We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
Black-Owned Banks and Credit Unions: Where to Find Them
Black-owned banks and credit unions provide a crucial service to Black communities.
Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a focus on certificates of deposit and other banking-related topics. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Berkeley, California.
Sara Clarke is a Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She managed projects such as the U.S. News education rankings and the Best States rankings. Sara has appeared on SiriusXM Business Radio and iHeartMedia’s WHO Newsradio and has been quoted in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based near Washington, D.C.
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The typical white family has eight times the wealth of the typical Black family, according to a 2019 Federal Reserve survey. This gap exists in part because of past U.S. policies as well as banking industry practices, which historically excluded Black Americans from access to credit and banking services.[1]
Black-owned banks — and their not-for-profit equivalent, credit unions — are intentional about helping the Black community. Most are community development financial institutions, which provide financial services in underserved and low- to moderate-income areas. (Learn more about CDFIs.) These banks connect those who have been denied accounts in the past with banking services[2] and lend to Black-owned small businesses and Black homeowners, who are both denied loans more often than white borrowers.[3]
A Black-owned bank is a for-profit banking institution in which the majority of stockholders or members of the board of directors are African American. The bank tends to serve a mostly Black community, but this doesn’t mean non-Black people or firms can’t join. In fact, some companies, such as Netflix, have deposited funds in Black-owned banks as a way to support Black communities.
What is a Black-owned credit union?
A Black-owned credit union is a not-for-profit banking institution in which a majority of its current members, its board of directors and the community it serves are African American. Membership can be limited to a certain city or group, such as members of a predominantly Black church or employees at a historically Black college or university.
Can allies join a Black-owned bank?
Yes, joining a Black-owned bank can be a solid way to support its mission. If you’re interested in a Black-owned credit union, check its membership requirements; like other credit unions, some may restrict by geography or other factors.
What is a Black-owned bank?
A Black-owned bank is a for-profit banking institution in which the majority of stockholders or members of the board of directors are African American. The bank tends to serve a mostly Black community, but this doesn’t mean non-Black people or firms can’t join. In fact, some companies, such as Netflix, have deposited funds in Black-owned banks as a way to support Black communities.
What is a Black-owned credit union?
A Black-owned credit union is a not-for-profit banking institution in which a majority of its current members, its board of directors and the community it serves are African American. Membership can be limited to a certain city or group, such as members of a predominantly Black church or employees at a historically Black college or university.
Can allies join a Black-owned bank?
Yes, joining a Black-owned bank can be a solid way to support its mission. If you’re interested in a Black-owned credit union, check its membership requirements; like other credit unions, some may restrict by geography or other factors.
"We’re making Black America a better place, and by doing so, making all America a better place,” says Kevin Cohee, CEO and chairman of OneUnited Bank, one of the largest Black-owned banks in the U.S.
List of Black-owned banks and credit unions
Here are some of the Black-owned financial institutions, and a few online-only platforms that partner with banks, currently operating in the U.S.
Don’t see your Black-owned credit union here? Let us know.
Note: This list is not exhaustive, due in part to the different processes for banks and credit unions to be recognized as Black-owned. For banks, Black-owned means the institution is owned by Black stockholders, and the Federal Deposit Insurance Corporation tracks eligible banks. All 19 Black-owned banks are represented as of the most recent list, the first quarter of 2022.
For credit unions, members are the owners, and the National Credit Union Administration relies on credit unions to self-report as Black-owned. Not all credit unions from NCUA’s list could be verified as Black-owned. You can see the full list of Black-owned credit unions on the NCUA website.[4]
4.20%SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.20% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 04/24/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
4.75%Annual Percentage Yield (APY) is accurate as of 05/09/2023. APY is variable and subject to change at any time without notice. No monthly service charge. No minimum balance requirement. Must fund with 15 days of opening account.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
4.50%Annual percentage yield (variable) is as of 5/8/23. 5.00% APY with a $75K deposit or 4.75% APY with a $25K deposit. New customers only with qualifying deposit. Terms apply.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
3.30%Your annual percentage yield can be as high as 3.30% based on the following combined rate rewards: direct deposits (not including intra-bank transfers from another account) totaling $1,500 or more each month will earn 0.40%. A qualifying direct deposit is required for the remaining interest rate qualifications to apply. Ten (10) point-of-sale transactions per month using your Rewards Checking Visa® Debit Card for normal everyday purchases with a minimum of $3 per transaction, or enrolling in Account Aggregation/Personal Finance Manager (PFM) will earn 0.30%; maintaining an average daily balance of at least $2,500 per month in an Axos Self Directed Trading Invest account will earn 1.00%; maintaining an average daily balance of at least $2,500 a month in an Axos Managed Portfolio Invest account will earn 1.00%; and making a monthly payment to an open Axos Bank consumer loan (commercial and business loans excluded) via transfer from your Rewards Checking account will earn a maximum of 0.60%.
Monthly fee
$0
Money market accounts pay rates similar to savings accounts and have some checking features.
Money market accounts pay rates similar to savings accounts and have some checking features.
1. Black Americans historically have been blocked from government programs that boosted wealth for white Americans. For example, the Federal Housing Administration refused to provide government-backed mortgages to Black Americans for decades. This encouraged the mostly white-owned banks to perpetuate a racist policy of redlining, or denying or limiting financial services based on race or ethnicity. Lending practices have shifted over time, but racial discrimination remains. As recently as the past decade, some of the biggest U.S. banks settled lawsuits for charging Black borrowers higher mortgage rates than white borrowers with similar credit profiles.
2. About 14% of Black households don’t have bank accounts, compared with 2.5% of white households, according to a 2019 survey by the Federal Deposit Insurance Corporation.
3. Black-owned small businesses applied for bank financing slightly more than other firms, but less than 47% of these applications got full funding, compared with 75% of firms with white owners, according to a 2017 Federal Reserve survey of small business credit. About 16% of Black borrowers are denied mortgages, compared with 6% of white borrowers, according to the 2019 Consumer Financial Protection Bureau report on the mortgage market.
