The Best Banks of 2023

There are a large number of banking institutions across the country that customers can choose from to help manage their money. In fact, there are nearly 5,000 FDIC-insured banks within the U.S. that provide a range of services, from checking and savings accounts to loans and lines of credit and convenient options such as online and mobile banking. But with so many options comes the task of determining the best one to work with for your needs.

To determine the best banks in the U.S., GOBankingRates ranked 18 options based on a number of factors, including:

• Total assets
• Minimum deposit needed to open a checking or savings account
• Checking and savings account fees
• Minimum balances needed to maintain the account
• Savings account APY
• Customer service
• Options for loans, credit cards and investment services
• Mobile app ratings

GOBankingRates’ Best Banks of 2023

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What To Consider When Choosing the Best Bank

When choosing a bank, there are several factors you should look for — including the products and services it offers, its fees and interest rates, and, if it’s a brick-and-mortar institution, whether there are physical branches near you. The best bank for you will also depend upon the type of account you wish to open. You can also open different accounts at different banks to take advantage of the best rates and offers for specific accounts.

Different Types of Banks

In this day and age, there are more banking options than ever before, each offering different services and accessibility that are tailored toward individuals as well as businesses. Here are some of the main types available:

National Banks – The big banks that have a national presence and thousands of physical locations, with recognizable names like Chase, Wells Fargo and Bank of America, among others.

Online Banks – Unlike national banks that have plenty of brick-and-mortar locations, online banks work primarily in the digital space including website portals and mobile apps.

Retail Banks – Financial institutions that cater to retail consumers, aka regular people, rather than corporations and large businesses. They offer personal banking options like checking and savings accounts as well as loans.

Neobanks – Non-traditional banking options that are virtual and rely on fintech solutions to provide money management without in-person customer support. They generally partner with more established institutions to provide services.

Private Banks – A concierge-style service providing personalized counseling for wealth management and estate planning, and is usually reserved for high net worth individuals.

Standard Bank Services

Every bank operates independently with its own terms, rates and range of options for customers, however, there are a number of standard services that most will provide to help clients manage their money.

Savings Accounts – A low interest earning account that allows you to make regular deposits to help build up a financial reserve. Generally, these accounts are used to store money you don’t need to access regularly and want to allow to grow.

Checking Accounts – A type of bank account for active money transactions. Customers can deposit money either through paper checks or direct deposits and are able to use funds 24/7, including paying bills or making retail purchases, which are generally done with a linked debit card. Many banks allow you to link savings accounts to checking accounts for easy money transfers and protection from overdraft fees if your checking account runs low.

CDs – A certificate of deposit is a more specific type of savings product where you make a one-time deposit and determine a term that allows the money to vest (typically from three months to five years). Generally, you are not able to access the money and will incur a penalty for an early withdrawal. The tradeoff is that a CD offers a higher interest rate and more earning potential.

Money Market Account – This type of account combines the earning potential of a savings account with the convenience of a checking account in which the customer can write checks or use a linked debit card for purchases.

Loans – Banks can provide loans for large purchases with varying interest that will accrue over the course of the agreement. Whether it’s a 30-year mortgage or a five-year auto loan, there’s a large range of options. Banks may also be able to help finance student loans and business loans and help process home equity loans and lines of credit.

Credit Cards – In addition to loans, many banks offer personal credit cards with a revolving line of credit available for purchases that can be paid off over time. Bank-issued credit cards can also come with perks such as cash-back promotions, accruing travel miles and reward points but it’s important to read the fine print when it comes to APRs and any annual fees.

Retirement Accounts – Some banks also offer personal retirement plans such as 401(k) plans that can be helpful for those unable to contribute to an employer-matching retirement savings account, such as if the person is unemployed or a contract/freelance/side gig worker.

Bank Fees

All banks operate differently but many have fees that may be applied for maintaining accounts unless you meet certain requirements. For example, a savings account may require that you keep a minimum amount deposited at all times to avoid a fee and a checking account may dictate that you must have regular direct deposits made in order to not be charged. Many banks also apply overdraft fees, charging customers any time they overdraw a checking account where the available balance can’t cover the purchase being made.

Bank Interest Rates

Savings accounts and certificates of deposit opened with a bank will both accrue interest, though the amount will change based on the financial institution and the current average as dictated by the Federal Reserve. Savings accounts will have a lower interest rate than a CD but it’s best to shop around to find the most competitive offer.

ATMs and Online Banking Services

It used to be that you had to wait until a local branch of a bank was open to withdraw money or deposit checks. But with advanced technology, there are more convenient options nowadays. All major banks have ATMs (automated teller machines) that allow you to do most of your banking business at any time of the day without needing a teller to be present. Online banking portals and mobile apps also offer the same 24/7 banking opportunities where you can check balances, transfer funds, pay bills and deposit checks by taking a photo with your smartphone.

What You Need To Open a Bank Account

Once you’ve determined which financial institution you want to do your banking with, you’ll need a few items in order to open an account. That list includes a government-issued ID, your Social Security number and an initial deposit, whether for a savings or checking account. Most of the time you can open new accounts either in-person or online. Once established, you may also need to change your paycheck direct deposit and update any of your linked automatic bill pay agreements.

The Difference Between a Bank and Credit Union

There is another option for banking called a credit union. Unlike a traditional national bank which is a for-profit entity and is governed by shareholders, a credit union is a not-for-profit institution that works for its membership. Meaning, they’re generally smaller and community-based with more personalized services. There are a few factors in order to be considered eligible for membership in a credit union (usually determined by where you live, an employer you work for or a community you belong to such as the military). Because credit unions are smaller and not-for-profit, they typically offer better interest rates and lower fees than traditional banks. However, there usually aren’t as many branch locations and advanced technology like mobile apps that national banks offer.

How Your Money Is Protected in a Bank

National banks are insured by the Federal Deposit Insurance Corporation (FDIC) which protects up to $250,000 per person per institution. So for any event that may affect a financial institution’s health or viability, whether a natural disaster or default, a customer’s money is insured through this federally regulated mandate.

Sign-On Bank Bonuses

Banking is a competitive field and many major institutions will offer incentives to encourage new clients to work with them. Many provide sign-on bonuses when you open a new account that can top $150-$300 or more. It’s one more point to consider when deciding where to bring your business.

More Best Banks 2023

Best Checking Accounts of 2023

Best CD Accounts of 2023

Best Savings Accounts of 2023

Best Regional Banks of 2023

Best Credit Unions of 2023

Best Online Banks of 2023

Best Online Bank and Neobank Savings Accounts of 2023

Best Neobanks of 2023

Methodology

To determine the Best Banks of 2023, GOBankingRates looked at the following factors: (1) minimum deposit to open a checking account; (2) monthly checking fee ratio (minimum to avoid fees compared to the monthly fee itself); (3) minimum deposit to open a savings account; (4) savings APY; (5) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (7) the average mobile app rating between the Android and Apple stores. All factors were then scored and combined, with the lowest score being best. Factors (1) and (3) were weighted 0.5 times, factor (4) was weighed 2.5 times and factor (6) was weighted 1.5 times.