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You can generally find the best personal loan rates with online lenders and credit unions, but sometimes there's a good reason to choose a bank instead. There's a lot to be said for being able to walk into a physical location to chat with a real live person.
And besides, banks have direct access to your accounts, so it's often a more straightforward process to get a personal loan from a financial institution you're already working with. Not all bank loans are bad, either—our top picks come with low APRs and fees, generous terms, and fast funding.
Best Bank Loans of March 2023
Company | APR | Credit Score est. | Loan Amount | More Details |
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Looking for loans from a broader selection of lenders? See our picks for the overall best personal loans.
Best Big Bank : U.S. Bank
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- APR Range: 8.74% - 21.24%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
Same-day funding
Offers good discounts
Wide range of loan options
Only available in 26 states
Restrictions for non-customers
Not available to applicants with bad credit
If you have good or excellent credit and you're already a customer, U.S. Bank is a particularly good choice for a personal loan. The bank offers two rate reduction options, more than most: a 0.50% discount for signing up for autopay, and a full 1% discount if your credit score is over 800.
You can still apply if you're not currently a U.S. Bank customer, and it may be worth it if you have excellent credit considering the hefty interest rate discount. You will face extra limitations, however: You'll have a reduced loan limit of $25,000 and you can only extend your loan out to five years (versus a $50,000 cap and a seven-year term length option for customers). Perhaps most annoyingly of all, you'll need to actually go to a U.S. Bank branch to close the loan. Current customers get the option to do this online from the comfort of their homes.
- Credit score of 660 or higher (higher for non-customers)
- Age of majority in your state
- Resident of a state where U.S. Bank operates
- Valid Social Security number
Best for Investors : TD Bank
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- APR Range: 8.99% - 21.99%
- Loan Amount: $2,000 - $50,000
- Loan Terms: 36 months - 60 months
Excellent rates
Instant loan decision
Offers natural disaster support
Only available in 16 states
Relatively slow funding times
Doesn't allow joint applicants or co-signers
If you're looking to consolidate all of your finances under one umbrella, TD Bank may be a good choice because it also offers plenty of investment options. Although anyone can get started investing with TD Bank, its full suite of services is best suited for those with at least $750,000 in assets.
TD Bank’s loans come with great rates, and benefits like a natural disaster assistance program through which you can get refunded for any eligible late fees charged and put your loan into deferment for 90 days.
The downside is TD Bank personal loans aren't widely available across the country. In addition, you'll need to qualify on your own merit because you can't add any co-signers or co-borrowers to the loan.
Just as you would shop around for personal loans, you should do the same for your investment service. There's a wide range of options out there for investors and traders of all kinds.
- U.S. citizen
- At least 18 years old
- Only available in 16 states (mainly in the eastern U.S.) and the District of Columbia
Best for Amex Cardmembers : American Express
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- APR Range: 4.98% - 19.99%
- Loan Amount: $3,500 - $40,000
- Loan Terms: 12 months - 36 months
Ultra-low rates
Offers financial hardship programs
Instant loan decision for most applicants
Slow funding timeline
Doesn't offer any discounts
Only available to invited Amex cardmembers
If you get an invitation to apply for an Amex loan in the mail and you actually do need to borrow money, consider yourself lucky. You're only eligible to apply if you receive such a notice, but if you do, you'd be hard-pressed to find a lender offering a lower rate.
An Amex personal loan also comes with built-in protections if you become a victim of a natural disaster or lose your job. The company doesn't disclose exactly what these protections are, but other companies offer things like forbearance programs and assistance in finding a new job.
- At least 18 years old
- U.S. citizen or resident
- Must be an Amex cardmember with an online account
Best Credit Union : PenFed Credit Union
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- APR Range: 7.74% - 17.99%
- Loan Amount: $600 - $50,000
- Loan Terms: 12 months - 60 months
Perks and discount program
Monthly or bi-weekly payment options
Credit union membership available to anyone
No interest rate discounts
Same-day funding not available
Must keep a separate savings account open
Many people prefer working with credit unions because they're community-focused nonprofit organizations, but they generally have strict membership requirements. Not so with PenFed; anyone is eligible to join. You can even apply for the loan first and wait to see if you're approved before becoming a member.
If you do take out the loan, you'll need to formally join the credit union by opening a savings account and keeping $5 in it. That's not a huge deal, but it can be annoying if you won't be using it regularly. PenFed also offers a member discount program where you can save money on purchases with 24 different companies, ranging from FTD flower delivery to Travelers auto insurance.
- Recommended credit score of 650 or higher
- Available in all 50 states and the District of Columbia
Best for Citi Relationship Rewards : Citibank
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- APR Range: 9.49% - 20.49%
- Loan Amount: $2,000 - $30,000
- Loan Terms: 0 months - 60 months
No origination fee
Same-day funding
Interest rate discount for rewards tier customers
No pre-qualification available
Penalty interest rate for making late payments
Only available to established Citibank customers
Citibank highlights the main benefit of opting for a bank personal loan as opposed to any other lender: It can be incredibly fast. You can expect a loan decision within 60 seconds of submitting the application, according to Citi. After that, you can get a same-day deposit into your account (checks take a bit longer, up to five days).
