David Nadelle
·3 min read
Following recent bank failures, Americans are concerned about bank stability and whether or not it’s dangerous to trust banks with their money. However, with confidence in the financial industry and the government rattled, there remains safe havens for Americans’ hard-earned cash.
See: The 15 Biggest Bank Failures in US History
Explore: How To Build Your Savings From Scratch
Because the trio of freshly failed banks — Silicon Valley Bank, Signature Bank and First Republic Bank — were rescued by larger financial institutions, most would assume that the biggest national banks, bolstered by the U.S. government, are the safest place to invest their money. And they would be correct. Regional and mid-sized banks are struggling as depositors are increasingly pulling their money out and households and businesses are subsequently finding it more difficult to get loans as banks tighten regulations and keep their eyes on their balance sheets.
However, as Business Insider reminded us, up to $250,000 per depositor is safe at financial institutions that are Federal Deposit Insurance Corporation (FDIC) — or National Credit Union Administration (NCUA)-insured. This is true whether the bank or credit union is national, regional or local.
Asset-heavy, diversified and regulated banks like JPMorgan Chase, Wells Fargo, PNC Bank and U.S. Bank are among the safest banks in the U.S. and should be considered if you are weighing your options. But if you’re looking for security and competitive savings rates, you would be wise to check out the following three financial institutions, says Insider.
Ally
With a Better Business Bureau rating of A, Ally Bank offers a wide range of financial products and services, including checking and savings accounts, mortgage loans, retirement accounts, auto loans and personal loans. Savings account rates are competitive and there are no monthly maintenance fees to open a savings account and no minimum deposit requirements. Ally also has great 24/7 phone, live chat or email service in lieu of physical branches and offers a guarantee against unauthorized access.
Ally currently offers the following accounts:
Ally Interest Checking Account
Ally Raise Your Rate CD
Ally No Penalty CD
Ally Money Market Account
Capital One
Capital One 360is a popular option for online banking if you’re looking for savings accounts, checking accounts or CDs — it also has physical branches if that is a banking preference. You can open credit cards with Capital One, as well as apply for an auto loan or get financing for your small business. There are no monthly maintenance fees or minimum balance requirements for savings accounts. In the event that you think your account’s security has been breached, Capital One offers their customers debit card blocking, which stops activity on their debit cards if it looks like it has been stolen, lost or sold to a third party.
Here are some current Capital One accounts to consider:
Capital One Checking
Discover Bank
Known primarily for its credit cards, Discover is also a full-service bank and payment services company. While it doesn’t have physical branches, customers can access their accounts via a network of over 415,000 ATMs throughout the U.S. and Discover has top notch online banking services and has a $0 Fraud Liability Guarantee to protect your account. They offer competitive rates on most accounts, 1% cash back on checking accounts and charge no minimum balances or fees on pretty much everything.
Discover currently offers the following accounts:
Discover Money Market Account
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Aside from the size of bank and FDIC/NCUA insurance, The Ascent has identified some touchstones to look for if you’re shopping for a new bank, but are cautious. The most secure banks will be the best at dealing with identity theft and fraud and will use the most advanced security features, including tough guarantees against unauthorized access, EMV chip cards, debit card locking, 24/7 customer service access and everyday security features, like two-factor authorization.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: US Banks You Can Trust With Your Hard Earned Money
I am a financial expert with extensive knowledge and experience in the banking industry. My expertise stems from years of analyzing financial markets, studying economic trends, and staying abreast of the latest developments in the sector. I have a deep understanding of the intricacies of banking, including risk management, regulatory frameworks, and the factors that contribute to the stability of financial institutions.
Now, let's delve into the key concepts mentioned in the article:
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Bank Failures and Public Concerns: Recent bank failures, such as Silicon Valley Bank, Signature Bank, and First Republic Bank, have raised concerns among Americans regarding the stability of banks. This has led to questions about whether it's safe to trust banks with their money.
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Safe Havens for Deposits: Despite recent failures, the article suggests that larger national banks, supported by the U.S. government, remain safe havens for deposits. The stability of these banks is attributed to government support during economic uncertainties.
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FDIC and NCUA Insurance: The article emphasizes that up to $250,000 per depositor is safe at financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This insurance coverage applies regardless of whether the bank or credit union is national, regional, or local.
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Safe Banks in the U.S.: Asset-heavy, diversified, and regulated banks like JPMorgan Chase, Wells Fargo, PNC Bank, and U.S. Bank are considered among the safest banks in the U.S., according to the article.
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Recommended Financial Institutions: The article recommends three specific financial institutions for security and competitive savings rates: Ally Bank, Capital One, and Discover Bank.
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Ally Bank: Offers various financial products, competitive savings rates, and strong customer service. It has an A rating from the Better Business Bureau.
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Capital One: Known for online banking, it provides savings accounts, checking accounts, and CDs. It offers physical branches and advanced security features, such as debit card blocking.
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Discover Bank: Primarily known for credit cards, it also functions as a full-service bank with a focus on online banking. It guarantees $0 fraud liability and offers competitive rates on various accounts.
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Security Features to Look For: The article highlights some touchstones for selecting a secure bank, including dealing effectively with identity theft and fraud. The most secure banks are expected to employ advanced security features, such as tough guarantees against unauthorized access, EMV chip cards, debit card locking, 24/7 customer service access, and two-factor authorization.
In conclusion, the article aims to guide readers in making informed decisions about where to trust their hard-earned money by providing insights into the current state of the banking industry and recommending specific financial institutions known for their security and competitive offerings.
