While there is no single answer to what is the best bank for a retired person, several top financial institutions offer specialized products designed to meet the unique needs of older adults. Your ideal choice will depend on your priorities, such as maximizing interest, having in-person support, or preferring a fully digital experience.
Key Considerations for Choosing a Bank in Retirement
- Fees and Minimums: Many banks offer accounts for seniors with waived monthly maintenance fees, free checks, and low-to-no minimum balance requirements. These small savings add up significantly on a fixed income.
- Interest Rates (APYs): With a substantial portion of your assets in savings, seeking out the highest possible Annual Percentage Yield (APY) can help your money grow faster. Online banks often excel here due to lower overhead costs.
- Customer Service and Accessibility: Consider your comfort level with technology. Traditional banks offer face-to-face assistance and notary services, while online banks provide 24/7 phone or chat support.
- Fraud Protection and Security: All major financial institutions offer robust fraud protection, but dedicated resources for seniors, such as those offered by Bank of America, can be an added advantage. Be aware that FDIC insurance is standard up to $250,000 per depositor per ownership category.
- Integrated Services: Some retirees prefer having all financial products—checking, savings, and investments—under one roof. Institutions like Charles Schwab and Fidelity offer integrated banking and brokerage accounts that may be convenient.
Top Bank and Credit Union Options for Retirees
Online Banks for High Returns and Low Fees
Online-only banks are strong contenders for retirees who are comfortable with technology and want to maximize their interest earnings. Their lower operating costs often translate to higher APYs for customers.
- Axos Bank Golden Checking: Specifically for ages 55 and over, this account offers no monthly fees, a large network of over 91,000 fee-free ATMs, and free checks.
- Ally Bank Interest Checking: This account offers competitive interest rates on balances and has no monthly maintenance fees or minimum balance requirements. It also provides free access to over 43,000 Allpoint ATMs.
- SoFi Checking and Savings: For tech-savvy retirees, SoFi offers a combination checking and savings account with high APYs on both balances and no monthly fees. It also provides early access to direct deposits, including Social Security benefits.
Traditional Banks for In-Person Service
If you prefer the security and familiarity of a physical branch, a traditional bank might be a better fit. Many offer specific accounts or waived fees for seniors.
- U.S. Bank Smartly Checking: This account waives the monthly fee for customers aged 65 and older. Perks include waived paper statement fees, free checks, and discounts on safe deposit boxes.
- Chase Total Checking®: While not exclusive to seniors, this account has a wide branch network and the monthly fee can be waived with a monthly direct deposit of $500 or more, a common practice for retirees with Social Security income.
- Regions 62+ LifeGreen® Checking: For those living in the Southeast, Midwest, or Texas, this account offers perks for customers aged 62 and older, such as discounts on loans and a monthly fee that can be waived with a direct deposit.
Credit Unions for Personalized Service and Better Rates
Credit unions are member-owned, non-profit institutions that often provide more personalized service and better rates than big commercial banks. Membership is often based on location or affiliation.
- Lake Michigan Credit Union Max Checking: This account offers a high APY for balances under $15,000, which can be achieved by meeting simple requirements like having direct deposits and using a debit card a certain number of times per month.
- Consumers Credit Union: With a high-yield checking account paying a high APY on balances up to $15,000, this credit union is an attractive option for maximizing interest.
- Golden 1 Credit Union: Offers an add-on to its free checking account for members 62 and older, providing very low fees, no monthly service fees, and free checks.
Comparison Table of Top Banks for Retirees
| Feature | Axos Bank Golden Checking (Online) | U.S. Bank Smartly Checking (Traditional) | Lake Michigan CU Max Checking (Credit Union) |
|---|---|---|---|
| Best For | Tech-savvy, high APY, low fees | In-person service, senior-specific perks | Maximizing APY on smaller balances |
| Age Requirement | 55+ | 65+ for fee waiver | None, but tailored benefits for seniors |
| Monthly Fee | $0 | Waived for 65+ | No fee |
| APY | 0.10% | Variable (generally low) | High APY (tiered, max on balances under $15K) |
| Checks | Free personal checks | Free checks (first order) | Free checks |
| ATM Access | 91,000+ fee-free; $8/mo reimbursement | U.S. Bank & MoneyPass ATMs fee-free | Nationwide ATM fee refunds |
| In-Person Branches | No | Yes, 2,000+ branches | Yes, primarily MI and FL |
Conclusion: Finding Your Best Fit
Choosing the best bank for a retired person depends on your individual needs and banking habits. For those prioritizing high interest and comfort with digital services, online banks like Axos or Ally are excellent choices. If in-person branch access and senior-specific perks are more important, traditional banks like U.S. Bank provide a strong offering. Alternatively, credit unions such as Lake Michigan Credit Union combine personalized service with attractive rates, making them a solid hybrid option. By evaluating your personal needs against the features, fees, and services of each institution, you can make an informed decision that will provide financial peace of mind throughout your retirement.
