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.
- Our team of experts assessed 100+ banking institutions
- We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
- Our bank ratings are never influenced by our advertising partners
- We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased
Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
Best Black-owned banks
- Carver Federal Savings Bank
- OneUnited Bank
- Liberty Bank
- Industrial Bank
- GN Bank
- Citizens Savings Bank
Ratings Methodology
Rates asof Sep 13, 2024
Carver Federal Savings Bank Community Free Checking
Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5Our 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
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Rating image, 3.50 out of 5 stars.
3.50/5Our 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.
OneUnited Bank Black Wall Street Checking
Member FDIC.
Rating image, 3.490 out of 5 stars.
3.490/5Our 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.
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= Excellent
= Good
= Fair
= Poor
Rating image, 3.490 out of 5 stars.
3.490/5Our 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.
Liberty Bank Personal Checking
Member FDIC.
Rating image, 3.00 out of 5 stars.
3.00/5Our 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.
3.00/5Our 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.
3.50/5Our 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.
3.50/5Our 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 infoYou 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 reimbursem*nt 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.
3.50/5Our 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.
3.50/5Our 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.
3.50/5Our 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.
3.50/5Our 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
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
Account | APY | Promotion | Next Steps |
---|---|---|---|
Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | up to 4.50%² Rate infoYou 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 | New customers can earn up to a $300 bonus with qualifying direct deposits!¹ | Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. |
Open Account for CIT Platinum Savings OnCIT'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | 4.85% APY for balances of $5,000 or more Rate info4.85% APY for balances of $5,000 or more; otherwise, 0.25% APYMin. to earn: $100 to open account, $5,000 for max APY | N/A | Open Account for CIT Platinum Savings OnCIT'sSecure Website. |
Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | 4.25% Rate infoSee 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 | N/A | Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. |
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.
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.
Services Black-owned banks offer
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
How to choose the right Black-owned bank for you
To find the right bank for you, take the following steps:
- 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?
- 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.
- 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.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Banks we monitor
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO Bank, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Jenius Bank, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, My Banking Direct, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, NexBank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi®, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
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.