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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.
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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.
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]
4.60%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
5.50%*Base annual percentage yield (variable) is 4.75% as of 7/31/23. 5.50% APY reflects a .75% boost available as a special offer with qualifying deposit. Terms apply. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through clients’ brokerage accounts at Betterment Securities.
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.
5.50%All Bread Savings APYs are accurate as of 12/7/2023. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawals on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time.
0.50%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
