AMERICA’S BEST

BANKS2021

Introducing Newsweek’s firstRANKING of the financial institutions that best serve their customers’ needs in today’s challenging times CREDIT VISION/GETTY CREDIT DIGITAL

30 NEWSWEEK.COMNEWSWEEK.COM October 16, 2020 LIKE VIRTUALLY Methodology MAINE EVERY THE BEST BIG People's United Bank 17 MARYLAND IN EVERY STATE 141 OTHER To identify America’s Best , LendingTree in We looked for banks with a broad local footprint— MASSACHUSETTS consultation with Newsweek culled you don’t want to have to go too far out of your way Eastern Bank 83 candidates from among more when you need a branch or an ATM—that offer ASPECT OF than 2,500 FDIC-insured financial MICHIGAN institutions. LendingTree then applied a winning combination of low fees, competitive filters to narrow the candidates in interest rates and a broad array of services, including Huntington Bank 282 each category, based on the most a variety of loans and a high-performing mobile app. MINNESOTA OUR LIVES— salient features for each bank type work, school, shopping, leisure, you name it—the pandemic is changing the way or account; LendingTree supplied the U.S. Bank 132 Americans bank. And those changes, in turn, are creating a new set of challenges data and made recommendations for a and opportunities when it comes to picking the bank that best suits our needs. proprietary scoring system developed For one thing, we have a newfound need and affection for savings accounts, by Newsweek, based on the most 62 important factors for each type of bank evidenced by a more-than-doubling of the personal savings rate over the past or account. Data sources included MISSOURI several months, as the idea of building a solid emergency fund morphed from DepositAccounts.com, info published U.S. Bank 206 being an aspiration to an economic imperative. “The savings growth has been by each bank, FDIC reports, CFPB record-breaking,” says Ken Tumin, founder of the bank comparison site Depos- complaints and mobile app reviews. STATE | BANK | NO. OF BRANCHES MONTANA All together, 55 factors were itAccounts.com. But it’s tougher than ever to find a suitable account to house Bank of America 506 U.S. Bank 21 assessed, including various fees, those savings—one that doesn’t actually cost you money after factoring in fees, current and historical interest rates, NEBRASKA given that the average savings rate is now near zero. account terms, customer service PNC Bank 56 Bank of America 157 U.S. Bank 48 Meanwhile, lockdown mode is pushing many of us to finally embrace online features and mobile app scores. ALASKA banking in a major way. Traffic at local banks is down substantially compared to For state winners, the best big bank NEVADA Wells Fargo 43 last year, with about half of customers who previously relied on physical branches needed to have at least one branch per 100,000 residents and $10 billion 53 U.S. Bank 79 ARIZONA and ATMs saying they’ve increased their use of mobile apps and 35 percent mak- in assets; the best small bank had to NEW HAMPSHIRE ing more use of their bank’s website, according to consultants Kearney. Experts have less than $10 billion in assets Bank of America 129 believe the shift is likely to stick. “Once you get used to the technology and how and be among the five banks with the Federal Bank 24 People's United Bank 25 easy and convenient it is to bank this way, it’s hard to go back,” says Tumin. most branches in the state. A bank ARKANSAS ILLINOIS NEW JERSEY Customer service is also becoming a more important consideration, as com- couldn’t have more than one branch to U.S. Bank 35 be considered for best online bank. For U.S. Bank 190 109 plaints about providers have surged, up 50 percent from March best customer service, a bank had to CALIFORNIA through July vs. the same time period in 2019, according U.S. PIRG. "The record have responded to at least 97 percent INDIANA NEW MEXICO U.S. Bank 560 of complaints filed with the CFPB in level of consumer complaints is a blaring red light First Merchants Bank 92 Bank 23 signaling the huge challenges consumers are fac- a timely fashion to be considered. COLORADO ing during the COVID-19 pandemic,” says Gideon To be considered for best online IOWA NEW YORK savings or online checking accounts, U.S. Bank 133 Weissman of Frontier Group. a bank had to have fewer than 100 U.S. Bank 82 Citibank 227 To help you navigate this new financial land- CONNECTICUT branches; banks needed more than KANSAS NORTH CAROLINA scape, Newsweek has partnered with Lending- 100 branches to win for either the People's United Bank 169 best checking or best savings account U.S. Bank 34 Bank of America 132 Tree, the financial services comparison site, for DELAWARE award. (For the full methodology, our first Best Banks rankings. From a universe of KENTUCKY NORTH DAKOTA go to newsweek.com/bb-2021.) Wilmington Savings more than 2,500 FDIC-insured institutions, we Newsweek exercised final editorial Fund Society 32 U.S. Bank 115 Bremer Bank 14 assessed U.S. banks and the savings and checking judgment when selecting winners. accounts they offer based on 55 factors to come Current interest rate information DISTRICT OF COLUMBIA LOUISIANA OHIO up with a best-in-class option in 18 categories. is accurate as of September 24, Citibank 16 Capital One 92 U.S. Bank 238 (Find the rankings online at newsweek.com/bb- 2020 and represents the highest rate a customer could earn, if all 2021.) One or more of these winning bank may qualifications are met. The complete be the perfect choice for your family. data set was last updated by

