The Best Black-Owned Banks
Over and over again in the United States, the Black community has been stripped of wealth through policies, scandals, and even massacres. This has created and perpetuated a racial wealth gap. It will take 228 years for Black families to amass as much wealth as white families if current policies stay in place.
One of the institutions that have played a major role in the racial wealth gap and the United States’ racist past is banks. Due to racial discrimination, the Black community hasn’t had access to banking products and services at all or in the same way that white folx have.
What does that mean? Many banks didn’t accept Black customers and still today many banks charge Black customers higher interest rates on loans and mortgages, even when their profile is exactly the same as a white customer.
Racial discrimination happens so frequently that there is a hashtag dedicated to “Banking While Black” describing instances of tellers calling 911 for a customer wanting to cash a check, bank employees using racial slurs, and Black customers being denied service.
Even the structure of banking products continues to perpetuate the racial wealth gap. Those with less in their checking and savings accounts are required to pay monthly fees, earn lower interest, and often have to resort to expensive financial products.
Black-owned banks were created to serve the Black community and are at least 51% majority Black-owned.
Why switch to a Black-owned bank?
In addition to better serving the Black community, many Black-owned banks are actively working to close the racial wealth gap. They play an important role in fighting systemic racism and discrimination in the financial sector.
Many are certified as Community Development Financial Institutions (CDFI). Some provide free financial literacy resources online and via in-person events, support minority-owned businesses and charitable organizations, and have created innovative products that specifically help the Black community overcome systemic hurdles.
By switching to a Black-owned bank, you are supporting that mission and giving the bank a better chance to thrive and grow. You are taking a stand for financial inclusion and equality.
Which Black-owned bank is right for me?
If you’re ready to make the switch but need help finding the best one for you, I’ve got you covered. I did the research on Black-owned banks and have outlined my findings for you below. Before putting a bank on this list, I called them up and spoke (anonymously) with a customer service rep to confirm all the details I share.
I also include my minimum requirements for being included on this list, as well as some innovative products and resources these banks offer.
It’s important to note that there are some amazing local Black-owned banks that require you to open an account in person or to be a resident of that particular state. This list only includes banks that offer banking completely online, but I recommend researching local Black-owned banks in your area as well.
I’d love to hear about your experience working with any of these banks. If I’ve left any off this list that meet the stated criteria, let me know!
First, here are the minimum requirements:
Majority (51%+) Black-owned
Clear commitment to the Black community
Low fees and no hidden fees (and no crazy hoops to jump through in order to benefit from the low / no fees)
FDIC insured up to $250,000
No or low minimum balances
Ability to bank all online (most have physical branches as well)
Customer support
Mobile app available
Some bonus criteria:
Business accounts available
Savings accounts with competitive interest rates
Ability to open multiple accounts (for multiple goals)
Other info I include:
For those who prefer to bank in person, I include physical locations
Fun other features that might pique your interest
Here are my picks for the best Black-owned banks:
OUR TOP PICKS: ONE UNITED
Overview:
First Black internet bank and largest Black bank in the country
Certified CDFI (Community Development Financial Institution)
Committed to closing the racial wealth gap
Financial literacy through free events and resources
Offers affordable financial products tailored to needs of urban communities like UNITY Savings, UNITY Visa secured credit card to rebuild credit, and U2 E-Checking (for those with ChexSystems records)
Transparent fees and rates - offer an ‘Online Truth in Savings Disclosure’
For you:
Checking account options:
BankBlack Checking: no monthly fee with direct deposit and 10 debit transactions per month
U2 E-Checking: free account for people with ChexSystems records
Savings account options:
BankBlack Savings (0.1% interest rate* with $200+ in account)
Unity Gold E-CD (0.15% interest rate* with $1,000+ in account)
No monthly fee on either account if you have a direct deposit set up
Locations: All online; physical locations in Los Angeles, Boston, and Miami
ATMs: Over 33,000 surcharge-free ATMs via the Money Pass or SUM networks. Find locations here.
