Moving Your Money? Here's How to Make Sure Your New Bank Is Secure

Looking for a new bank account? I don't blame you -- banks are better than ever these days. A lot of them offer accounts that don't have monthly maintenance fees and can be opened online in a matter of minutes -- no shoes (or pants) required. That said, it's a good idea to do your research before you open an account with just any old bank and fund it with your hard-earned cash.

So before you jump on that sweet high-yield savings account paying 5% APY, make sure the new bank is a safe home for your money. Here's how.

1. Check its credentials

If you're considering opening accounts with a new bank, the essential first step is to check whether it's a member of the FDIC. The Federal Deposit Insurance Corporation is a government agency that ensures the safety of banks in a few ways. It's been around since 1934 and was created in response to bank failures after the stock market crash that signaled the start of the Great Depression.

The FDIC is perhaps most famous for its insurance program for consumer deposits. Under FDIC protection, up to $250,000 per depositor, per insured bank, per account ownership category will be returned to you in the event of bank failure.

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 9, 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 9, 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 FDIC also supervises banks to ensure they comply with consumer protection laws and focus on meeting the credit needs of their communities. In short, it's best to avoid banks that aren't under the FDIC's purview. You can check whether yours is by plugging its name into the FDIC BankFind Suite.

Oh, and if you're considering a credit union, the NCUA serves the same function and offers that same level of insurance on your money.

2. Read reviews

It also pays to spend some time googling for reviews of your prospective new bank. I recommend looking for reviews from personal finance authorities to get the skinny on account offerings and rates. Good news: Here at The Motley Fool Motley Fool Money, we review banks all the time.

It's also a good idea to look for reviews from regular folks -- Reddit, the Better Business Bureau, and TrustPilot are all good options here. People do like to complain on the internet, but if you see a lot of the same problems repeated in multiple reviews, that's a signal of a known issue with a particular bank. If the issue is security-related, that's an even clearer sign to avoid that bank.

3. Explore security features

If it sounds like the bank you're considering has a good track record with consumers, and it's under FDIC protection (or NCUA protection, in the case of a credit union), it's time to dig into its specific security features.

It's a good sign if a bank offers multi-factor authentication for logging into your account. For example, you might need to type in a code that's been emailed or texted to you along with your username and password. Other features worth targeting include debit card blocking (which will allow you to deactivate your debit card if it goes missing) and single-use debit card numbers. These let you use your debit card to shop online with a one-time-use number, so your real one can't be exposed if there's a data leak.

If you're unsure about a specific bank's safety features, consider reaching out to customer service with questions. Most of us aren't rich, and if something happened to the money in our savings accounts, it would mean a major hardship. So take the time to ensure a given bank is both safe and convenient for managing and accessing your money.