Chances are, you've been with the same bank for years. After all, it's easier to stick with the checking account you have now than to switch to a new one. But every once in a while, it's worth looking at what else is out there.
Even if you're mostly satisfied with your current bank, you may find that a different one better fits your needs, whether with lower fees, higher interest rates, superior in-person services, or more-attractive premium account packages that layer on the perks as your wealth grows. Or you may choose to stick with your current institution for everyday banking and open a savings account or certificate of deposit at an online bank or credit union, taking advantage of high yields on your extra cash.
You'll find plenty of great options to consider here. With the help of LendingTree, which collects deposit-account information, we've analyzed interest rates, fees, balance requirements and other features of accounts at national banks, credit unions, online banks and regional banks, and we've named winners in each of those categories. We've also highlighted two institutions that may be strong choices for customers in each of four profiles: Retirees, high-net-worth clients, travelers and families with kids.
Whether you're looking for in-person services, high yields or low fees, you can find a suitable choice of a bank for retirees here. Interest rates change frequently, so before you commit to any of these accounts, check the current yield. Yields and other terms listed here are as of early July.
Fidelity Investments
Fidelity's Cash Management Account is a brokerage account offering many of the features that come with a traditional checking account, and it's a great choice for customers who have other investment accounts with Fidelity. Cash Management has no monthly fee or minimum balance requirement, and standard checks are free. You get unlimited reimbursement of out-of-network ATM fees worldwide, and you pay no foreign-transaction fee on transactions you make abroad with your debit card.
You have two options to earn a yield on your cash, and both allow you to spend or withdraw your money at any time. One is to "sweep" the funds into partner bank accounts, protecting up to $4 million against bank failure with Federal Deposit Insurance Corp. coverage; recently, sweep balances earned a 1.84% yield.
Alternatively, you can hold the money in Fidelity Government Money Market Fund (SPAXX), with a recent seven-day yield of 3.29%. While a money fund is a low-risk place to park cash, it doesn't come with FDIC coverage.
TD Bank
Where it is: About 1,050 locations across 15 states (mostly on the East Coast) and in Washington, D.C. (Rates and terms are for customers in Mount Laurel, N.J.)
TD's Beyond Checking account offers a number of perks that retirees may appreciate, including free standard checks, money orders, cashier's checks and incoming wire transfers. One outgoing wire transfer is free each month, too. And TD reimburses fees that out-of-network ATM operators charge to use their machines as long as you have a balance of at least $2,500.
You won't pay the $25 maintenance fee if you have $5,000 or more in monthly direct deposits, maintain a daily balance of at least $2,500, or have at least $25,000 in combined balances in eligible TD deposit accounts and loans.
The Simple Savings account waives the $5 monthly maintenance fee for those who are 62 and older, although its yield was recently just 0.02%. For a better interest rate on your savings, check out TD's Choice Promotional CDs. Recently, yields included 3.51% for a nine-month term and 3.25% for a 12-month term, and the minimum deposit is just $250.
Choosing the right bank can help you manage your money today, but retirement brings new decisions about income, taxes, healthcare and preserving your savings. A financial advisor can help you create a strategy that supports your goals throughout retirement.
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Methodology
With data from LendingTree, which collects deposit-account information, as well as from financial institutions and other sources, we evaluated national banks, credit unions, online banks (including online accounts from brokerage firms) and regional banks. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit.
We looked at features including interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier's checks, paper statements and overdraft-protection transfers; overdraft fees; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
