Banking

Best Banks for Retirees | Banking Advice 2022

Posted on by Avivan Wilson
09
May

Best Banks for Retirees in 2022 that you should know. DO TRUNG DUONG has compiled the best banks for retirees in the following article.

Fixed-income retirees may be looking for differentiating features from their bank than the bank’s younger customers. Shopping around a new bank that might better suit their needs can be a good opportunity to pay less fees.

Bruce McClary, senior vice president of communications for the National Foundation for Credit Counseling and a former US News contributor, said the main issue for retirees is choosing a bank that “really understands the challenges.” challenges seniors face when managing tight budgets”.

What do retirees want from a bank?

what retirees want from a bank

Many retirees often look for banks that offer more flexible terms like low minimums for checking and savings accounts, no monthly fees for the account, and services like free ATM withdrawals – or fees are easily waived. They are also looking for perks like free checks, accessible branches close to home, and some investment services.

McClary said retirees often want to grow their dollar a bit more than other banking customers and aren’t just looking for a bank that offers the maximum return on their deposits.

“Some banks do a better job than others when it comes to providing access to programs that promote financial wellbeing and assist with budgeting,” says McClary.

Evan Kulak, co-founder of Polaris Portfolios, a Massachusetts-based financial planning firm that works with banks and credit unions, says a major challenge retirees are facing long-lasting extremely low interest rates.

Since interest rates are not expected to rise for a few years or so, another challenge retirees face is generating enough money from their fixed-income products to cover their expenses. fees, he said.

“Retirees are looking for products that offer primary money security, access to capital, and competitive returns,” says Kulak. “Banks are trying to meet the income needs of retirees by offering attractive high-yield savings accounts and certificates of deposit.”

Should you consider an online bank?

Some retirees who don’t need in-branch service can explore options including online-only banks.

As some banks still have limited hours for their branches and because retirees need to minimize their exposure to COVID-19, it is important for them to find a bank that does the deposit. via mobile phones and other online transactions that are easy to understand, easy to use and reliable. Stephen Ritter, chief technology officer of Mitek, a provider of mobile deposit technology to US banks and a provider of identity verification technology.

Retirees should look for banks that offer instructions on how to use mobile deposits; provide a feature that allows users to easily take a clear picture of the check they want to deposit; encourage retirees to experiment with mobile deposits first, such as by depositing a $5 “test check” that customers can only deposit through mobile deposit; and offers a 24/7 call center to help with any issues, says Ritter.

Best bank for retirees

best bank for retirees

Retirees are looking for banks that don’t charge monthly fees or require minimum balances because some don’t accept direct deposit. Banks are expected to also offer higher interest rates on their savings.

Some retirees are less inclined to use online banking than their peers. Others need to sign up for direct deposit options to receive Social Security payments, tax refunds, stimulus funds and pension payments.

“In these tumultuous times, direct deposit helps retired seniors send money more safely and quickly,” says Kulak. “Banks that offer supported online banking and comprehensive phone banking services can provide a valuable and secure service to retirees.”

Allied Bank

Allied Bank offers a savings account with no monthly fees and no minimum balance requirements, and it pays 0.6% on all balances. Its checking account has no fees and free checks.

Detect

Detect offers a savings account with no monthly fees and no minimum balance requirements, and it pays 0.6% on all balances. The checking account offers 1% cashback on all debit card purchases up to $3,000, with free checks and no fees for underfunding or overdraft protection.

Hsbc Bank

Hsbc Bank offers a savings account with no monthly fees and no minimum balance requirement and it pays out 0.01% for balances under $15,000, rising to 0.05% for balances of $15,000 or more .

Charles Schwab

Charles Schwab offers checking accounts with no monthly fees or minimum balance requirements and unlimited ATM fee reimbursement globally to travelers. It does not charge foreign transaction fees and deposits earn 0.03%. Its savings account offers similar benefits, with deposits yielding 0.05% interest.

American Express offers a savings account with no monthly fees. It has no minimum balance requirement and pays 0.6% on all balances.

Marcus by Goldman Sachs

Marcus of Goldman Sachsprovide aonline savings accounts with no fees or minimum deposit amounts. It offers 0.6% deposit. Marcus does not include checking accounts.

Bank tdTD 60 Plus’s Checking program offers free checks, money orders, and paper statements, but requires a daily balance of $250 to avoid the $10 monthly fee. It also offers a 0.25% discount on home equity and personal loans.

Reviews of the Best Bank Accounts for Seniors

Review best bank for seniors

TD Bank 60 Plus

The 60 Plus Checking Account from TD Bank offers a low initial balance minimum, no fees, free checks, and loan discounts. In addition, the account receives interest. All of this makes TD Bank our choice for the best overall bank for seniors.

