8 Safest Places to Keep Your Money (When You Don’t Trust the Big Banks)

Raise your hand if you don’t love the idea of keeping your savings at one of the large U.S. commercial banks.

Many people feel uneasy banking with institutions that have had public scandals, offer tiny savings rates, or invest in industries that don’t align with their values. The good news? You don’t have to stay there.

Here are eight safe places to keep your money when you don’t trust big banks, plus how to figure out which is best for you.

Table of Contents

1. 1. Credit unions
2. 2. Online banks
3. 3. Local community banks
4. 4. Treasury bills, notes, and I Bonds
5. 5. Cash management accounts
6. 6. Brokerage cash sweep accounts
7. 7. Prepaid debit cards linked to FDIC-insured banks
8. 8. A home safe (for a very small amount)
9. How to choose the best place to save your money
10. Frequently asked questions about the best place to save money
    1. Is it safe to avoid big banks entirely?
    2. Where is the best place to put money to save?
    3. Are credit unions safer than banks?
    4. How much should I keep in cash at home?

1. Credit unions

Credit unions are truly one of the safest alternatives to big banks. They look and feel just like a regular bank on the outside. But since they’re not-for-profit and member-owned, any money they earn often gets passed back to you (the member) in the form of fewer fees, better interest rates, and educational services.

Most credit unions offer everything you’d need to manage your money: checking, high-yield savings, CDs, loans, and mortgages. They also come with NCUA insurance, so your deposits are insured up to $250,000 per ownership category.

• Why people choose them: Credit unions often feel just like traditional banks, but with more of a personal or local vibe.
• Best for: Anyone who wants a traditional banking setup with a more community-focused feel.

2. Online banks

If you’ve ever wondered why big banks pay pennies in interest and charge outrageous fees, the answer is overhead. Online banks don’t have branches, so they can pass those savings back to you through higher APYs and fewer fees.

Many online banks have some of the best checking accounts and high-yield savings accounts. And because they’re FDIC-insured just like traditional banks, your money is just as protected.

• Why people choose them: Better interest rates and fewer fees.
• Best for: Anyone who wants to maximize interest earnings without giving up the safety of a federally insured bank.

3. Local community banks

If you’re looking for a safe place to keep your money because big banks feel too impersonal, a community bank can be a refreshing alternative. You’ll still get FDIC insurance, along with competitive rates on savings accounts and CDs in many cases.

The biggest difference is where your money goes. Instead of funding large corporate projects, regional and community banks often use your money to stimulate the local economy.

• Why people choose them: Community banks offer all the same services as big banks but with potentially better ethics.
• Best for: Anyone who wants personal service and the comfort of keeping their money within their community.

4. Treasury bills, notes, and I Bonds

U.S. Treasuries are another safe place to store your money outside of big banks. These are loans you make to the federal government, and they’re backed by the full faith and credit of the United States. You can buy them directly through TreasuryDirect.gov, usually with low minimums.

• T-bills work well for short-term savings.
• Treasury notes range from two to 10 years.
• I Bonds help protect your money from inflation.

Note: Treasuries aren’t a replacement for a regular bank account. You still need cash you can access instantly for bills and emergencies.

• Why people choose them: Extremely low risk and a simple way to earn steady returns.
• Best for: Savers who want ultra-low-risk returns alongside (not instead of) traditional bank accounts.

5. Cash management accounts

If you like the idea of earning more on your cash but don’t necessarily want to open another traditional bank account, a cash management account might be the sweet spot. Companies like Betterment, Wealthfront, and Robinhood offer them as an easy way to hold cash, earn a competitive APY, and move money in and out instantly.

Behind the scenes, your cash is swept into partner banks. That’s how CMAs offer FDIC insurance, sometimes across multiple banks so you can get a higher combined coverage limit.

• Why people choose them: High yields, FDIC protection through partner banks, and instant access if you also invest on the platform.
• Best for: Anyone who wants their saving and investing in one place.

6. Brokerage cash sweep accounts

If you already invest through a brokerage like Fidelity, Schwab, or Vanguard, you may have a built-in place to hold your cash: a sweep account. This is where uninvested money automatically sits until you decide what to do with it.

Your cash is usually protected by SIPC insurance, which covers up to $500,000 in cash and securities if the brokerage fails. Some firms also sweep your money into partner banks, giving you FDIC coverage instead.

• Why people choose them: You could already have access to one if you invest.
• Best for: Anyone who wants a safe spot to park cash until you’re ready to buy stocks, ETFs, or other investments.

7. Prepaid debit cards linked to FDIC-insured banks

Prepaid debit cards can be another safe place to store money outside of big banks for everyday spending. Some of these cards (such as BlueBird through American Express and Serve) come with FDIC insurance.

You can then use this prepaid card much like a debit card to pay bills and withdraw cash. Just keep in mind these cards rarely earn interest and may have extra fees. They’re generally not a good spot to store your savings.

• Why people choose them: They need a card for everyday spending but don’t want to open a checking account.
• Best for: Anyone who wants an FDIC-insured way to manage spending.

8. A home safe (for a very small amount)

There’s nothing wrong with keeping a bit of cash at home for true emergencies or peace of mind. But cash kept at home can be dangerous because it isn’t insured, isn’t earning interest, and can disappear in a fire, flood, or burglary.

If you choose to keep cash at home, aim for a small amount and keep it in a highly rated fireproof safe.

• Why people choose it: Immediate access when something unexpected happens.
• Best for: People who want a tiny cushion of physical cash for true emergencies.

How to choose the best place to save your money

Once you step outside the big-bank world, it helps to think about what you want your cash to do for you.

If you’re saving for emergencies or short-term goals, online banks, credit unions, and cash management accounts could be best.

If you’re saving for something further out, you might mix in Treasuries or brokerage sweep accounts for a steadier return with low risk.

No matter what you decide, ask yourself:

• How easy is it to move money in and out?
• Are there fees?
• Is the APY competitive?
• Is the account insured (FDIC, NCUA, or SIPC)?

Frequently asked questions about the best place to save money

Is it safe to avoid big banks entirely?

Yes, it can be safe to avoid big banks as long as you keep your money in an FDIC or NCUA-insured institution. Many people choose online banks or credit unions because they often offer higher savings rates and lower fees than large national banks. What matters most is federal deposit insurance, not the size or brand of the bank.

Where is the best place to put money to save?

For most people, the best place to save money is a high-yield savings account at an online bank or credit union. These accounts usually offer better interest rates than traditional savings accounts while keeping your money accessible. Money market accounts and certificates of deposit can also make sense if you want higher returns and are comfortable with limited access to the funds.

Are credit unions safer than banks?

Credit unions are not inherently safer than banks, but they are just as secure when federally insured. Banks are insured by the FDIC, and credit unions are insured by the NCUA, both up to the same limits. Safety depends on insurance coverage and account management, not whether the institution is a bank or a credit union.

How much should I keep in cash at home?

Most financial experts recommend keeping only a small amount of cash at home, usually enough to cover a few days of basic expenses. Cash at home is not insured and can be lost due to theft, fire, or other emergencies. Larger amounts are generally safer in an insured savings account, where they are protected and easier to track.

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