→ Diane Harris, Deputy Editor in Chief LendingTree on September 10, 2020. CREDIT

32 NEWSWEEK.COM October 16, 2020 NEWSWEEK.COMNEWSWEEK.COM 33 STORYTAG

STATE | BANK | NO. OF BRANCHES

OKLAHOMA BEST MidFirst Bank 49 BIG BANK (OVERALL WINNER) Washington Federal Bank 46 Best Online With interest rates near zero and the Savings Account PENNSYLVANIA pandemic pushing people to do more of their PNC Bank 338 The pandemic has sparked a big jump in banking online, a great bank needs to deliver the personal savings rate and online RHODE ISLAND competitive rates, low or easily-waived fees savings accounts—which offer higher-than- average interest rates, accessibility and BEST Bank of America 28 and a superior mobile app. The best-in-class safety—are a good choice for emergency SOUTH CAROLINA choice also has to offer good customer service, funds. To identify a winner, Newsweek prioritized a combination of consistently 77 the option to visit a local branch and a variety Bank of America high rates, low fees and an outstanding SAVINGS SOUTH DAKOTA of financial products, including loans. The digital customer experience. winner here delivers on all counts. Wells Fargo 39 VARO BANK ACCOUNT Varo Savings Account Just over half of bank customers prefer using Recent interest rate: 2.8% U.S. Bank 89 branch services some of the time to a digital- up to $10,000, then 0.81% TEXAS Minimum to open account: $0 only experience, J.D. Power reports—but you’ll sacrifice some yield to get this. To rise to the Bank of America 355 CITIBANK top in this category, a bank needed to have at UTAH NUMBER OF BRANCHES: MOBILE least 100 branches, consistently above-average 49 JPMorgan Chase APP SCORE savings rates and low fees. VERMONT (1 TO 5 SCALE): People's United Bank 38

VIRGINIA Bank of America 119 4.78 WASHINGTON

Washington Federal Bank 81 700 4 3 2 1 0 TIMELY RESPONSE RECENT TOP Best Savings WEST VIRGINIA TO COMPLAINTS: SAVINGS RATE: Account for Kids WesBanco 44 HSBC WISCONSIN Young customers shouldn’t be penalized Direct Savings Account 100% 0.9% for having only modest sums to deposit. 116 U.S. Bank They’re kids, after all. For this category, WYOMING only special accounts for those under 18 FEE-FREE ATMS: were considered; priority factors included RECENT U.S. Bank 14 a low minimum to open the account, no or low fees and a decent interest rate to keep INTEREST PUERTO RICO RATE: young savers motivated. 0.5% Banco Popular 160 65,000+ CAPITAL ONE Kids Savings Account MONTHLY Recent savings rate: 0.5% MAINTENANCE Minimum to open/monthly fee: $0 FEE:

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34 NEWSWEEK.COM Icon illustrationsOct obyber ILYA 16, LI 2020REN Photograph by IAN ROSS PETTIGREW NEWSWEEK.COMNEWSWEEK.COM 35 YOUR MONEY

