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7 best banks for seniors and retirees in September 2024: High interest, low fees
As a senior or a retiree, the best account for you is one that offers easy access to your money and pays competitive interest on your deposited funds, all while having low or zero monthly maintenance fees. Too good to be true? As a certified personal finance educator, I’ve used and recommended several online and brick-and-mortar banks that offer these benefits and more — including U.S. Bank, CIT Bank, SoFi and other banks we explore here.
Best for traditional banking: U.S. Bank
U.S. Bank is a brick-and-mortar bank with over 2,000 physical branches in these 27 states:
As someone who values face-to-face banking, I appreciate U.S. Bank’s extensive network. Plus, it offers a range of accounts tailored to seniors, including the U.S. Bank Smartly Checking account. While this account usually charges a $6.95 monthly maintenance fee, the fee is waived for seniors ages 65 and older. If you’re younger than 65, you can waive the fee by maintaining an average account balance of at least $1,500 or receiving monthly direct deposits of $1,000 or more.
To avoid additional fees if you accidentally overdraw on your balance. U.S. Bank will automatically pull money from a linked account for overdrawn withdrawals or payments of up to $50. If you overdraw your account by more than $50, you can avoid the overdraft fee by making a qualifying deposit before 11 p.m. ET on the same day you're charged the fee.
A valuable account to link to your U.S. Bank Smartly Checking is the U.S. Bank Elite Money Market Account, which pays out up to 4.75% APY on balances of $25,000 or more. Between these two accounts, you can enjoy high-yield savings, $0 monthly maintenance fees and in-person banking. However, unlike the Elite Money Market Account, U.S. Bank Standard Savings only earns 0.01% APY.
- Up to 4.75% APY on money market balances of $25,000 or more
- Checking account maintenance fee waived for seniors
- Physical branches in 27 states
- Extensive overdraft protection and overdraft fee forgiveness
- The Standard Savings account only earns 0.01% APY
Best for ATM refunds: CIT Bank
I’m always on the lookout for ways to make my money work harder, which is why CIT Bank caught my attention. Not to be confused with Citibank, CIT Bank is an online-only bank with no physical branches. But what it lacks in branch accessibility, it makes up for with high-yield savings.
CIT Bank offers one of the highest APY rates out there with its Platinum Savings account. You can earn 5.00% APY on balances of $5,000 or more, and CIT Platinum Savings charges no monthly maintenance fee — which means you get to keep all the interest you earn without ongoing fees eating into your earnings.
While CIT Bank doesn’t support physical branches, I rarely find myself needing one for anything more than ATM access. CIT makes up for that by offering up to $30 in monthly reimbursements when you open a CIT eChecking account. This means that you can use any ATM, whether it’s in or out of its network, and CIT eChecking reimburses any ATM operator fees you incur up to $30. The eChecking account also features a $0 monthly maintenance fee.
CIT Bank is a division of First Citizens Bank, one of the largest banks in the U.S., giving it the financial stability I like having with my financial institution. However, it’s worth noting that while CIT Bank accepts check deposits, it doesn’t offer personal checks with its eChecking account.
- 5.00% APY on savings balances above $5,000
- $0 monthly maintenance fees for checking and savings accounts
- Up to $30 in monthly ATM fee reimbursements
- Check deposits using the mobile app
- No physical branches for in-person banking
- No personal checks with the eChecking account
Best for online banking: SoFi
SoFi is my go-to for online banking thanks to its streamlined website and mobile app that allow me to bank, budget, track my credit and more all in one place. I value simplicity and efficiency in managing my finances, that’s why I find SoFi’s all-in-one-approach incredibly convenient. However, the trade-off is that it’s a fully online bank with no physical branches.
SoFi offers a single banking product — SoFi Checking and Savings — a combo that offers up to 4.50% APY when you receive direct deposits. It also features $0 monthly maintenance fees and $0 minimum balance requirements.
One feature that stands out about SoFi’s savings is the ability to create multiple savings buckets, which SoFi calls vaults, within the account that all earn the same high 4.50% APY. This can help you set up separate vaults for an emergency fund, an upcoming vacation, home renovations or a down payment for a future home.
