banking

Best Banks for Retirees

With these banks, retirees benefit from low or no minimum-balance requirements, free checks and paper statements, and access to investment and wealth-management services.

Best: TD Bank

www.td.com

Why it won: TD offers a strong, low-minimum checking account for retirees, plus fee breaks on certain savings accounts. And those who prefer in-person service benefit from a large branch footprint on the East Coast.

Standout account: 60 Plus Checking has well-appointed features for retirees.

Where it is: More than 1,100 branches in 15 eastern states and Washington, D.C. Terms and rates are for Delaware.

TD’s 60 Plus Checking has a reasonable, $250 minimum-balance requirement to waive the $10 monthly fee, and it provides free standard checks, cashier’s checks, money orders and paper statements. If you’re 62 or older, you pay no monthly fee for TD’s Simple Savings account (for more, see the “Best National Banks” silver medalist) or Growth Money Market account, which yields as much as 0.03% on a balance of $25,000 or more if you have a recurring transfer of at least $50 into the account (standard rate: 0.01% to 0.02%). With Choice Promotional CDs, rates were recently 0.05% on all terms. Step-Rate CDs increase the yield each year—for example, a three-year certificate offers 0.05% in year one, 0.1% in year two and 0.15% in year three. At each account anniversary, you can make a full or partial withdrawal and pay no early-withdrawal penalty.

TD offers a suite of wealth- and investment-management options, including brokerage services through TD Ameritrade, annuities, retirement planning, and wealth management through TD Wealth Private Client Group (minimum $750,000 in investable assets), which comes with a relationship manager as well as help from wealth strategists, investment advisers and other professionals.

Runner-up: Charles Schwab Bank

www.schwab.com/bank

Why it won: Retirees who are game to bank online can take advantage of minimal checking account fees and access to Schwab’s investment and advisory services.

Standout account: The free High Yield Investor Checking account offers lots of freebies and is especially well-suited for travelers.

Schwab’s online banking arm offers a gem in the High Yield Investor Checking account. It has no monthly fee or minimum-balance requirement, yields 0.03%, and offers free standard checks, paper statements, stop payments, overdraft transfers and incoming domestic wire transfers. Two benefits that travelers will appreciate: unlimited refunds of domestic and international out-of-network ATM fees and no foreign-transaction fees on purchases abroad. You must also open a Schwab One brokerage account, which has no balance requirement or maintenance fees.

Schwab’s free High Yield Investor Savings account yields 0.05%, and you can make ATM withdrawals from it with a debit card (all withdrawal fees are reimbursed). Schwab’s investment services run the gamut from brokerage accounts to wealth management.

Continue Reading

Most Popular

25 Best Kirkland Products You Should Buy at Costco
Smart Buying

25 Best Kirkland Products You Should Buy at Costco

Many of warehouse club Costco's store-branded Kirkland Signature items get high marks for quality and value. Check out our picks.
July 21, 2021
Warning: You May Have to Pay Back Your Monthly Child Tax Credit Payments
Tax Breaks

Warning: You May Have to Pay Back Your Monthly Child Tax Credit Payments

Unlike stimulus checks, you might have to repay your monthly child tax credit payments if you get too much money from the IRS.
July 16, 2021
Will Monthly Child Tax Credit Payments Lower Your Tax Refund or Raise Your Tax Bill?
Tax Breaks

Will Monthly Child Tax Credit Payments Lower Your Tax Refund or Raise Your Tax Bill?

Everyone loves receiving large sums of money from Uncle Sam. But people who take advance child tax payments may take a hit on next year's tax refund.
July 31, 2021

Recommended

Long-Term Rates Will Edge Higher
Economic Forecasts

Long-Term Rates Will Edge Higher

Yields on bank savings accounts will stay low. Home mortgage rates will remain affordable.
July 30, 2021
Fintech: The Bank Disrupters
Financial Planning

Fintech: The Bank Disrupters

Fintechs offer mostly free accounts with tantalizing yields and slick features, but don’t expect much hand-holding.
July 25, 2021
Bank-Loan Funds Are in a Sweet Spot
Becoming an Investor

Bank-Loan Funds Are in a Sweet Spot

They do well when rates are rising and the economy is strong.
June 24, 2021
The Best Bank for You
Making Your Money Last

The Best Bank for You

Check out our list of the best candidates for your next financial institution based on interest rates, fees and other features.
June 22, 2021