Contact us at contact@bestcashcow.com for more information.The editors of BestCashCow today release the site's list of the five safest banks in each of the 50 States in the country. We’ve compiled the list based on the financial information as of 9/30/2017, the most current information available.

(Please note that Hawaii, Idaho, Nevada, New Hampshire, Oregon, Rhode Island and Vermont each have fewer than 20 registered banks, we have limited our recognition in those States to the two strongest. There are so few registered banks in the District of Columbia that we have not included it in this study).

The list is for informational purposes only. It is not intended to be an endorsement of any bank on the list, or to recommend a deposit or a lending product of one of the banks or any one of the credit union listed. Likewise, no negative inference should be made regarding any bank's omission from the list.

You can see the full list of banks in your State at the bottom of this page.

You can see the full list of credit unions in your State here.

Our Methodology

All credit analysts have their own ways to determine and measure the health of a financial institution. For purposes of this exercise, BestCashCow has chosen to rely on two distinct measures designed to zero in on the safety aspect, as opposed to profitability.

Our first measure is the Texas Ratio. The Texas Ratio compares the outstanding volume of non-performing assets and loans at risk with the amount a bank has on hand to cover any losses (tangible capital equity plus loss reserves). A bank with a ratio that approaches 1-to-1 or 100% is considered to be at risk. Fortunately, the average Texas ratio among US banks stood at 8.32% as of September 30, 2017. We’re looked for banks that are still safer than the average. Therefore, in determining the safest banks in each State in the US, half of our determination is based on how much lower the bank’s Texas ratio is from the average.

You can see the Texas ratio of any bank by going that bank’s bank page and clicking on the “Financial Details” tab.

Our second measure is capitalization. Capitalization measures how much equity capital a bank has to underpin loans and other assets on its balance sheet. The higher the capitalization number the more secure a bank is considered. The average capitalization ratio among US banks as of September 30, 2017 was 12.21%. Half of our determination is based on how each bank measures in comparison to that average.

You can also see any bank’s capitalization on the Financial Details tab on their BestCashCow bank page.

For purposes of determining how safe a bank is, we have purposefully refrained from using any determination of size or profitability of any bank. This list does not have a minimum or a maximum size. We have not looked at return on equity or at any sort of balance sheet analysis. A shareholder or an investor would be more concerned with these indicators and should not draw any conclusions from a bank’s inclusion – or exclusion - herein.

The Complete List

Alabama - First Progressive Bank, The Citizens Bank of Winfield, BankSouth, The Farmers and Merchants Bank, Valley State Bank

Alaska - Mt. McKinley Bank, First National Bank of Alaska, First Bank, Denali State Bank, Northrim Bank

Arizona - Republic Bank of Arizona, West Valley National Bank, Pinnacle Bank, Western Alliance Bank, BCN National Bank

Arkansas - The First National Bank of Izard County, De Witt Bank and Trust Company, Logan County Bank, First Security Bank, First Arkansas Bank and Trust

California - Rancho Santa Fe Thrift and Loan Association, California Pacific Bank, First Credit Bank, Community Commerce Bank, EverTrust Bank

Colorado - 5Star Bank, First Colorado National Bank, The Farmers State Bank of Brush, Firzt Pioneer National Bank, City Banks

Connecticut - Stafford Savings Bank, The Torrington Savings Bank, Liberty Bank, Darier Rowayton Bank, Essex Savings Bank

Delaware - BNY Mellon Trust of Delaware, Chase Bank, Wilmington Trust, Santander Bank, Applied Bank

Florida - Grove Bank & Trust, TotalBank, Peoples Bank of Graceville, Fidelity Bank of Florida, Florida Business Bank

Georgia - West Central Georgia Bank, Elberton Federal Savings and Loans, Newton Federal Bank, American Pride Bank, The First National Bank of Waynesboro

Hawaii - First Hawaiian Bank, Ohana Pacific Bank

Idaho - Idaho Trust Bank, Farmers Bank

Illinois - Collinsville Building and Loan Association, The Poplar Grove State Bank, Reynolds State Bank, Streator Home Savings Bank, Liberty Bank for Savings

Indiana - Peoples Savings and Loan Association of Monticello Indiana, The Morris Plan Company of Terre Haute, Farmers and Mechanics Federal Savings Bank, Peoples Trust and Savings Bank, First State Bank of Porter

Iowa - Pocahontas State Bank, Citizens State Bank, First State Bank of Colfax, American Savings Bank, Farmers Trust & Savings Bank

Kansas - Farmers and Drovers Bank, FNB Washington, CBW Bank, The First National Bank of Dighton, Home Savings Bank

Kentucky - Jackson County Bank, First Federal Savings and Loan Association, Blue Grass Savings and Loan Association, Kentucky Farmers Bank Corporation, Dixon Bank

Louisiana - Union Savings and Loan Association, Rayne Building and Loan Association, First National Bank on Benton, Bank of Gueydan, Fifth District Savings Bank