While SoFi supports mobile check deposits, its downside is that making cash deposits isn’t as straightforward as it is with traditional banks. To deposit $2,000 in cash, I needed to visit a nearby partner retail location like CVS, Walgreens, or Target, and pay a $5 fee. I also faced SoFi’s limits of $500 each cash deposit and up to $1,000 a day, which is inconvenient if you frequently deal with cash.
- Up to 4.50% APY on your savings balance with direct deposits
- $0 monthly maintenance fees
- Savings buckets for different financial goals
- Check deposits using the mobile app
- No physical branches for in-person banking support
- Daily cash deposit limit of $1,000
Best for nationwide accessibility: Chase
Chase Bank stands out as a banking powerhouse with a vast nationwide network of branches and ATMs. If you prefer in-person banking, you might not be too far from one of Chase’s 4,700 physical locations.
The bank also supports 15,000 ATMs across the U.S. While this is a large number, Chase ATMs are mostly located in cities and bigger towns. I live in a somewhat remote area where I can only find Allpoint or MoneyPass ATMs in 7-Eleven, CVS, and similar retailers. However, Chase isn’t a part of these ATM networks, which puts the nearest Chase ATM 40 miles away from me.
Chase offers a wide range of banking products, the most popular among them its Total Checking account. This account charges a $12 monthly maintenance fee, which is waived if you maintain a $1,500 daily balance or receive $500 in monthly direct deposits, among other options.
One useful feature of Chase Total Checking is that it doesn’t charge overdraft fees if your account is overdrawn by up to $50 by the end of the business day. However, this account earns no interest, so it isn’t a great place to keep larger funds or savings.
Chase Savings is another deposit option that charges a $5 monthly maintenance fee that it waives if you maintain a daily balance of $300 or more. But this account earns 0.01% APY — far less than what many online banks offer today. For example, SoFi offers up to 4.50% APY on savings balances when you receive direct deposits.
The low interest you earn with Chase is a trade-off for its wide branch accessibility. That’s why it’s a great option for everyday banking, but parking the bulk of your funds in a high-yield savings account will earn you significantly higher interest.
- 4,700 physical branches and 15,000 ATMs in its network
- $0 overdraft fees on overdrafts of up to $50
- Comprehensive banking includes deposits, credit cards, loans and wealth management
- Easy ways to waive monthly maintenance fees
- No or low APYs on checking and savings accounts
- Few ATMs in remote and rural areas
Best high-yield account: Wealthfront
Wealthfront is an online-only financial technology company that partners with Green Dot Bank to offer the Wealthfront Cash Account.
This account offers an eye-popping 5.00% APY on all balances with no minimum deposit. Coupling this with a $0 monthly maintenance fee and up to $8 million in FDIC insurance makes it an attractive option for savers.
One of Wealthfront’s key strengths is in its liquidity features. The account offers unlimited free transfers and same-day withdrawals to eligible accounts, which I’ve found incredibly convenient for managing my cash flow. This flexibility extends to weekends and holidays, setting it apart from traditional banks.
The Cash Account integrates seamlessly with Wealthfront’s investment services. These services include a bond investment service that automates the process of building a Treasury bond ladder with varying terms. This feature can help you lock in high Treasury bond yields before the Federal Reserve cuts interest rates, allowing you to benefit from Treasury bonds’ exemption from state and local taxes.
The Wealthfront Cash Account does have a few drawbacks. Although it supports ATM access via a network of 19,000 fee-free ATMs, it charges $2.50 for out-of-network ATMs. You’ll also pay up to $5.95 for cash deposits at supported retailers.
- 5.00% APY on all cash balances
- Up to $8 million in FDIC insurance
- Same-day withdrawals — including weekends and holidays
- Seamless integration with Wealthfront investment services
- No physical branches for in-person banking
- Relatively small fee-free ATM network
- Fee-based cash deposits at retail partners only
Best for modern in-person banking: Capital One
Capital One adds a healthy dose of a modern banking experience to the traditional in-person experience. This bank supports hundreds of traditional branches and more than 50 cafes, where you can relax and bank at the same time, across 23 states and Washington, D.C.:
As someone who appreciates the comfort of a personalized experience, I found the idea of Capital One cafes strange initially, but it quickly grew on me. Meeting with a Capital One ambassador for my banking needs while grabbing a cup of coffee has become my new banking experience standard.
