Choosing a New Bank? Never Overlook These Features of the Safest Banks

Ready to find a new bank account to make managing your money simpler, cheaper, and perhaps more fun? I recommend adding "safer" to that list. Most of us aren't rich, and the prospect of losing our money to scammers or a bank failure is frankly terrifying.

Here's a look at some of the top features of the safest banks -- look for these to ensure your money is secure and you can sleep better at night.

FDIC insurance

Right off the bat, you should never do business with any bank that isn't a member of the FDIC. (Luckily, it's easy to find out if a bank is -- you'll see it on the bank's website, or can use the FDIC's BankFind Suite tool.)

The Federal Deposit Insurance Corporation was created by the federal government in response to the Great Depression–era bank failures that saw ordinary Americans lose their life savings.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

The standard FDIC coverage these days is $250,000 -- up to $250,000 per depositor for each account ownership category is safe (so if you co-own the account, you're protected for up to $500,000). The money will be returned to you if your bank folds.

That's a lot more money than I ever expect to have in the bank, and I'm willing to bet the same is true for you, so you can sleep easier at night knowing your cash is safe.

Strong technical security features

There's a slew of security features that you'll find at the safest banks. If you're looking for a new home for your money, it's worth targeting these in particular:

• Two-factor authentication: You should be able to opt in for extra verification when you log into online banking or your mobile app. You might need to enter your username and password, then enter a code that's emailed or texted to you.
• Debit card locking: If you lose track of your debit card, you should be able to lock it quickly via online banking or your mobile app. This will keep your money safe from thieves.
• Debit cards with EMV chips: EMV chips are becoming more and more common, and ideally, your bank's debit cards should have them. They are safer than the traditional magnetic stripe, as they generate a unique code for every transaction -- making it harder for a scammer to steal your card information.
• Alerts of all kinds: You should have the option to activate app notifications, text messages, or emails when there's suspicious activity in your bank account, money is directly deposited, or when your balance drops below a certain level. You should know what's happening with your account at all times, and the best banks can help.

Readily available customer service

Speaking of staying on top of bank account activity, you should look for a bank that offers strong customer service that's available 24/7. If you discover suspicious charges on your debit card or a chunk of your money has been mysteriously withdrawn from your checking account, you need to be able to get a human to help you ASAP.

Online banks offer particularly robust customer service -- my own online bank even has a widget on its login page that shows you how long you can expect to wait if you call. But you can find great customer service from the big banks, too.

It's a good idea to read customer reviews of any bank you're considering joining. Keep in mind that people like to complain on the internet, and especially about big businesses like banks. But if you see the same problem being mentioned in multiple reviews, it's likely an issue for that bank.

If you're choosing between different banks, you're probably considering features like APY, account types, and perhaps branch locations. But it's a good idea to add safety to your list, too. The sleep (and money) you save will make you glad you did.