Maine - Franklin Savings Bank, Norway Savings Bank, Kennebec Savings Bank, Bath Savings Institution, Sanford Institution for Savings

Maryland - Homewood Federal Savings Bank, Calvin B. Taylor Banking Company of Berlin, Maryland, EagleBank, The Columbia Bank, Rosedale Federal Savings and Loan Association

Massachusetts - Cape Ann Savings Bank, Walpole Co-operative Bank, Canton Co-operative Bank, North Cambridge, MutualOne Bank

Michigan - Dearborn Federal Savings Bank, First State Bank of Decatur, Eaton Federal Savings Bank, The Port Austin State Bank, Freeland State Bank

Minnesota - The First National Bank of Fairfax, The First National Bank of McIntosh, State Bank of Wheaton, Marshall County State Bank, The Wanda State Bank

Mississippi - First Federal Savings and Loan Association. The Jefferson Bank, Resonant Bank, First National Bank of Clarksdale. First State Bank

Missouri - Central Federal Savings and Loan Association of Rolla, Mississippi County Savings and Loan Association, The Mercantile Bank of Louisiana, Missouri, West Plains Savings and Loan Association, Central Bank of Kansas City

Montana - The First State Bank of Shelby, The Yellowstone Bank, Pioneer Federal Savings and Loan Association, 1^st Bank, Three Rivers Bank of Montana

Nebraska - Chambers State Bank, Bank of Lewellen, The First National Bank of Johnson, Adams State Bank, Minden Exchange Bank & Trust Company

Nevada - Charles Schwab Signature Bank, Toyota Financial Savings Bank

New Hampshire - Piscataqua Savings Bank, Salem Co-operative Bank

New Jersey - Somerset Savings Bank, Sun National Bank, KEB Hana Bank USA, Roselle Savings Bank, Kearny Bank

New Mexico - Western Heritage Bank, First New Mexico Bank, Las Cruces, The Citizens Bank of Clovis, Lea County State Bank, Valley Bank of Commerce

New York - First Federal Savings of Middletown, Fulton Savings Bank, Maspeth Federal Savings and Loan Association, Mizuho Bank (USA), Bank of Utica

North Carolina - Piedmont Federal Savings Bank, Roanoke Valley Savings Bank, First Savings and Loan Association, Belmont Federal Savings and Loan Association, Morganton Savings Bank

North Dakota – Ramsey National Bank, Farmers and Merchants State Bank, Horizon Financial Bank, Unison Bank, Security State Bank, Wishek, North Dakota

Ohio - First bank of Ohio, Spring Valley Bank, FDS Bank, The Home Savings and Loan Company of Kenton, Ohio, Valley Central Bank

Oklahoma - Walters Bank and Trust Company, The First Farmers National Bank of Waurika, First State Bank in Temple, Payne County Bank, Washita Valley Bank

Oregon - Umpqua Bank, First Federal Savings and Loan Association of McMinnville

Pennsylvania - Westmoreland Federal Savings and Loan Association, Milton Savings Bank, Liverpool Community Bank, United Savings Bank, BNY Mellon

Rhode Island - Centreville Bank, Citizens Bank

South Carolina - Mutual Savings Bank, Woodruff Federal Savings and Loan Association, First Piedmont Federal Savings and Loan Association of Gaffney, Spratt Savings and Loan Association, Citizens Building and Loan

South Dakota - Richland State Bank, First National Bank, Community Bank, 1st First PREMIER Bank, Financial Bank USA

Tennessee - Elizabethton Federal Savings Bank, Bank of Gleason, Highland Federal Savings and Loan Association, Pinnacle Bank, Citizens Bank

Texas - Oakwood Bank, Brazos National Bank, Citizens 1st Bank, The First National Bank of Aspermont, Citizens National Bank of Crosbyton

Virginia - E*TRADE Savings Bank, United Bank, Old Dominion National Bank, Powell Valley National Bank, Citizens National Bank

Vermont - Northfield Savings Bank, Wells River Savings Bank

Washington State - Yakima Federal Savings and Loan Association, Olympia Federal Savings and Loan Association, SAVIBANK, UniBank, Commencement Bank

Wisconsin - Bank of Alma, The First National Bank of Bangor, Time Federal Savings Bank, WaterStone Bank, Bonduel State Bank

West Virginia - First Peoples Bank, Citizens Bank of Morgantown, Hancock County Savings Bank, The Bank of Monroe, Huntington Federal Savings Bank

Wyoming - Bank of Commerce, First State Bank of Newcastle, Wyoming Bank and Trust, Security State Bank, RSNB Bank

Does It Matter?

2018 marks the 10^th anniversary of the beginning of the most significant financial crisis that the US has experienced in the last 85 years. BestCashCow therefore feels that banks should strive to be not just financially stable, but to be the safest in their state in order to avoid a crisis of anything like the magnitude of the one that we experienced a decade ago.

