10 Best Banks in South Dakota for 2024

Banking

South Dakota may be known for its stunning landscapes, from the Black Hills to Badlands National Park, but it’s also home to a solid financial landscape with a variety of banking options.

Whether you’re looking for a robust set of online services or more personalized customer care, there’s likely a bank in the Mount Rushmore State that meets your needs. Read on to discover which institutions stand out in terms of services, fees, and customer experience.

Welcome to South Dakota

10 Best Banks in South Dakota

When it comes to banking, one size does not fit all. It’s important to find a bank that aligns with your financial goals—whether you’re saving for a house, starting a business, or simply looking for a reliable place to deposit your paycheck. We’ve sifted through the options and have compiled a list of the best banks in South Dakota to make your choice a little easier.

1. U.S. Bank

U.S. Bank stands as a leading choice for South Dakotans seeking a range of financial services. Its strong national standing and expansive network of branches in the state make it a popular option for residents.

U.S. Bank is currently welcoming new applicants in 26 U.S. states with a special online offering:

  • Earn up to $800 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account and complete qualifying activities. Subject to certain terms and limitations. Offer valid through March 12, 2024. Member FDIC.
  • Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.

The account includes a free debit card that can be locked or unlocked if ever misplaced or stolen. There are no ATM transaction fees at U.S. Bank ATMs and no surcharge fees at over 40,000 MoneyPass® Network ATMs.

The checking account requires a $25 opening deposit and a $6.95 monthly fee. This fee can be waived for those 24 and under, 65 and over, or military members (must self-disclose).

Additionally, the fee can be waived with monthly deposits of $1,000+, an average balance of $1,500+, or holding an eligible U.S. Bank credit card. Qualifying for any Smart Rewards® tier (Primary, Plus, Premium, or Pinnacle) also waives the fee.

2. SoFi

Gaining traction among South Dakotans for its standout online banking solutions, SoFi excels with its combined Checking & Savings account offering. Clients have the opportunity to earn an eye-catching 4.50% annual percentage yield (APY) on savings and a 0.50% APY on checking accounts, all while enjoying the absence of monthly fees.

For customers keen on receiving their earnings as soon as possible, SoFi’s early direct deposit feature is a notable advantage. This service enables you to get your paycheck up to two days earlier than the standard payout schedule.

Further enhancing its allure are benefits like earning up to 15% cash back on designated purchases when you swipe your SoFi debit card. When it comes to security, the bank impresses with FDIC insurance that protects up to an impressive $2 million.

Additional financial safeguards come in the form of overdraft protection, offering coverage up to $50 without incurring extra charges for account holders with eligible direct deposits.

For those making the switch to SoFi, the bank sweetens the deal with a welcome bonus that varies between $50 and $300, based on your initial deposit.

Ease of use is a strong suit for SoFi, which grants its clients access to an extensive network of over 55,000 Allpoint® ATMs. This ensures that withdrawing cash is a hassle-free experience, no matter where you are.

3. Minnwest Bank

As a family-owned institution, Minnwest Bank is renowned for its top-tier customer service. With a presence in over 30 locations—6 of which are in South Dakota—Minnwest is a community-focused bank offering a comprehensive range of financial products.

For personal banking, Minnwest offers checking and savings accounts, CDs, a health savings account, auto loans, mortgages, and IRAs. Those interested in personal checking have multiple options to choose from, each requiring a $100 minimum opening deposit.

Some of these accounts are interest-bearing, with rates up to 0.50% APY. Depending on the account type, monthly fees can either be non-existent or waived through meeting specific requirements.

On the business side, Minnwest provides SBA loans, equipment leasing, business loans and lines of credit, commercial insurance, and payroll management. Business CDs are also part of their offerings, catering to companies looking for a low-risk investment avenue.

Whether you’re an individual seeking straightforward banking solutions or a business in need of a diverse array of financial services, Minnwest Bank brings a personalized touch to the table. Its strong customer service and varied offerings make it a standout choice among the best banks in South Dakota.

4. Current

Breaking the mold of traditional banking, Current is a U.S.-based fintech that offers streamlined online banking solutions, tailored specifically for individuals with limited or poor credit history. Setting itself apart from conventional banks, Current skips the use of ChexSystems and doesn’t require a credit check for account approval.

A unique selling point is the Current debit card, which provides a pathway to improving your credit score without the need to borrow money or undergo credit scrutiny.

In terms of features, Current offers several noteworthy perks, such as a free overdraft buffer up to $100 and access to an expansive network of 40,000 fee-free ATMs. Adding to its customer-friendly approach is the early direct deposit feature, allowing account holders to receive their paychecks up to two days in advance.

Savings enthusiasts will appreciate Current’s high-yield savings account, boasting a generous 4.00% APY on balances up to $6,000. With the backing of established partner banks and the security of FDIC insurance, Current provides a trustworthy platform for financial management.

5. Dacotah Bank

Rooted in the community it serves, Dacotah Bank is a state-chartered institution headquartered in Aberdeen, with branches spanning across South and North Dakota.

The bank also has a limited footprint in states such as Iowa, Minnesota, Montana, Nebraska, and Wyoming. Known for being operated by and for the local community, Dacotah Bank has a commendable track record of supporting local charities and nonprofit organizations.