The downside is that Citibank assumes you're serious about the loan. There's no option to pre-qualify to see your rates and approval odds. You can only submit a full, complete application, which also requires a hard credit check that can temporarily knock a few points off your credit score. You'll also need to be equally serious about paying it back because if you miss payments, Citibank may take an unusual step and increase your interest rate. That commonly happens with credit cards, but it's relatively rare for loans.
- Annual income of $10,500 or more
- Available in all 50 states and the District of Columbia
- Must have a Citibank bank account that's been open for at least one year
- Credit score not disclosed, but you must "satisfy Citi's creditworthiness criteria"
- No more than one other open Citi personal loan, and only if it's been at least six months since you took out the previous loan
Best for 30-Day Loan Guarantee : Discover
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- APR Range: 6.99% - 24.99%
- Loan Amount: $2,500 - $35,000
- Loan Terms: 36 months - 84 months
Excellent rates
30-day guarantee
Can refinance the loan with Discover
No discounts available
Restrictions on loan use
No joint applicants or co-signers allowed
Good rates aside, Discover is one of the few lenders that offers a 30-day money-back guarantee if you change your mind. As long as you return all funds to Discover, the company won't charge any interest. (Note that if Discover sent the funds to your creditors for a debt consolidation loan, you’d be responsible for repaying the money if you want a refund.) In addition, Discover allows you to refinance your loan with them again if you think you'd qualify for better rates in the future.
Since Discover also offers credit cards, there's one big downside: You can't use a Discover personal loan to consolidate any debt from a Discover card. You also can't apply with someone else on the loan, so you'll need to meet the qualification requirements entirely on your own.
- Recommended credit score of 660 or higher
- Annual income of $25,000 or more
Best for Wells Fargo Customers : Wells Fargo
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- APR Range: 7.49% - 23.74%
- Loan Amount: $3,000 - $100,000
- Loan Terms: 12 months - 84 months
Ultra-low rates
Wide range of loan options
Interest rate discount for autopay
Negative customer reputation
Must be a current Wells Fargo customer
Doesn't allow joint applicants or co-signers
Wells Fargo has the second-largest footprint in the U.S., with over 4,500 branch locations. That means you're never too far away from a branch, and indeed, you will need to already be a customer in order to apply for a Wells Fargo personal loan online. The company offers a rate reduction if you enroll your Wells Fargo checking account in autopay, ranging from 0.25% for most everyday checking accounts or 0.50% for premium-level checking accounts.
There is a big elephant in the room with Wells Fargo, however: The company doesn't have the greatest reputation, even for a large bank. Since 2017, personal loan customers have lodged over 820 formal complaints against Wells Fargo with the Consumer Financial Protection Bureau, which has also taken numerous enforcement actions against Wells Fargo over the years for illegal practices.
- Must be a current customer of Wells Fargo
- Available in all 50 states and the District of Columbia
Best for USAA Members : USAA
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- APR Range: 8.74% - 18.51%
- Loan Amount: $2,500 - $100,000
- Loan Terms: 12 Months - 84 Months
Wide range of loan options
Perks and discounts program
Can refinance the loan with USAA
No pre-qualification available
Can't change payment due date
Only available to USAA members
Unlike PenFed, you'll already need to be a USAA member to apply for a personal loan, and membership is much more limited: only current and former military members and their families can join. Another big downside is that USAA doesn't offer a pre-qualification option to check your rates first. You'll need to submit a full application, even if you're not yet sure USAA will be your best loan option.
However, USAA does offer quite a few loan choices, and you can even refinance the same USAA personal loan with the bank later if you'd like to change your loan terms. Depending on which loan term length you're looking at, there are also important loan minimums to keep in mind:
- 12–36 months: $2,500 minimum
- 48 months: $5,000 minimum
- 60 months: $10,000 minimum
- 72 months: $15,000 minimum
- 84 months: $20,000 minimum
Applying for a personal loan without getting pre-qualified first means you may need to accept a small hit to your credit in exchange for seeing your loan options with that lender.
- Must be a current member of USAA
- Available in all 50 states and the District of Columbia
Compare the Best Bank Loans of March 2023
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Final Verdict
Taking out a personal loan from a big bank can be a mixed bag. In some cases you have to already be a customer, and although banks like Wells Fargo sometimes offer very low rates, you may have to look past company scandals. If you're taking out a debt consolidation loan you may need to be careful of any restrictions on which credit cards you can pay off, especially if it's from the same bank, like Discover. But all in all, a loan from a big bank can be a great option to simplify your finances and get quick access to cash; if you’re already a member, we recommend U.S. Bank as our top pick.