Best Certificates BEST of Deposit

These timed savings accounts offer CUSTOMER higher interest rates for leaving your money untouched for a set period, so how much you earn was the most important consideration. Factors such SERVICE Best Regional Bank as penalties for withdrawing your Complaints about banks have risen sharply during the pandemic— money before the end of the term and Best Online Bank the minimum amount needed to open precisely when customers need good service the most. Banks with The winner took the top spot in more the account were also weighed. With lower overhead than brick-and- the fewest problems reported to the Consumer Financial Protection big-bank state rankings than any mortar institutions, banks that operate other financial institution in the primarily online typically offer higher Bureau, a timely response rate, a helpful mobile app and a variety database, dominating in the Midwest LIVE OAK BANK rates, plus lower fees. Lately the rate of dedicated customer service lines rose to the top of our list. and Western regions. Six-Month CD advantage has shrunk, making low fees Recent rate: 0.6% more critical, along with great customer U.S. BANK 12-month average rate: 1.52% service and a killer mobile app. Number of state wins: 16

Commerce Bank Mobile app score: 4.75 PRIMARY BANK DISCOVER 12-Month CD Recent checking rate: 1% on up to Recent rate: 0.95% $3,000 in debit purchases a month COMPLAINTS WITH TIMELY RESPONSE: 100% 12-month average rate: 1.52% Mobile app score: 4.79 MOBILE APP SCORE: 4.7 C.J. BURTON/GETTY C.J. STORYTAG

MAINE OHIO THE BEST SMALL Machias Savings Bank 16 Park National Bank 105 BEST MARYLAND OKLAHOMA SMALL BANK IN EVERY STATE Shore United Bank 17 First United Bank and Sometimes smaller can be better, with more Trust Company 31 BANK (TIE) MASSACHUSETTS personalized service and a perk or two that bigger OREGON East Boston Savings Bank 41 A hometown bank that offers the banks don’t offer. Each of these small bank winners First Federal Savings and Loan personalized feel of local branch service is among the five institutions with the most branches MICHIGAN Association of McMinnville 8 ChoiceOne Bank 27 while delivering competitive rates and in its home state and sports comparatively low PENNSYLVANIA mobile banking performance on par with fees, competitive yields and a good mobile app. MINNESOTA Bryn Mawr Trust 32 larger national banks can be a great choice Merchants Bank, National Association 21 RHODE ISLAND for many customers. Add in low fees and a MISSISSIPPI Centreville Bank 8 variety of financial products, including loans, The Citizens National SOUTH CAROLINA and you have a small-bank winner. Bank of Meridian 24 First Palmetto Bank 23 STATE | BANK | NO. OF BRANCHES FLORIDA MISSOURI SOUTH DAKOTA First Federal Bank 23 Southern Bank 37 ALABAMA First Dakota National Bank 18 GEORGIA MONTANA Bryant Bank 16 TENNESSEE Queensborough National TrailWest Bank 14 FIRST 1ST ALASKA Bank & Trust Company 23 Reliant Bank 27 NEBRASKA GUARANTY CONSTITUTION Mt. McKinley Bank 5 TEXAS HAWAII Security First Bank 22 BANK BANK ARIZONA Territorial Savings Bank 29 First Financial Bank, (LOUISIANA) (NEW JERSEY) NEVADA 78 Commerce Bank National Association IDAHO of Nevada 2 of Arizona 4 UTAH NUMBER OF BRANCHES: 27 NUMBER OF BRANCHES: 27 Bank of Idaho 10 ARKANSAS NEW HAMPSHIRE Cache Valley Bank 16 ILLINOIS Mascoma Bank 15 Bank of England 6 VERMONT First Mid Bank & Trust 58 CALIFORNIA NEW JERSEY Union Bank 14 INDIANA 1st Constitution Bank 27 Mechanics Bank 146 VIRGINIA German American Bank 50 COLORADO NEW MEXICO Carter Bank & Trust 75 IOWA First American Bank 15 NBH Bank 48 WASHINGTON Fidelity Bank & Trust 30 CONNECTICUT NEW YORK Heritage Bank 55 KANSAS The First National Bank Newtown Savings WEST VIRGINIA of Long Island 52 Bank 15 Community National Bank & Trust 25 MOBILE APP SCORE MOBILE APP SCORE Union Bank, Inc. 8 DELAWARE KENTUCKY NORTH CAROLINA (1 TO 5 SCALE): (1 TO 5 SCALE): WISCONSIN The Bank of Delmarva 4 Stock Yards Bank & Trust Company 29 HomeTrust Bank 20 Nicolet National Bank 38 DISTRICT OF COLUMBIA LOUISIANA NORTH DAKOTA WYOMING City First Bank of D.C. 1 First Guaranty Bank 27 Dakota Community Bank & Trust 11 Central Bank and Trust 5 4.75 4.61