This list however should be inconsequential for depositors who follow BestCashCow’s advice to remain below FDIC limits for bank deposits (and NCUA insurance for credit union deposits). Learn more about FDIC insurance here.

If you have assets on hand exceeding applicable FDIC limits, you should open multiple accounts in order to stay below limits in any one account. Those who are extremely high net worth should consider a service such as CDARS.

Recognized Banks

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Contact us at contact@bestcashcow.com for more information.

Savings accounts and money market accounts are extremely similar account types. In fact, they are so similar that BestCashCow lists them together. Both are basic ways to stash cash while keeping it accessible (they are liquid accounts). But that isn’t where the similarity ends - both savings and money markets are insured up to $250,000 by the Federal Deposit Insurance Corporation (or FDIC) at banks, or the National Credit Union Administration (or NCUA) at credit unions.

Most importantly, both savings and money market accounts pay interest – sometimes a high yield – and are therefore appropriate places to hold enough cash for a rainy day in any environment, and can be attractive places to hold cash versus stocks or bonds depending on your outlook for the economy.

Account holders of both savings and money markets can avoid any sort of monthly fees for a very low minimum deposit (as low as zero). See a list of the best online rates with the minimum amount necessary to avoid fees here.

Federal regulations may limit savings and money market accounts to six transfers per month (including internet, telephone, etc.), and no more than three of those can be by check, draft or debit card. The account holder can make unlimited withdrawals by teller, ATM or by mail (or by ACH instituted from an external institution).

Where a money market account is different from a savings account is that it adds some of the benefits of a checking account, enabling certain check writing services. However, some banks automatically link high-yield savings accounts to matching checking accounts in order to provide the same service. Regardless of whether you are opening a money market account, you may need a separate checking account to perform essential checking and bill payment services (see the best free checking account options here).

In short, we at BestCashCow do not believe that depositors need to be concerned at all about whether they are opening a savings account or a money market account. We think that depositors should look for the best rates and best service. That can come from online banks or it can come from brick and mortar banks near you.

See the best online rates or see the best local rates near you.

Dollar Savings Direct, a division of Emigrant Bank, now offers depositors a competitive savings rate. After a many year hiatus from the online savings market, Emigrant returns to a competitive position for a company that a decade ago was a pioneer in the online savings space. It remains to be seen whether Emigrant intends to compete for the long-term in the savings and CD arena. At various brief intervals, Emigrant – through Emigrant Direct, Dollar Savings Direct and My Savings Direct – has experimented with attracting depositors with a high rate only to drop the rate, sometimes quite precipitously, after a couple of months.

Since the market meltdown in 2009, Emigrant has also from time-to-time marketed distressed real estate to deposit customers that the bank had repossessed through a “real estate opportunities” link on some of their online banking websites.

Now Dollar Savings Direct (Emigrant) is selling gold.

My personal opinion (no recommendations attached) is that this is a very interesting time to be buying gold. I have never been a gold bug, but it seems to me that the only long term solution for the US to handle its debt is going to be to deflate the value of that debt over time. Therefore, inflation and long-term US dollar rates will need to rise. Likewise, the Trump Administration is prepared to engage in a trade war and to talk down the value of the USD, as Steven Mnuchin did in Davos this morning. I am hesitant to invest in the British pound or the Euro in front of Brexit and the likelihood that the ECB will also race to devalue its currency. I think that anyone investing for more than a couple of hours in emerging market currencies or bitcoin should have his or her head examined. This leaves the shinny yellow metal as an interesting store of value versus the US dollar.

But, the Emigrant proposal just is not yet attractive. While they will deliver the gold that you buy directly to you, most purchasers will opt instead to have them hold and store it for you. Their storage fees, which are layered on top of their transaction fees, are 80 basis points a year. 80 basis points, especially compounded over any length of time, can really take a bite into any appreciation that you are looking to get in the asset (and the asset doesn’t produce any dividends or interest to offset it).

The SPDR Gold Trust (GLD) and the IShares Gold Trust (IAU) represent much more attractive alternatives with better liquidity (tradable any time that the market is open), potential tax advantages of an ETF, and much lower carrying charges. These things aren’t small funds - one is over $36 billion and the other is almost $11 billion - and they are fully vetted by regulators of all sorts and by the media (Bob Pisani of CNBC, among others, went several years ago to see the vaults in London).

I am not a fan of the 40 basis points that GLD charges and the 25 basis points that IAD charges (I think that Blackrock and State Street could charge much less), but these are still less than half of what Dollar Savings Direct or Emigrant are going to charge you to hold the bars for you.

It seems to me that Emigrant is trying to rescue a business model that may have been attractive in an earlier era, but that is largely obviated by ETFs (that of being a custodian for precious metals) on the backs of unsuspecting depositors attracted to their savings rates.