Guide to Choosing the Best Bank for Your Personal Loan
Are You in Need of a Personal Loan?
Are you facing a sudden financial emergency, or struggling to pay down multiple high-interest debts? Do you have a big (necessary) purchase coming up that you can't afford to pay for all at once? A personal loan could help you meet the cost, giving you one or more years to pay back the money, with interest.
Unsecured personal loans tend to have lower interest rates than credit cards, making them a good option if you have an expense and need more than a few months to pay. If you have multiple credit cards with high balances, for example, a personal loan for debt consolidation could help you get a lower interest rate and the convenience of a single monthly payment.
Before applying for a loan, or any financial product, consider how the monthly payments will fit into your budget. Will you be able to repay it on schedule? If not, it could add to your debt and lead to a worse financial situation.
Compare Bank Loan Lenders
Consider the following when comparing bank loan lenders:
- Loan amounts: Check the minimum and maximum loan amounts—some borrowers have relatively high maximums, but you shouldn't borrow more money than you need. Find a lender with loan amounts that fit your purpose.
- Interest rates: Lenders will likely offer you different interest rates, so take the time to pre-qualify with several companies to shop around for the lowest rate you can get. The lower your APR, the less you'll pay over the life of the loan.
- Fees: Loans may come with origination, pre-payment, and late fees, among others. Be aware of any costs you'll be expected to pay before signing the loan agreement.
- Monthly payment: Loans come with fixed monthly payments, which you may be able to adjust as you select different repayment periods. Be sure your payment fits into your budget. Most lenders don't charge prepayment fees, so there's usually no harm in paying more than your regular payment each month.
- Repayment periods: Will you have long enough to repay the loan? Falling behind on payments can damage your credit and finances in general.
- Funding time: If you need the money tomorrow and the funding time is seven days, the loan won’t work for you. Find out how long the loan takes to fund and how you will receive the funds.
Apply for a Bank Loan
After you've shopped around for quotes from different lenders and found the right offer for you, you can complete the application process. If approved, you can sign the loan agreement. You'll need to provide some personal information and bank account details; for debt consolidation loans, you may be able to provide creditor information for the lender to send the funds.
Some companies will disburse loan funds as soon as the same or the next day, while others may take several business days. You'll typically be given an online dashboard from which you can view your payoff timeline, make payments, and otherwise manage your loan.
What Do I Need to Qualify for a Personal Bank Loan?
Different banks have different requirements for personal loans. Some require better credit and relatively higher income, while others allow lower credit scores and smaller incomes. Many banks offer a range of interest rates and fees to offer borrowers with different credit levels and financial situations. The better your credit and overall finances, the better your offers will be; if you have poor credit you may qualify in some cases, but you'll likely get higher APRs and fees.
If you're wondering if you'll qualify for a bank loan ,it's wise to check your pre-qualification status with a variety of lenders. You can do this without hurting your credit or actually applying. You'll need to provide some personal information to pre-qualify, including your name, address, and Social Security number; full applications will usually require more information.
Do All Banks Offer Personal Loans?
No, not all banks offer personal loans. Bank of America, one of the biggest financial institutions in the country, doesn’t provide them, and neither do several others. Most personal loans are unsecured, meaning they are not backed up by an asset that the lender can take if you default, and some banks don't want the risk. Others just don't want to deal with the expense of lending and servicing relatively small amounts.
Other large banks that do not offer unsecured personal loans are Capital One and Chase.
Do I Need to Be an Existing Bank Client to Get a Loan?
You typically don't need to be an existing client to get a loan from a bank, but some banks do have this as a requirement. It's best to check with the specific lender to see if this is necessary.
Some banks allow non-customers to apply, but will limit certain services, like pre-qualification, to clients. In other cases only current customers can apply online, and other prospective borrowers must apply at a branch location.
What Are Alternatives to Bank Loans?
While many banks offer personal loans, there are some limitations. Some require memberships, or have too-strict qualification standards. In some cases the minimum loan amount may be higher than what you're looking for. Consider the following types of lenders along with typical banks:
- Online lenders: Much like traditional banks, many online lenders give you quick and easy access to personal loans. You can usually see if you pre-qualify before applying, which doesn’t hurt your credit. After approval, you can usually get funds fairly quickly—sometimes within a day. The best online lenders offer few, low, or no fees; flexible repayment terms; and competitive APRs.
- Credit unions: If you have less-than-stellar credit, you may want to reach out to credit unions near you for personal loans. While many require a member account first, they offer competitive APRs and low minimum borrow amounts. This is helpful if you don’t need to borrow too much to cover an emergency.
- Credit card balance transfers: If you want to consolidate debt, a credit card balance transfer may be helpful, especially if you already have an available card. Many credit cards even offer 0% APR for a limited period of time, which may be long enough to help you catch up on payments.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.
*Lightstream Disclosure: Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $300.00.
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