Capital One offers checking and savings accounts, along with credit cards and auto loans. Capital One 360 Checking features no monthly maintenance fee, no minimum balance requirements and no overdraft fees, regardless of your selected overdraft protection option. The 360 Checking account also offers access to over 70,000 fee-free ATMs nationwide. This has made it easy for me to find an ATM nearby, even in states where Capital One doesn’t have branches.
For those looking to grow their savings, Capital One 360 Performance Savings offers a competitive 4.25% APY with no minimum balance requirement. This high-yield savings account has a $0 monthly maintenance fee, helping you keep more of the interest you earn in your pocket.
- 4.25% APY on savings balance
- $0 monthly maintenance fees and $0 overdraft fees
- Modern in-person banking with cafe-style locations
- More than 70,000 fee-free ATM locations
- Fewer banking products compared to traditional banks
Best for 24/7 customer support: Ally Bank
Ally Bank has a long history that goes back to 1919, when it first opened its doors as GMAC in New York City.
Over time, the bank transitioned to an online-only model with no physical branches. But what it lacks in physical presence, it makes up for in benefits. Ally offers 24/7 customer support with wait times typically under 5 minutes, making it easy to reach a human to help you with your banking needs any time of the day.
Its Spending Account enables you to receive your paycheck up to two days early and offers an extensive ATM network of over 75,000 fee-free machines nationwide. Plus, you can receive up to $10 per statement cycle for out-of-network ATM charges. The best part is that this account has a $0 monthly maintenance fee.
Pair your Ally Spending Account with Ally Savings to earn 4.20% on your savings balance. Ally Savings gives you access to savings buckets that serve the purpose of multiple savings accounts without the hassle of monitoring several accounts. This helps you break up your savings based on your financial goals and easily visualize your progress. Ally Savings also has a $0 monthly maintenance fee.
However, as an online-only bank, Ally falls behind brick-and-mortar banks when it comes to handling cash. Ally Bank doesn’t accept cash deposits. This meant that every time I wanted to deposit cash, I had to deposit it at a different bank and then transfer the funds to Ally.
- 4.20% APY on your savings balance
- $0 monthly maintenance fees for Spend and Savings accounts
- Large fee-free ATM network and reimburses up to $10 in ATM fees per statement cycle
- Savings buckets help streamline savings
- No physical branches for in-person banking support
- No support for cash deposits
Online banks vs. traditional banks
It can be intimidating to think about moving your money from a brick-and-mortar bank to one that exists only on the internet. But with traditional banks closing branches, offering lower returns and charging more in fees, it may be time to find out whether online banking is right for you.
Benefits of online and digital banks
You can earn more interest. Online banks can pass on brick-and-mortar savings to you in the form of much higher interest rates. Where the national average is 0.45% at a traditional bank, yields at digital banks range from 0.5% up to 5% or more for high-yield savings and money market accounts.
You won’t pay high fees. Many online banks offer no-fee accounts — no minimum deposit, no overdraft fees and no monthly maintenance. Some also offer free checks and registers, depending on the account.
Often comes with robust budgeting and money management tools. When a mobile app or website is the face of your bank, it usually results in more bells and whistles — like budget tracking, credit score monitoring and peer-to-peer money transfers.
Useful perks and rewards. Digital banks sometimes partner with other apps to provide you rewards on your purchases, cash advances and even free insurance on your mobile phone or discounts on local entertainment and travel. And freedom from needing a location means you have a lot more options than just those in your neighborhood.
Drawbacks of online and digital banks
Limited in-person support. If chatting outside of a phone menu is important to you, prioritize customer support in your search for an online account. Make sure the bank offers 24/7 help — and that review sites aren’t filled with customers complaining of poor service.
