Best Banks for Trust Accounts [2024]: Low or No Fees and Services When You Need Them

Trusts are a way to securely hold funds for someone’s future use. Because a trust is its own legal entity, it can have its own bank account. The best banks for trust accounts will manage your funds properly and provide you with the right services for your needs.

However, trusts can be complicated, so it’s important to do your due diligence before opening an account. You’ll want to be sure the trust can add and withdraw funds conveniently, earn interest, or invest for the future, depending on who the trust is for and who is managing the account. You may also want to work with an estate attorney to ensure everything is set up according to your wishes. We’ve rounded up five of the best banks for trust accounts below to help you as you narrow your search.

How we evaluate products

To determine our picks, we first compiled a list of banks that offer this account option. We eliminated banks with net-worth or private advisor requirements. Of the banks that remained, we then gathered information about the services, cost, and features of each one. We also considered additional key factors for trust accounts, including FDIC insurance, bank reputation, account minimums, and fees. Our final selections offer a range of services, have insurance protection on deposits, and have low or no account fees.

It’s important to note that we did not review every available option in the market, and our recommendations aren’t listed in a specific order. Our goal is to provide readers with the best overview of banks for trust accounts that we feel good recommending so they can make informed decisions when choosing.

What is a trust account?

A trust account is a type of bank account used to manage a trust’s assets. A trust is a legal contract between:

• The grantor: This is the person who owns the assets.
• The beneficiary: This is the person who will receive or benefit from the assets.
• The trustee: This is the person (or entity) who holds and manages the assets for the beneficiary.

Trusts can help protect assets, make charitable giving easier and streamline wealth transfers between spouses, children, and grandchildren. They can help make sure your assets are distributed the way you want them. They can also help your beneficiaries avoid probate.

Some examples of assets you can hold in a trust include:

• Cash
• Stocks
• Bonds
• Bank accounts
• Real estate
• Mining rights
• Business interests

After you move assets into the trust’s name, you can establish a bank account to hold them until it’s time to disburse them to a beneficiary.

Best banks for trust accounts

Ally Bank

Fidelity

Synchrony Bank

Alliant Credit Union

Charles Schwab

Compare the best bank accounts for trusts

Bank	Best for	Products	Fees
Ally Bank	Online banking	CDs, checking, money market, savings	No monthly maintenance fees
Fidelity	Investing	Brokerage	Investment fees; service fees apply for optional personal trustee service ($4,500 minimum)
Synchrony Bank	Saving	CD, High yield savings, money market	No monthly service fees
Alliant Credit Union	Credit union accounts	CDs, checking, high-yield savings, supplemental savings	No monthly service fees
Charles Schwab	Trust services	Brokerage, checking, savings	No monthly maintenance fees; investment fees may apply

Ally Bank

Ally’s online banking options offer very competitive annual percentage yields (APYs) – and that extends to trust accounts, too. I like that you can open a trust account online easily with Ally and choose from several different types of accounts, including CDs, checking, and savings. You can also have more than one trustee on the account (although only one account owner). If you already have an account with Ally, it’s fairly simple to convert it to a trustee account.

Although I prefer to manage my accounts online, you may want to consider a different option if you prefer in-person banking, as there are no physical branches. However, Ally does offer help over the phone.

Visit Ally Bank

Fidelity

If you’re looking for a place to invest and grow your trust funds, Fidelity can help. You can open a trust account at Fidelity online or re-register an existing account to be a trust account. You can even collect digital signatures from trustors to make the process even more streamlined.

If you’re looking for professional assistance with managing your trust, Fidelity can do that, too. Its personal trust services start at $4,500, plus 0.45% fee (on the first $2 million of assets) if Fidelity acts as co-trustee.

Visit Fidelity

Synchrony Bank

If you’re the set-it-and-forget-it type, you might prefer the savings options available at Synchrony Bank. There’s no minimum balance requirement and no monthly fees, which leaves more of your principal available for earning. I like that Synchrony will supply ATM cards and reimburse some ATM fees, although cards are only for trustees who are also grantors on the account.

Synchrony offers competitive APYs on most products except for very short-term CDs. However, if you want a bank with physical branches, Synchrony isn’t it. You can’t open a trust account online, either; you’ll have to call 1-866-226-5638 instead.

Visit Synchrony Bank

Alliant Credit Union

For those who prefer credit unions over private banks, Alliant Credit Union offers several options for trust accounts, including a yield-earning checking account, a high-yield savings account, supplemental savings accounts, and CDs. While Alliant’s APYs aren’t the highest, they’ll still help you grow your funds.

