These Are The Best Cities To Bank In The US

For instance, a Pew report revealed a median monthly fee for a checking account of $10 (with a $1,500 balance required to waive the fee) in states like Minnesota and Montana. However, Massachusetts residents pay a median of $15 per month and need $6,000 to waive it.

To determine which cities are the best for consumer banking, NerdWallet compiled data on 6 different factors for the 100 most populated cities in the United States.

Click here to see the best cities to bank in the U.S. >

These factors include:

• Are local banks and credit unions stable? While the FDIC or NCUA for insures balances up to $250,000 per depositor per institution, Americans still want to know that their bank or credit union is here to stay. NerdWallet calculated the number of bank failures and closed credit union per capita in each city from 2009 through the present.

• Do consumers have access to a diverse range of banking options? A small handful of banks can dominate the landscape in some U.S. regions. In fact, it is not uncommon for just 2 banks to hold upwards of 60% of bank deposits in certain states. NerdWallet sought variety in banking options by determining the number of unique banks and credit unions per capita available in each city.

• Do consumers have easy access to a local branch? A Federal Reserve consumer survey found that 46% of U.S. adults chose an institution for their primary checking account due to branch locations. To estimate the convenience, NerdWallet calculated the total number of overall bank or credit union branch locations per capita within each city.

• What will the average savings account earn in interest? In efforts to revive the U.S. economy, the Federal Reserve has voiced intent to keep interest rates low until unemployment improves, but such a policy can have adverse effects on savers. To determine where consumers are earning the most interest on their deposits, NerdWallet analyzed rates data collected from over 3,600 banks and credit unions to determine the average savings account yield in each city.

• Do banks charge excessive fees? As mentioned above, Americans are often faced with paying hefty fees for banking products and services. NerdWallet used Pew’s report on the median checking account fee in every state to proxy the severity of bank fees in each city.

• What proportion of the population is “fully banked”? NerdWallet assessed the percentage of American households in each metro area that are fully banked – those that have a bank account of some kind and have not recently relied on alternative financial services (such as payday lenders, pawn shops, etc.). Such services are often laden with fees, charge exorbitant interest rates and generally offer unfriendly terms and conditions for consumers.

1. Cincinnati, OH

Cincinnati maintains the highest number of bank or credit union branches per capita, with over 120 branch locations for every 100,000 residents.

Not surprisingly, the city also has a very diverse banking landscape. Consumers can choose to bank with anyone from the behemoth Chase to local institutions like First Safety Bank.

Despite the variety of options, no banks or credit unions based in Cincinnati have failed since 2009. Finally, a median checking account fee of $10 in Ohio (compared to a national median of $12) suggests lower consumer costs for basic banking services.

2. Pittsburgh, PA

Consumers in Pittsburgh have the benefit of a broad selection when it comes to their primary financial institution. NerdWallet calculated 105 branch locations per 100,000 residents (from nearly 80 different banks or credit unions) within the “Steel City” limits.

Unfortunately, the added banking industry competition has not helped to cap some fees. The median checking account fee in Pennsylvania, at $14 per month, was found to be one of the highest.

However, institutions like Pittsburgh Central Federal Credit Union or United American Savings Bank are among the local options with free checking accounts. Pittsburgh can also claim an above average percentage of fully banked households, at 74.1%.

3. Madison, WI

The capital of Wisconsin should be proud of the high rate of banking participation among its population. 85.5% of all metro area households are considered fully banked by the FDIC, making this city the most successful in that category. 

The fact that Madison has often been named among the most educated cities is surely a large contributing factor. In fact, some institutions like UW Credit Union are dedicated to serving the highly educated population – membership is generally available to those associated with the University of Wisconsin system. 

Furthermore, Madison has seen no bank or credit union failures since 2009, and consumers have the benefit of lower than average fees. The median checking account fee in Wisconsin, as measured by a Pew report is just $10 per month, compared to a national median of $12.

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