We know that changing banks can feel overwhelming, what with so many options available, both at traditional banks in your neighborhood and online with accounts that allow you to control all your financial business without ever leaving the house. Finding the right mix of benefits, rewards and account options can be a difficult task — especially if you've relied on the same accounts for decades.
Quick Overview
Best for no fees: Betterment Checking
Best for earning interest: SoFi Checking and Savings
Best for budgeting seniors: Ally Bank Checking and Savings
Best for online-only banking: Discover Bank Checking
Best for investors: Charles Schwab Bank Investor Checking
Best for in-person support: Chase Bank Checking and Savings
Best for perks: Mountain America Credit Union MyStyle Checking
Whether you’re traveling, focused on your investments or saving up for a project at home, you need a bank that gives you access to your money without making you meet a bunch of requirements to get advertised benefits. And without piling on fees and penalties.
We’ve researched the market to find the best banks and accounts for active agers, seniors and retirees as of June 2024.
Betterment
You might know Betterment for its investment products, but its mobile checking account may be a good fit for those who don’t want to waste their money on banking fees. With this account, you pay no maintenance or minimum balance fees and no overdraft fees.
Betterment Checking is also a good pick for travelers, as all ATM fees and foreign transaction fees are reimbursed when you use your account’s debit card worldwide.
As an added bonus, your debit card works a little like a rewards card, earning you cash back on purchases from select companies and retail stores. Betterment is partnered with the Dosh app, which offers cashback rewards for shopping at stores like Costco and Shake Shack, or using your debit card for Lyft rides or to sign up for Disney+. These rewards are automatically posted to your account within 1 to 90 days, without your having to use the app.
Pros
- No account fees or overdraft fees
- ATM and foreign transaction fees are reimbursed
- Earn cashback on purchases through Dosh-partnered companies
Cons
- Not an interest-bearing account
- No physical branches for in-person support
- No cash deposits
SoFi offers a combination high-yield savings and checking account that offers top rates with almost no fees. As long as you’re willing to set up direct deposit to either your checking or savings account — your paycheck, pension or government payments — you can earn a competitive 4.60% APY on your savings balance and 0.50% APY on your checking balance.
Other banks may advertise higher rates on checking — some as high as 5% or more — but the requirements to get that rate can require some work. The accounts also usually come with account fees, which could serve to negate the interest you earn in the long run.
SoFi’s checking and savings account has no monthly maintenance fees or any other account fees. And as long as you direct deposit at least $1,000 each month, any overdrafts from debit card purchases are covered up to $50.
You can also earn an enrollment bonus after your first month of direct deposits to your account — $50 for deposits of $1,000 or more in the first 25 days, and $300 for deposits of $5,000 or more within that first 25 days.
Pros
- 55,000 fee-free ATM locations
- Up to 4.60% APY on savings and 0.50% APY on checking
- Up to $50 in free overdraft protection
- Access to direct-deposit paycheck up to two days early
- Up to $300 enrollment bonus
Cons
- Overdraft protection covers debit card purchases only
- No standalone checking or savings accounts
- No physical branch locations
- Uses Green Dot for cash deposits, which might require a third-party fee
Ally Bank offers interest-bearing checking and savings accounts with almost no fees and no minimum balance requirement. And while the bank doesn’t support branch locations for in-person support, you can talk, text or email customer support around the clock, 24/7.
Ally doesn’t offer a senior-specific account, but if you’re big into budgeting, both Ally’s Spending and Savings accounts may have the features you’ve been waiting for. Both accounts offer “buckets” that allow you to separate your funds into monthly budget items or savings goals.
For example, on the Spending side, you can fund up to 10 monthly bill buckets for things like your mortgage payment, groceries, insurance, prescriptions and credit cards. You decide how much to spend on each and how often it needs to be funded and either let Ally set aside that money for you or manually fund each bucket yourself. You can even set specific stores for each bucket so you can track how much you’re spending on a budget item by the receipts from that store each month.
In this way, Ally incorporates a budgeting spreadsheet and deposit account into one app.
Pros
- Interest-bearing spending and savings accounts
- Budget-friendly spending and savings buckets
- Access to your paycheck up to two days early
- Free standard checks and no account fees
- Two types of overdraft protection up to $250
- Reimburses up to $10 in out-of-network ATM fees each month
Cons
- No option to deposit cash
- Lower app reviews on non-Apple devices
- No branch locations
Discover Bank
Online banks have a lot of benefits in common, but Discover Bank stands out for its perks and rewards, highly rated mobile app and a commitment to offering no-fee deposit accounts. The bank also offers 24/7 customer support, which could help users used to having in-person branch support take the plunge into online banking.
While Discover’s checking account isn’t interest-bearing, you get 1% cash back on up to $3,000 in qualified debit card purchases each month. Its savings account comes with a 4.25% APY, which is compounded daily, unlike many big-bank competitors. You’ll pay no fees for either account — no maintenance fees, no overdraft or insufficient funds fees, no stop payment or item return fees. And there’s no minimum deposit to open either account.
