The number of Black-owned banks has been declining over the years, representing less than 1% of all FDIC-insured banks.
Currently there are only 21 federally certified Black-owned banks in the United States. Most of them offer a full range of financial products including checking, savings, loans, insurance and investment products, but only a few offer high-yield savings accounts.
Black Owned Banks With High Yield Savings
Carver Federal Savings Bank
Carver Federal Savings Bank is one of the only Black owned banks with high yield savings accounts that offer competitive rates.
The more you deposit, the higher your annual percentage yield:
- Earn up to 4.70% APY on account balances over $250,000
- Earn up to 4.60% APY on account balances of $100,000-$250,000
- Earn up to 4.50% APY on account balances of $5,000-$$100,000
Features:
- Interest compounds daily and is deposited into account monthly
- Complimentary e-statements
- Visa Debit Card
- Online Banking and Mobile Banking
- Free ATMs nationwide with J.P. Morgan, Wells Fargo and Allpoint
- Deposits are insured by the FDIC up to $250,000 per individual and $500,000 per joint account.
Carver Federal Savings Bank was founded in 1948 to serve Black communities and is still the largest Black-owned and operated bank in the United States. It's headquartered in Harlem, New York, and has a strong focus on serving low- to moderate-income neighborhoods.
The Harbor Bank
The Harbor Bank offers a high yield Certificate of Deposit (CD) account that is competitive with many banks.
Customers can earn 3.50% APY on certificate deposits ranging from 24 to 29 months.
Features:
- Flexible Terms
- Fixed Rate of Return (typically higher rates with longer terms)
- FDIC Insured up to $250,000
- CDARS Available (Certificate of Deposit Account Registry Service)
Harbor Bank of Maryland is the only Black owned and managed commercial bank in the state of Maryland. It was co-founded by Joseph Haskins Jr. in 1982, to provide financial services to underserved communities. They offer a variety of financial products and services, including:
- Personal Banking: Checking accounts, savings accounts, certificates of deposit (CDs), individual retirement accounts (IRAs), credit cards, debit cards, mortgage loans, personal loans, and home improvement loans.
- Business Banking: Business checking accounts, business savings accounts, business loans, and merchant services.
- Other Services: Online banking, mobile banking, bill pay, remote deposit capture, and cash management services.
M&F Bank
M&F Bank offers one of the best high yield checking account that easily knocks other banks out the park when it comes to interest bearing.
Customers can earn 3.00% APY on on balances up to $10,000 on the DASH Checking Account by meeting the following requirements:
- Open your account with a minimum deposit of $50
- Conduct a minimum of 15 debit card transactions that total at least $350 per statement cycle (transactions must post and clear during the statement cycle)
- Login at least once to online/mobile banking per statement cycle
- Receive an e-statement
- Complete at least $500 in Direct Deposits per statement cycle
Features:
- $50 minimum opening
- No monthly maintenance fees
- Free access to 44,000 ATMs nationwide
- FDIC Insured up to $250,000
Harbor Bank of Maryland is the only Black owned and managed commercial bank in the state of Maryland. It was co-founded by Joseph Haskins Jr. in 1982, to provide financial services to underserved communities. They offer a variety of financial products and services, including:
Final takeaway
Supporting Black-owned banks is a way to address historical injustices, promote economic empowerment, build community wealth, and foster a more inclusive and equitable financial system.
Black communities have historically faced discrimination in banking, including redlining and denial of loans. Establishing a banking relationship with Black-owned banks helps to counteract these systemic inequities and provides financial resources to communities that have been underserved.
