Liberty Bank Review: Checking, Savings and CDs

Liberty Banks offers a forgiving approach to overdrafts, but its interest rates are low.

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Overall bank rating

Liberty Bank & Trust Company
  • Checking

  • Savings

  • CD rates

  • Banking experience

  • Overdraft fees

3.0

NerdWallet rating 

The bottom line:

Liberty Bank is a Black-owned regional institution with branches sprinkled throughout the South and Midwest. Its rates are better than those at large brick-and-mortar national banks but aren't competitive with online institutions. But its overdraft policy is much cheaper and less punitive than what you'll find at many banks.

Best for: Those who prefer to bank with a Black-owned institution, like banking online or live near the bank's branches and ATMs in the South and Midwest.

Pros

  • Well-rated mobile apps.
  • CD interest can be paid monthly, quarterly, semiannually or annually.
  • Low overdraft fee.

Cons

  • Low interest rates on savings and CDs.
  • Only two free withdrawals from savings per statement cycle.

Full review

Liberty Bank Personal Checking Account
Liberty Bank Personal Checking Account

Checking

Member FDIC

2.5

/5
 NerdWallet rating 
Monthly fee
$10.00
Waived with $500 minimum balance
Overdraft star rating
4.5/5

Liberty Bank’s Personal Checking Account requires a $50 minimum opening deposit. In addition, there is a monthly fee of $10, but you can waive it by keeping your daily balance at or above $500. If you don’t opt into e-statements, you’ll also incur a $12.50 fee for having a paper statement mailed to you.

The account could be useful if you write a lot of checks: It comes with unlimited check writing, and monthly statements include check images.

» Compare more options: See our list of the best checking accounts

Liberty Bank Personal Savings
Liberty Bank Personal Savings

Savings

Member FDIC

4.0

/5
 NerdWallet rating 
APY
0.35%
With $50 min. balance for APY

You can open a Personal Savings Account with $50 and avoid the $4 monthly fee by maintaining a balance of at least $200. The account pays 0.35% APY on any balance — that’s more than you’ll find at many large banks, but you can find much better rates elsewhere.

Another downside to this savings account is that only two withdrawals are free per statement period; each withdrawal after that costs $2. Most savings accounts allow at least six free withdrawals per period and some don’t have any limits.

» Want to shop around for the best rates? Check out our list of the best savings accounts

Liberty Bank CD
Liberty Bank CD

CD

Member FDIC

2.0

/5
 NerdWallet rating 
1-year APY
0.25%
3-year APY
0.35%
5-year APY
0.45%
Minimum deposit
$1,000

Liberty Bank requires a deposit of at least $1,000 to open a CD. Terms range from three months to five years. As with the bank’s savings account, rates for CDs are better than what you’ll find at one of the bigger brick-and-mortar banks, but other financial institutions offer much more competitive rates. Unlike checking and savings accounts, CDs can’t be opened online.

One unique feature of the Liberty Bank CDs is that you can choose to have the interest paid monthly, quarterly, semiannually or annually. You can also choose to receive the interest payment by check or as a deposit to another account at the bank.

» Find out who has the best APYs: See our list of this month’s best CDs

Banking experience

3.0

NerdWallet rating 

Interest rates aren’t available online, so you’ll have to call or go to a branch to find out what they are. The bank has more than a dozen branches sprinkled throughout a few states: Alabama, Illinois, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri and Tennessee. Liberty Bank ATMs are available only in some of those states, though. The bank charges a $2 fee for using an out-of-network ATM, on top of whatever fee the ATM owner may change.

Customer service is available by phone on weekdays, and the bank doesn’t offer extended hours. You can reach a customer service representative only from 9 a.m. to 5 p.m. CST. The bank’s mobile apps are rated well.

» Interested in more Black-owned financial institutions? Check out our list of Black-owned banks and credit unions

Overdraft fees

4.5

NerdWallet rating 

Liberty Bank charges an overdraft fee, but it’s not severe: The bank charges $1.50 if you overdraw your account, which is charged once daily. It doesn’t offer overdraft protection, but you can manually transfer money from a linked deposit account or personal line of credit to bring your account balance back up. There’s no fee for this (unless it’s from a Personal Savings Account and you’ve already had more than two withdrawals or transfers that month).

» Tend to overdraw your account? Check out our list of the best banks for overdrafts

Liberty Bank Personal Checking Account
Liberty Bank Personal Checking Account

Checking

Member FDIC

2.5

/5
 NerdWallet rating 
Monthly fee
$10.00
Waived with $500 minimum balance
Overdraft star rating
4.5/5

Liberty Bank’s Personal Checking Account requires a $50 minimum opening deposit. In addition, there is a monthly fee of $10, but you can waive it by keeping your daily balance at or above $500. If you don’t opt into e-statements, you’ll also incur a $12.50 fee for having a paper statement mailed to you.

The account could be useful if you write a lot of checks: It comes with unlimited check writing, and monthly statements include check images.

» Compare more options: See our list of the best checking accounts

Methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.