Unlike many online accounts, Discover has a plan for customers who regularly deposit cash, and you won’t need to pay a third-party service to do it for you. If you ever need to deposit cash, you can walk into any Walmart and add the cash to your checking account without a fee.
The one area in which this bank falters is its CD and money market products. Both accounts require a high minimum deposit of $2,500, and you may be able to find higher APYs with low or no minimums at another bank.
Pros
- Highly rated banking app with 24/7 customer support
- Up to $30 in cashback bonuses each month
- No maintenance, overdraft or NSF fees
- Access to your paycheck up to two days early
- 60,000+ fee-free ATMs in Allpoint and MoneyPass networks
- Free cash deposits with your debit card at any Walmart
Cons
- No branch locations
- No interest-bearing checking account
- Weaker terms on CDs and money market accounts compared with other banks
Charles Schwab Bank
The Charles Schwab Investor Account isn’t specifically for older customers, but it offers a lot of perks to investors looking for easy transfers between their checking and brokerage accounts. The account is interest-bearing, though low for an online account, at 0.45% variable as of May 2024.
While Charles Schwab supports more than 400 brokerage branches worldwide, Schwab Bank is online only, which means you must be prepared to do all of your banking online, on a mobile app or over the phone using its 24/7 customer service line.
The account comes with no fees — even on overdrafts, domestic wire transfers or bounced checks and deposits. Frequent travelers will love getting unlimited rebates on ATM fees worldwide and never having to pay foreign transaction fees on debit card purchases. And whether you like contactless purchases or still write out paper checks, both are free with your Investor Checking account.
You must open a Schwab One brokerage account, but you don’t have to be an investor to enjoy the perks of this account. With no monthly fees or minimum deposits on either account, you can choose whether to take advantage of your brokerage account for investing or leave it empty and just use the checking account.
Pros
- No transfer fees between your checking and brokerage accounts
- No monthly fees or minimum balance requirements
- Unlimited rebates on ATM fees worldwide
- No foreign transaction fees on debit card purchases
- Free standard checks with a $100 minimum deposit
Cons
- No bank branches, only brokerage offices
- No way to deposit cash into your account
If a brick-and-mortar bank location is a must for you and customer support is vital, Chase Bank might be a good fit. Chase has the most branch locations of any bank in the U.S., with 4,700 nationwide and more than 15,000 ATMs.
And Chase is known for its customer service. The bank scored second place in J.D. Power’s U.S. National Banking Satisfaction Study, and the mobile app scored high on its own, earning a score of 690 — 19 points above the national average. Chase offers 24/7 customer support by phone, and if you prefer texting to talking, you can send messages to an account representative through the Chase app.
Choose from multiple checking and savings account options, depending on features most important to you.
Pros
- More branches than any other bank in the U.S.
- Top customer satisfaction scores from J.D. Power
- Early access to your paycheck, overdraft protection and fee reimbursem*nt, depending on your account
- Easy ways to waive your monthly fees
Cons
- No interest-bearing checking account options
- Low savings rates, typical of such a large bank
- High fees, depending on the account type you choose
Mountain America Credit Union
This rewards checking account isn’t only for seniors, but members who are ages 60 and older won’t pay the monthly maintenance fee to access the giant list of perks that comes with Mountain America’s MyStyle Checking.
Mountain America Credit Union is the ninth-largest credit union in the US, offering your typical banking benefits like no minimum balance requirement, interest rate discounts and contactless payment options. But the account throws in useful perks that include free telehealth services, prescription discounts, mobile phone replacement coverage and ID protection services to save you more.
Residents of Arizona, Idaho, Montana, Nevada, New Mexico and Utah may find one of the credit union’s 100 physical MACU branches close by, but all of the credit union’s benefits are available through online banking — whether you’re near a bank or not — as long as you can qualify for membership. If you can't, you can bypass residency, employment and affiliation requirements needed to become a member of MACU by joining the American Consumer Council for a $5 membership fee.
Pros
- No monthly fee for members age 60+ and no minimum balance requirement
- Automatic 0.25% discount on loan rates
- Telehealth services and prescription discounts at no cost to you
- $850 in mobile phone replacement coverage with a $50 deductible
- Identity protection including database and dark web monitoring
- Entertainment and travel discounts
Cons
- Requires MACU membership
- Physical branches in only six states
- No APY on checking
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.
How we chose the best bank accounts for seniors
We scoured the banking landscape, researching national and regional banks and credit unions to narrow down our best picks for older Americans. Beyond how well the banks fit into the feature areas we chose, we prioritized accounts without a lot of fees or a hefty set of requirements to get the rewards and benefits advertised. We also read through customer reviews and complaints with the Better Business Bureau and on consumer forums, looking for patterns in customer sentiment to make sure we avoided bank accounts that look good on paper but ultimately don’t treat patrons well.
Sources
National Rates and Rate Caps, FDIC. Accessed May 28, 2024.
About the writer
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.
