Banking in 2026: Best Banks to Consider and How to Avoid the Worst Fees
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of NerdWallet's Smart Money podcast, hosts Sean Pyles and Elizabeth Ayoola tackle banking in 2026 while addressing broader economic inequality issues. (21:00) They begin with passionate hot takes on wealth inequality and the decline of pension plans, before diving into practical banking advice with banking expert Chanelle Bessette. The discussion covers how to navigate falling savings rates, avoid banking fees, and choose between digital-only and traditional banks. (18:31) The episode also explores how AI is transforming banking customer service and fraud protection, while examining the impact of reduced Consumer Financial Protection Bureau oversight on consumers. They conclude by revealing NerdWallet's 2026 Best-of Banking Awards winners and providing actionable strategies for choosing the right banking products.
• Main Theme: Empowering consumers to make informed banking decisions in 2026 while addressing systemic financial inequality and the shift from employer-provided pensions to individual retirement responsibility.Speakers
Sean Pyles
Sean Pyles is a host of NerdWallet's Smart Money podcast and a certified financial planner who focuses on helping consumers navigate personal finance decisions. He brings a social justice perspective to financial advice and advocates for systemic changes to address wealth inequality and improve financial security for all Americans.
Elizabeth Ayoola
Elizabeth Ayoola is co-host of NerdWallet's Smart Money podcast who brings international perspective to personal finance discussions, having lived in both the UK and US. She advocates for stronger social safety nets and mandatory employer-provided retirement benefits, drawing from her experience with different healthcare and financial systems.
Chanelle Bessette
Chanelle Bessette is a banking expert and "nerd" at NerdWallet who specializes in evaluating banking products and services. She leads NerdWallet's comprehensive research into banking fees, interest rates, and customer service options, analyzing hundreds of banking products to determine the best options for consumers.
Key Takeaways
Shop Around for Better Savings Rates as APYs Decline
As the Federal Reserve continues to lower benchmark interest rates, high-yield savings accounts are seeing their rates drop, but significant opportunities still exist for savers willing to compare options. (18:58) Chanelle Bessette noted that even with declining rates, high-yield savings accounts still earn about 10 times the national average interest rate. The key insight here is that banks don't all move their rates in lockstep - some banks drop rates preemptively while others maintain higher rates longer, creating opportunities for savvy consumers. This means regularly reviewing your savings account performance and being willing to switch banks can result in hundreds of dollars in additional earnings annually, especially for larger account balances.
Eliminate Banking Fees Through Strategic Account Selection
Banking fees continue to plague consumers, with ATM fees reaching all-time highs, but smart banking choices can completely eliminate these costs. (20:27) Many banks now offer ATM fee reimbursements ranging from $10-15 monthly, with some providing unlimited reimbursements. Additionally, progressive overdraft policies are becoming more common, with banks allowing overdrafts up to $50 without fees. The strategic approach involves choosing banks based on their fee structures rather than just convenience or brand recognition. This single decision can save consumers hundreds of dollars annually while improving their overall banking experience.
Leverage Multiple Banking Relationships for Maximum Benefit
Rather than limiting yourself to one bank, strategic consumers can optimize their finances by maintaining accounts at multiple institutions. (24:09) This approach allows you to access the best features from different banks - perhaps keeping a checking account at a brick-and-mortar bank for in-person services while using an online bank for high-yield savings and another bank for competitive CD rates. The key is ensuring you meet minimum balance requirements to avoid fees at each institution. This strategy maximizes your earning potential while providing access to the full spectrum of banking services you might need.
Research Banking Partners Thoroughly in Reduced Regulatory Environment
With the Consumer Financial Protection Bureau's reduced capacity due to budget cuts and staff reductions, consumers must become more proactive in vetting their banking partners. (27:04) The CFPB's budget shrunk from 12% to 6.5% of Federal Reserve expenses, significantly limiting their ability to investigate and prosecute financial institutions that harm consumers. This means conducting your own research by reading reviews, checking Reddit discussions, and googling any previous CFPB settlements or fines against potential banks becomes crucial. Taking this extra step can help you avoid problematic institutions before they cause financial damage to your accounts.
Focus on Core Banking Features That Match Your Lifestyle
When choosing a bank, prioritize features that align with your specific financial habits and needs rather than getting overwhelmed by extensive feature lists. (31:18) The two non-negotiable features should always be high interest rates and no fees, but beyond that, consider your personal circumstances. For example, if you're a bartender handling lots of cash, prioritize banks with extensive ATM networks for cash deposits. If you're a renter paying by check, look for free bill pay services. This targeted approach ensures you get maximum value from features you'll actually use rather than paying for services that don't benefit your situation.
Statistics & Facts
- High-yield savings accounts earn about 10 times the national average interest rate, even as rates decline due to Federal Reserve cuts. (19:13) This statistic was provided by Chanelle Bessette to emphasize that despite falling rates, significant earning opportunities still exist for savers who choose the right accounts.
- Only 15% of private industry workers had access to defined benefit plans (pensions) in March 2024, while 70% had access to defined contribution plans like 401(k)s. (09:02) Elizabeth Ayoola shared this data to illustrate the dramatic shift in retirement responsibility from employers to employees, compared to 44% who had pension access in 1974.
- The Consumer Financial Protection Bureau's budget was cut from 12% to 6.5% of Federal Reserve expenses by July 2025. (26:26) This reduction significantly limits the agency's ability to protect consumers from financial institution fraud and abuse, placing greater responsibility on individuals to research and vet their banking partners.
