This post was last reviewed and updated on November 8, 2021.
Overall bank rating
Advantages and disadvantages
Savings
Annual Percentage Yield (APY)
0.10% APY
Advantages
- Easy to waive $5 monthly service fee
The inconvenients
- Minimum opening deposit of $100
- Low APY
- $5 monthly service fee
- Interest compounded monthly instead of daily
- Black-owned bank with 7 branches in New York (Brooklyn, Jamaica, Manhattan)
- Waive the $5 monthly service fee by maintaining an average daily balance of $300, OR by making direct deposits of $100 per month, OR by having at least one recurring automatic transfer from your checks to savings of $25 or more
- Interest compounded monthly
- FDIC insured
You might like the Carver Federal Savings Bank Savings Account if you’re eligible to waive the $5 monthly service fee. But if you are looking for a high interest rate, it is better to open a high yield online savings account.
Verification
Annual Percentage Yield (APY)
Nothing
Advantages
- No monthly service fees
- Send money with Zelle
- Removed 5 out-of-network ATM fees per month
- No overdraft fees if you go over less than $10
- Free overdraft protection if you transfer money from your savings to a check
The inconvenients
- Minimum opening deposit of $50
- $2.50 out-of-network ATM fee
- $35 overdraft fee
- Black-owned bank with 7 branches in New York (Brooklyn, Jamaica, Manhattan)
- 55,000 free ATMs in the Allpoint network
- FDIC insured
The Carver Federal Savings Bank Community Free Checking is probably the bank’s most powerful product. There are no monthly service fees and Carver waives the first five out-of-network ATM fees each month.
CD
Annual Percentage Yield (APY)
0.05% APY
Minimum deposit
$1,000 to $2,500
Advantages
- Minimum deposit of $1,000 for terms of 18 months or longer
The inconvenients
- Minimum deposit of $2,500 for terms less than 18 months
- Low APY
- Minimum deposit of $1,000 to $2,500, depending on length of term
- You must contact your branch for information on early withdrawal penalties
- Interest compounded monthly instead of daily
- Black-owned bank with 7 branches in New York (Brooklyn, Jamaica, Manhattan)
- Terms range from 91 days to 5 years
- Interest compounded monthly
- FDIC insured
Carver pays low rates on CDs. To earn a higher rate, you can earn more with online banks.
Money market account
Annual Percentage Yield (APY)
0.05% APY
Advantages
- Minimum opening deposit of $250
- Order paper checks
The inconvenients
- Low APY
- $25 monthly service fee
- No debit card
- Interest compounded monthly instead of daily
- Black-owned bank with 7 branches in New York (Brooklyn, Jamaica, Manhattan)
- Waive the $25 monthly service fee by maintaining a balance of $25,000
- Interest compounded monthly
- FDIC insured
The Carver Federal Savings Bank money market account is probably not the most convenient place to store your money. You’ll earn a low interest rate, and unless you maintain a balance of $25,000, you’ll pay a monthly service fee of $25.
How Carver Federal Savings Bank Works
Carver Federal Savings Bank is a black-owned bank in New York with branches in Brooklyn, Manhattan and Jamaica. It has two free ATMs in Manhattan, but you also have access to 55,000 free Allpoint ATMs in the United States.
The Carver Federal Savings Bank mobile app has 4.5 out of 5 stars in the Apple Store and 4.3 out of 5 stars in the Google Play Store.
To contact customer support, call Monday through Friday from 7:00 a.m. to 11:00 p.m. ET, or weekends from 9:00 a.m. to 5:00 p.m. Or fill out an online form.
Your deposits are FDIC insured up to $250,000 or up to $500,000 for joint accounts.
Is Carver Federal Savings Bank Trustworthy?
The Better Business Bureau gives Carver Federal Savings Bank an F for reliability. The BBB measures trustworthiness by looking at responses to customer complaints, honesty in advertising, and transparency in business practices.
The BBB cites Carver’s failure to respond to customer complaints on the BBB’s website for its F rating. But there have only been four complaints in the past three years, so you might want to take that rating. BBB with a grain of salt.
Carver Federal Savings Bank has no public controversies, which can make you feel good about the business. But if you’re worried about the BBB rating, you might want to read online reviews or ask friends and family about their experiences with Carver.
How Carver Federal Savings Bank Compares to Similar Banks
We compared Carver to two other black-owned banks you can access in New York: Industrial Bank and OneUnited Bank.
Carver Federal Savings Bank v Industrial Bank
Your choice between Carver Federal Savings Bank and Industrial Bank might come down to location. If you live in Brooklyn or Jamaica, Carver is the obvious choice.
Carver has a free checking account, but Industrial is competitive with its Kasasa accounts. Kasasa partners with smaller banks to provide competitive accounts. You may qualify for a High Yield Savings Account, High Yield Checking Account, or Cash Back Checking Account at Industrial.
Carver Federal Savings Bank vs. OneUnited Bank
OneUnited Bank does not have branches in New York, but you can open an account online from anywhere in the United States. So if you’re comfortable with digital banking, this might be a good choice.
OneUnited doesn’t have a free checking account like Carver (although you may be eligible to waive your fee). But it has advance direct deposit so you can get your paycheck up to two days early.