Few ways to deposit cash. If your life revolves around cash — and cash deposits — an online account might be tricky. The online-only Axos Bank works with third-party services like Green Dot to deposit cash on a debit card at CVS, Kroger and other select retailers. But even if the bank doesn’t charge a fee, the retailer can charge as much as $5.95 per transaction. Banks like Discover allow fee-free cash deposits through deals with Walmart. But it definitely limits your options.
Fewer account choices. It’s true that most online banks offer only one checking and one savings account — or a hybrid account. And so you may find yourself choosing among banks, rather than choosing between accounts within a bank.
There’s nothing wrong with sticking to a bank you’re comfortable banking with. Finances can be stressful enough without introducing a lot of change and uncertainty. But by comparing your options, you may find an account that saves you money in the long run and grows your balances more quickly.
Questions to ask when comparing bank accounts
The type of bank that works best for you may not be as ideal for someone else. That’s why it’s good to narrow down what’s most important to you — starting with three key questions.
1. Are you benefiting from your accounts — or just paying fees?
Any brand you bank with is going to make its money, no matter what, but you could end up paying more than you need to if your account comes with a long list of fees and a paltry interest rate of under 1% APY.
Focus on a no-fee account or one with fees that can easily be waived by maintaining a minimum balance or meeting other requirements. Look for perks and tools that meet your needs, like free checks or ways to access your money most comfortably for you. And make sure you’re getting the best interest rate you can.
2. Do you need paper checks, statements and records?
If you still write checks and like a handwritten bank register to compare against a mailed paper statement, you may not be ready for the digital revolution. If a digital bank offers hard copies, ask about any fees associated with them.
Many senior accounts waive fees on paper statements or offer a way to waive them based on how often you use your debit card or if you’ve opted in to direct deposit.
3. Will you — and your finances — feel secure?
Security isn’t always about FDIC insurance and website encryption. (Although, those are important.) Some of us would rather never step foot in a bank branch again, while others need the security of sitting with a bank rep if something goes wrong.
If you’re part of that last group, start your search with bank brands and branches closest to you. Regional banks like Umpqua Bank offer cookies and coffee in their main lobby, while Capital One supports more than 50 cafés across the US where customers can get 50% off on food and drinks, talk to an associate or use an ATM.
You have a lot of options out there. Shopping around for the bank that’s best for you could help you to grow your wealth, instead of losing it to fees and charges for the banking services you use most.
Dig deeper: How to make sure your bank is FDIC-insured — and what to watch for with nonbanks
How we chose the best bank accounts for seniors
We analyzed various traditional banks and online financial technology companies to determine how their products fit the banking needs of seniors and retirees. We based our evaluation process on a range of factors that include:
Annual percentage yields (APYs). We assessed the interest rates you can earn with checking and savings accounts that each bank offers to help improve your passive income from existing savings.
Fee structure. We prioritized accounts with no monthly maintenance fees or the ability to easily waive these fees for seniors.
Cash accessibility. We considered the availability of physical branches and ATM locations and networks, along with features that support cash accessibility, such as fee reimbursements for out-of-network ATMs.
Customer support. We evaluated the ease, availability and quality of contacting customer support or receiving in-person assistance.
Overall product offerings. We reviewed each bank's range of overall products beyond checking and savings accounts. This includes credit cards, lending products and investment accounts.
The resulting curated list includes a mix of traditional banks and online banks that cater to varying preferences and needs. Keep in mind that our list is not exhaustive and doesn't include every option available in the market but can serve as a starting point for seniors and retirees researching the best banks for their budgets and lifestyles.
Sources
National Rates and Rate Caps, FDIC. Accessed August 28, 2024.
Large Commercial Banks, Federal Reserve. Accessed on August 28, 2024.
About the writers
Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia's expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
Heather Petty is a finance writer who specializes in consumer and business banking, personal and home lending, debt management and saving money. After falling victim to a disreputable mortgage broker when buying her first home, Heather set on a mission to help people avoid similar experiences when managing their own finances. Her expertise and analysis has been featured on MSN, Nasdaq, Credit.com and Finder, among other financial publications. When she's not breaking down the complexities of finance, she's a young adult mystery writer of an internationally acclaimed series — and counting.
Article edited by Kelly Suzan Waggoner
