenFed, be aware that you may face steep fees and penalties in some situations. The $10 monthly checking account fee is avoidable if you maintain a $500 balance or have at least $500 in direct deposits each month. Yet the credit union’s insufficent funds fee is a sizable $30—a fee that you could potentially incur several times in a single day. Additionally, the early withdrawal penalties on savings certificates (like the money market certificate) can be costly as well. 

Should You Open an Account? 

Becoming a member of a credit union can offer numerous attractive benefits. If you’re interested in joining a credit union and you don’t qualify for a local solution that interests you, PenFed is one of the easiest nationwide options to join. 

Banks Guide

Below you’ll find information about the key differences between traditional and online banks. We’ve also provided helpful tips on how to choose the best FDIC insured bank or credit union for your financial needs. 

Brick-and-mortar vs. online banks

One of the first decisions you’ll need to make when you’re shopping for a new bank is whether you want to work with a traditional financial institution or an online bank. Traditional banks and credit unions have physical branches you can visit in person. The ability to drive to your bank to do business may offer numerous advantages:

Traditional bank benefits

• Face-to-face customer service
• Cash deposit options
• Simple cash withdrawal options
• Greater range of products and services
• Large ATM network

Online banks allow customers to conduct business solely from their computers, mobile apps, and phones. And while many traditional banks also offer digital banking services of their own, in many cases online banks also offer advantages that set them apart from traditional financial institutions. 

Online bank benefits

• Lower fees 
• Higher APYs on deposit accounts
• Superior mobile apps
• Better online experiences

Of course, the benefits above—both for traditional banks and online banks—are generalizations. Many of the best online banks do offer higher interest rates on savings accounts than traditional in-person banks. Likewise, traditional banks and credit unions often have larger ATM networks than online banks. But these rules of thumb might not apply in every situation. 

How to choose the best bank

When you’re searching for a new bank, many factors could influence your decision. For some people, the interest rates a bank offers may matter most. Others may care more about whether a bank charges monthly fees or waives ATM fees. And some banking customers may place a high value on the ability to visit a brick-and-mortar branch in their local area. 

There’s no such thing as a perfect bank. But you might be able to find a bank that’s the best fit for you. Below are several key details to consider when you’re trying to choose the right banking option for your financial needs. 

Products and services

The bank you choose to work with should offer products and services that fit your lifestyle. If you’re looking for a checking account, high yield savings account, money market account, or CD options, focus on finding financial institutions that offer those types of deposit accounts. Likewise, if you prefer financial institutions that accept in-person cash deposits, offer cashier’s checks, notary services, and more, you should search for traditional banks that can meet your needs. 

Interest rates

Many consumers place a high priority on the interest rates that a bank pays out to its customers. After all, the higher the APY a bank offers you, the more money you stand to earn on your savings. 

If earning the highest interest possible is your biggest concern, you should shop around for banks that offer the highest APYs on various types of deposit accounts (e.g., checking accounts, savings accounts, high yield savings accounts, CDs, etc.). Finding the banks that offer the best interest rates on the types of accounts you wish to open should help make your financial decision much easier. 

Fees

According to a 2022 American Bankers Association survey, most consumers (62%) believe it’s either somewhat or very reasonable for their primary bank to charge a monthly account maintenance fee. Yet another 31% of consumers felt that a monthly fee was not reasonable at all. 

If you hold the opinion that banks shouldn’t charge monthly maintenance fees then finding a financial institution that offers free checking or savings accounts may be a priority for you. The good news is that there are a number of banks and credit unions to choose from if bank fees are something you prefer to avoid. 

Customer service

Another detail to consider when choosing the best bank for you is the financial institution’s reputation. No bank will have a perfect track record where customer service is concerned. Yet if you check online reviews and notice an alarming number of complaints, pending or filed government actions, or other red flags, you might be better off searching for a different bank or credit union. Pro tip: looking for patterns of complaints in consumer reviews rather than their sheet number may give you better insight into the bank’s customer service quality.

Other benefits

Some banks and credit unions may offer other benefits that could make your life easier. Here are a few other features and perks you might want to search for before you settle on your final choice for a new financial institution. 

• Cash back rewards
• New account bonuses
• Access to financing
• Bill pay
• Budgeting tools

How we found the best banks

We chose the best banks of 2023 by conducting a detailed comparison of the financial products and services of numerous financial institutions throughout the U.S. We considered many factors in our analysis, including: 

• Fees: Banks and credit unions that charge no monthly fees (or low fees) received a higher rating due to their potential to save consumers money. Free ATM access was also a plus. 
• Interest Rates: When a financial institution offers a higher interest rate (APY) on the cash you store in your deposit accounts, it can help your savings grow at a faster rate. 
• Reputation: It’s important to work with a trustworthy financial institution. While no bank or credit union has perfect reviews online, you should look out for an unusual number of complaints, government actions, or other red flags that could indicate potentially serious problems. 
• Benefits and Rewards: Some banks offer additional benefits and rewards to their customers. If you can match these perks with your lifestyle, you could potentially get a lot of value out of such offers. 

Summary of the 5 best banks of 2023

• Best Overall: Ally Bank
• Best for Competitive Interest Rates: CIT Bank
• Best for New Account Bonuses: Chase Bank
• Best for Savings Interest Rates: UFB Direct
• Best Credit Union: PenFed Credit Union