Pros:

  • Opening balance requirement of $0
  • Interest is earned on checking accounts.
  • Standard checks are free, while certain designs are discounted.
  • Discounted interest rates on home equity and personal loans

Cons:

  • Monthly maintenance price of $10
  • There are a limited number of bank branches in the United States.
Anyone 60 or older can open a 60 Plus Checking Account with a deposit of $0. The account pays 0.01 percent interest, which isn’t much but surpasses the nil interest rates given by other national banks. The account does have a monthly maintenance fee of $10, but it is eliminated if you maintain a minimum daily balance of $250.
This account provides a variety of free perks tailored to seniors. Online or hardcopy statements, money orders, or formal bank checks are all free of charge. Checks with the TD Bank logo are free (or get a discount on select check styles if you prefer). You will also be eligible for a 0.25 percent discount on home equity and personal loans.
TD Bank now has over 1,200 branches in 16 states, with the majority of them in New York, New Jersey, Massachusetts, Florida, and Pennsylvania. You will, however, have access to TD’s online banking and mobile app, which will let you to manage your accounts, pay bills, transfer money, deposit checks, and use Zelle to make person-to-person payments.

Axos Golden Checking

The Axos Golden Checking account does not impose fees for a variety of banking services, including overdrafts, as most rivals do. You may also get free personal checks and earn interest on your account.

Pros:

  • Many bank services are free of charge.
  • The account is earning interest.
  • Monthly ATM fee refunds of up to $8
  • Checks for free

Cons:

  • Because it is an internet bank, there are no branches for customers who like to bank in person.
  • There is a minimum opening balance requirement.
The Golden Checking account is available to anybody 55 and older, which is one of the youngest age requirements we’ve encountered for senior accounts. In addition to not charging a monthly service fee, this account does not charge an overdraft or insufficient fund fee, which is rare for most of the accounts we investigated.
You may start the account with $50, which is slightly more than the minimum requested by other accounts but not prohibitively expensive. There is no minimum monthly balance requirement after you create the account, and you’ll get 0.10 percent interest on any amounts under $100,000, which is a fairly respectable rate considering most checking accounts don’t pay any interest at all.

Citibank’s Basic Banking Package

Citibank’s Basic Banking package includes unlimited check writing and waived ATM costs, as well as a savings account with a respectable interest rate, making it our selection for the best senior rates.

Pros:

  • Checks are free and unlimited.
  • The monthly maintenance cost has been waived.
  • If necessary, automatic access to Citibank’s Identity Theft Solutions.
  • A competitive interest rate is earned on a savings account.

Cons:

  • Other banking costs are not waived.
  • There are no ATM fee refunds.

Although this is not a senior-specific account, Citibank’s Basic Banking package waives the $12 monthly cost for customers aged 62 and over. There are no additional costs removed, such as overdraft or insufficient funds fees, however Citi charges significantly less for each ($34) than most other national banks.

If you believe you have been the victim of identity theft, Citibank’s Identity Theft Solution will provide expert advice on how to identify any accounts that may have been compromised, contact Transunion to place a fraud alert on your credit report, assist you in filing a police report, and keep you updated on the status of your claim. You’ll also discover resources to assist you understand how to protect your personal information and spot potential frauds.

US Bank

US Bank is the greatest bank for older citizens.

Pros:

  • Low initial deposit
  • Check box for free
  • Rental of a safe deposit box is discounted.

Cons:

  • High qualification age
  • There will be no compensation for non-network ATM costs.

Don’t Be Misled by Senior Checking Marketing

Simply because a bank account is touted as being best for seniors does not imply that it is a better value. For example, you could locate a senior checking account with a $10 maintenance cost whereas another account has a $5 fee.
In other cases, you may discover that a checking account of any kind is unnecessary. If you must retain $1,500 in the account to qualify for a dividend, you could be better suited putting the money in a savings account or a Certificate of Deposit, which pays interest regardless of balance.

Other Checking Accounts to Think About

Even if an account isn’t designated as “senior,” it doesn’t imply seniors won’t profit from opening it. Remember that this is a list of checking accounts, which often have far lower interest rates than savings accounts. If earning a high rate of return on your deposits is your primary aim, you should look at savings accounts instead.
As of February 2022, the following are some of the finest checking accounts for seniors:

Charles Schwab Bank High Yield Investor Checking

If you currently invest with Charles Schwab, you may take advantage of the bank’s checking account with waived fees.

Ally Interest Checking

If you can’t remember the last time you visited a physical bank branch, an online bank like Ally may be a better option. Because Ally is a digital bank, it can reduce expenses while still giving a 0.1 percent interest return on accounts with less than $15,000. You will get 0.25 percent interest if you hold more than $15,000 in your account. There will be no monthly maintenance cost regardless of the amount in your account. Ally also provides access to a large network of fee-free ATMs and limited refunds for out-of-network ATMs.
So you already know Best Banks for Retirees. DO TRUNG DUONG hopes you find the best bank for your needs. More similar articles may be found here.

Avivan Wilson

Since 2009, Avivan has been actively involved in financial research. She worked as a financial advisor for a decade before transitioning to editorial. She a college degree in finance from the University of the Virginia.

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