Other features:
CardSwap program where you can update payment info for all subscriptions at once
BankBlack Early Pay program to receive your paycheck 2 days early (for no fees)
Pop Money service where you can send and receive money digitally
Very highly rated mobile app
Easy to use website
Business accounts available
OUR TOP PICKS: HOPE FEDERAL CREDIT UNION
Overview:
Certified CDFI (Community Development Financial Institution)
Mission is to strengthen communities, build assets, and improve lives in economically distressed areas of the Deep South by providing access to high quality financial products and related services
Strong commitment to community development via healthcare facilities and school financing, healthy food financing, affordable housing, and much more (see 2019 impact report)
61% of businesses and nonprofits funded by Hope in 2019 were owned and led by women and people of color
Hope Policy Institute (the policy division of Hope) influences policies that affect the allocation of resources and facilitates an environment to ensure that all people prosper
Provides resources to immigrants and allies
For you:
Checking account options:
HOPE Rewards Checking Account has no monthly fee and earns 0.1% interest if you do nothing and up to 3.01% interest if you logon to the mobile app once, make 12 debit transactions, receive e-statements and have a direct deposit or automatic payment set up to the account
Free student checking account available
Savings account options:
Free savings accounts available with interest rates ranging from 0.25% - 1.0%*
Locations: All online; physical locations in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee
ATMs: HOPE rewards checking receives $20 in ATM reimbursements. You can also get free Deposits and withdrawals at more than 5,300 shared branching locations nationwide
Other features:
Ability to invest in local communities through Transformational Deposits
Very highly rated mobile app
Easy to use website
Business accounts available
CITIZENS TRUST
Overview:
Founded in 1921 with locations in Georgia and Alabama
Certified CDFI (Community Development Financial Institution)
Sponsors events and organizations that relate to community well-being, business development, and financial empowerment in their community
Launched free education program to educate young adults about budgeting, money management, and building wealth
Offers specialized checking accounts for students and children
For you:
Checking account options:
Many checking account options with no fee if you keep a minimum balance and set up direct deposit
Collegiate checking account for students completely free for five years with $25 minimum to open
Savings account options:
Many savings account options with interest rates ranging from 0.05% - 0.10%*
Locations: All online; physical locations in Georgia and Alabama
ATMs: Local ATMs in Georgia and Alabama
Other features:
Very highly rated mobile app
No fee savings accounts for children and students
No fee business accounts available
FIRST INDEPENDENCE BANK
Overview:
Founded in 1970 and is the only African American-owned bank headquartered in Michigan
Certified CDFI (Community Development Financial Institution)
Promotes the economic viability of under-served communities
Sponsors events and organizations that relate to community well-being, business development, and financial empowerment in their community
Launched free education program to educate young adults about budgeting, money management, and building wealth
For you:
Checking account options:
Checking account options with $2 - 5 in monthly service fees
Savings account options:
Free savings account options with a balance above $200 (interest rate of 0.2%*)
Locations: All online; physical locations in Detroit and Clinton Township, Michigan
ATMs: Use any nationwide FIB, Fifth Third, TCF or Chemical Bank ATM surcharge free
Other features:
Popmoney service where you can send and receive money digitally
BaZing Fuel for discounts on gas
Highly rated mobile app
No fee business accounts available
When waiting for customer service, you’re told how many people are ahead of you
INDUSTRIAL BANK
Overview
Founded in 1934
Locations in Washington DC, Maryland, New Jersey, and New York
Certified NCIF (National Community Investment Fund)
Mission to promote the financial and economic empowerment of their diverse community
“Money Made Here Stays Here” initiative where money deposited with the bank is invested and lended locally
For you:
Checking account options:
Multiple checking account options
“Go Green Checking” account free with $100 minimum daily balance, direct deposit, and e-statements
Student Checking account free with $100 minimum daily balance (student ID required)
Savings account options:
Free savings account options with interest rates currently ranging from 0.1% - 0.75%*
Locations: All online; Washington DC, Maryland, New Jersey, and New York
ATMs: Local ATMs in Washington DC and Maryland
Other features:
Kasasa Protect for data, fraud, and identity protection
Debit Card Reward Program
Highly rated mobile app
Business accounts available
* Interest rates as of 8/17/20 and vary over time.