On the other hand, Alliant may not be the best choice if you need convenient access to the funds; no debit or ATM cards are available for trust accounts, and there are no physical branches to visit, either. Plus, you’ll need to join the credit union before you’re eligible to open a trust account.

Visit Alliant Credit Union

Charles Schwab

Trusts can be complicated, and sometimes you want some professional advice. Charles Schwab offers several trust accounts, including its brokerage, checking, and savings. Its Schwab One trust account is available for estates of every size. Plus, Schwab’s private trust services can help administrate the trust and manage investments. Schwab can act as a corporate trustee, co-trustee, or successor trustee, smoothing the management of the trust.

However, hiring Schwab to manage your trust account can be expensive and may require a significant investment. With Schwab Personal Trust Services, clients pay a 0.50% fee on the first $5 million invested and 0.25% on the next $5 million. The minimum annual fee for Personal Trust Services is $5,000.

Visit Charles Schwab

What types of trusts are available?

Some of the most common types of trusts include the following:

• Revocable trust: A revocable trust is also called a living trust and can be changed after it's created. They detail how your assets should be distributed after death. A revocable trust allows you to avoid probate, which can be a long, public process.
• Irrevocable trust: You can’t change an irrevocable trust once it's been set up. The assets included in the trust are removed from your estate, and the trust files and pays its own tax return.
• Charitable trust: Charitable trusts help you leave a lasting legacy to a charitable organization.
• Special needs trust (SNT): If you have a child or family member with special needs, you can use a trust to care for them after your death. They allow you to provide for your family member after your death while keeping them eligible for government benefits.

What to look for in a bank for trust accounts

Finding the best banks for trust accounts can take dedicated research. Understanding some of the primary features of a trust account and comparing your options will help.

Minimum balance requirements

Each bank requires a different minimum balance for trust accounts. Look for a bank whose minimum balance aligns with your needs. You may need to phone the bank to find out the balance minimums.

Account insurance

Checking and savings accounts at banks and credit unions are usually insured by the FDIC up to $250,000, meaning your funds are protected if the bank goes under. However, brokerage accounts don’t have the same protections, and investments are always subject to risk.

The exact amount of insurance the trust is eligible for is based on the number of beneficiaries and the assets included. Generally, account balances are insured if they are less than the insurance limit. The excess amounts are uninsured if the account balance exceeds the allowed balance per beneficiary.

Low fees

Trustee fees are payments for managing the trust and can be a significant expense. Banks may also charge separate maintenance fees on trust accounts, which can eat into your trust balance considerably.

Understand the fee structure of the financial institution you’re working with. Ask detailed questions and get the fee structure in writing so that you are prepared before the trust account is created. There are so many options available with no monthly fees that I always recommend looking at a no-fee account first.

Convenience

When you’re searching for an institution to hold your assets in trust, look for a bank that is easy for you and your beneficiaries to work with. Consider visiting a branch or speaking with a banker who can answer your questions in detail. Ensure your beneficiaries are also comfortable working with the trust bank and trustees. If you have corporate trustees, make sure at least one of them is familiar with your beneficiaries and that your family members feel comfortable going to that person with questions or concerns.

FAQs

Products that didn’t make our list

During the course of my research, I came across other banks that offer trust services, but these didn’t make it on our list.

• Wells Fargo: Trust services are available through Wells Fargo’s The Private Bank. Wells Fargo will serve as corporate trustee and can administer your trust. It also offers legacy and special needs trusts. However, some private banking with Wells Fargo requires a minimum balance of $500,000, which may be out of reach for some. Read our Wells Fargo Bank comparison.
• Bank of America: Bank of America offers a variety of trust services, but most are geared toward high-net-worth Private Client families. You’ll need to work with a Private Client advisor to learn about your options and set up the account. Read our Bank of America Review.
• U.S. Bank: You can arrange for U.S. Bank to manage your trust and serve as a corporate trustee. However, the bank does not disclose its account options or fees. You’ll need to talk to a wealth advisor to find out your options. Read our U.S. Bank review.

Bottom line

Setting up a trust can be a complicated process that needs to be handled by an attorney familiar with estate planning and trust creation. Finding the right bank to manage your trust account after it has been created can ensure your beneficiaries are well-educated before they inherit your assets.

Be sure to research your trust account options before signing up, and pay attention to account minimums, insurance coverage, and fees charged by the bank.