38 →NEWSWEEK.COM Find the rankings online at NEWSWEEK.COM/BB-2021 October 16, 2020 NEWSWEEK.COM 39 YOUR MONEY

Best High-Yield Checking Account

When the category is all about high rates, a winner has to deliver a stellar payout; interest-rate factors made up two-thirds of the total score for these accounts and only those offering rates above 1 percent were considered. Fees for things like ATM use and overdrafts were also weighed.

BEST FIRST SECURITY BANK & TRUST Kasasa Cash CHECKING Recent interest rate: 2.01% up to $50,000 ACCOUNT Monthly service fees: $0 Brick-and-mortar banks typically pay zero or next-to-nothing on checking accounts; since they’re most often used for everyday cash and bill-paying, that may not matter much—as long as you’re not actually losing money due to high fees. That’s why low fees (service, ATM, overdraft) were the top consideration in this category for banks with more than 100 branches. Best Online Checking Account

A big advantage of many online checking accounts: no monthly maintenance fees or charges for using out-of-network ATMs. That CENTENNIAL was a minimum requirement for our winner, along with a well-regarded mobile app and a high interest rate—but you will have to BANK meet direct-deposit and debit-card purchase requirements to earn that top yield. Freedom Checking FIRST SECURITY MONTHLY MAINTENANCE FEE: BANK & TRUST Kasasa Cash $5, WAIVED WITH E-STATEMENTS Recent interest rate: 2.01% up to $50,000 ATM FEES: REIMBURSEMENTS OFFERED Mobile app score: 4.72 GETTY

40 NEWSWEEK.COMNEWSWEEK.COM October 16, 2020 Photograph by JOHN SCOTT NEWSWEEK.COMNEWSWEEK.COM 41 YOUR MONEY

Best Traditional Best Free Checking Account Checking Account

Some bank customers prefer to go old Fee avoidance was the top consideration school for checking; they want branch for this category. Only banks that do not access, physical checks and paper charge a monthly maintenance or service statements and don’t want to be forced fee were considered; other fees made up to bank or pay bills online to receive 40 percent of the score. A low minimum to top rates and avoid fees. The winner open the account and a competitive yield offers all that, plus free checks and ATM were also key factors. reimbursements, if you’re over age 50. BAY STATE CENTENNIAL BANK SAVINGS BANK Diamond Checking Free Kasasa Cash Minimum to open account: $100 Recent interest rate: 2.01%, Monthly service charge: $0 up to $20,000 ATM fees: unlimited reimbursement

Best Checking Best Small Account for Business Checking College Students Account

College students need features that suit Business owners need a good blend of solid their age and lifestyle, including no or low interest rates and low fees to avoid eating ATM charges because they tend to use into their profits, especially since many more out-of-network machines; low fees small business owners may not have a lot of if they occasionally trip up and overdraw cash on hand at the moment thanks to the the account; and low minimums to open pandemic. The winner offers no monthly the account and avoid monthly charges. A fee, unlimited transactions and $10 in ATM good mobile app also helps. fee reimbursements each month.

AXOS BANK FIRST INTERNET BANK Essential Checking Small Business Checking Minimum to open/monthly fee: $0 Recent interest rate: 0.5% ATM fees: unlimited reimbursement Minimum to earn interest: $10,000 STEVEN PUETZER/GETTY STEVEN

42 → Find the rankings online at NEWSWEEK.COM/BB-2021