As for agricultural banking, Dacotah offers mobile and online solutions, agricultural loans, and insurance, alongside specialized checking accounts for agricultural businesses. They also provide estate and trust services, as well as farm and ranch management tools.

For business customers, the bank provides a plethora of services such as card solutions, online and mobile banking, cash management, business checking, and SBA loans. Investment and wealth management services are also part of their business offerings.

On the personal banking front, Dacotah Bank has a diverse set of options that include checking and savings accounts, mobile and online banking, various loans, money markets, and CDs. Their suite of services also extends to personal insurance, investment, and wealth management.

6. First Dakota National Bank

With its roots deeply planted in South Dakota since 1872, First Dakota National Bank (FDNB) has grown to include 18 locations throughout the state, featuring branches in cities like Sioux Falls, Mitchell, and Pierre.

Offering a comprehensive suite of services, FDNB caters to agricultural, business, and individual consumers with various banking, trust, and investment options.

In terms of checking accounts, FDNB offers a range to suit various needs. The FirstPartners Checking account comes with numerous features and requires a $25,000 combined balance to avoid a monthly fee. FirstChoice is tailored for students and has no monthly fees.

ClassicChoice is an interest-bearing account with perks for maintaining a $1,000 balance, while FREE Checking offers basic services without monthly fees or balance requirements.

The bank also provides investment options through Raymond James Financial Services. Overall, FDNB’s versatile offerings make it a standout choice among the best banks in South Dakota.

7. First Interstate Bank

Having recently expanded its reach through the acquisition of Great Western Bank, First Interstate Bank is a community-oriented institution headquartered in Billings, Montana.

In South Dakota, the bank has a robust presence with 46 branches scattered across the state, including locations in the top five populated cities: Sioux Falls, Rapid City, Aberdeen, Brookings, and Watertown.

First Interstate Bank offers a comprehensive range of deposit options, such as checking, savings, and CDs.

For those looking to manage their wealth more comprehensively, the bank’s wealth management team can assist with everything from short-term investments to IRAs. Additionally, experts at the bank are available for trust and estate planning, as well as tax-related concerns.

8. Wells Fargo

Established in 1852 and now a national banking giant, Wells Fargo boasts an extensive network of over 4,700 branches, 30 of which are in South Dakota. This makes it the bank with the second-largest footprint in the state, just behind First Interstate Bank.

If you’re in the market for a personal checking account, Wells Fargo offers four different options, each requiring just a $25 minimum deposit to get started.

The bank also has two savings account types, which come with monthly service fees that can be waived if you meet minimum balance criteria or opt for digital statements.

Wells Fargo isn’t just about personal banking; they also offer a wide array of other products, like credit cards, various types of loans, and business checking accounts.

With the convenience of the Wells Fargo mobile app, managing your finances becomes an easy task, allowing you to do everything from checking your account balance to tracking your investments.

9. First National Bank of Sioux Falls

With a strong local presence, First National Bank of Sioux Falls has built a strong reputation by providing various financial services tailored to the community. Offering everything from personal checking and savings accounts to mortgages, this bank serves as a one-stop-shop for all your banking needs.

Not limited to personal finance, First National Bank of Sioux Falls also has a strong suite of business services, as well as specialized offerings for the agribusiness sector.

This wide range of services positions the bank as a versatile financial institution, ready to meet the unique needs of South Dakota residents and business owners alike.

Whether you’re looking to manage your personal wealth or need specialized financial services for your business or agribusiness, First National Bank of Sioux Falls is equipped to assist.

Its commitment to community-oriented banking and diversified services makes it a standout choice among the best banks in South Dakota.

10. First Bank & Trust

Founded in 1880 and headquartered in Brookings, First Bank & Trust is a small-town bank with a big heart, boasting 15 branches across South Dakota and seven more in Minnesota.

Known for its customer-centric approach, the bank offers four distinct checking accounts, two of which don’t require a minimum balance or opening deposit, making it accessible for everyone.

First Bank & Trust doesn’t stop at checking accounts; it also offers three types of savings accounts, catering to various age groups, from teens to younger children.

Whether you’re interested in mortgages, credit cards, HSAs, or home loans, this bank has you covered. Additional offerings like CDs and estate planning services make First Bank & Trust a comprehensive financial institution.

To top it off, First Bank & Trust also provides modern amenities such as a Mobile Wallet and identity theft protection, ensuring both convenience and security for its customers.

How to Choose the Best Bank in South Dakota

Choosing a bank is a significant decision that can affect your financial well-being for years to come. With several factors to consider and a plethora of options available, making the right choice can feel overwhelming. Here’s a guide to help you find the best bank in South Dakota that aligns with your financial needs and lifestyle.

  • Location and accessibility: The first step in choosing the best bank is to consider its locations and accessibility. Even though online banking has become increasingly popular, there are times you might wish to visit a physical branch. Make sure the bank you choose has locations near your home or workplace, and check their operating hours for your convenience.
  • Types of accounts offered: Different banks offer different types of accounts, each with its own set of features and benefits. Whether you’re looking for a basic checking account, a high-yield savings account, or specialized accounts like HSAs and IRAs, scrutinize the options to ensure they align with your financial goals.
  • Fees and charges: Banks often have various fees attached to their accounts, such as monthly maintenance fees, ATM withdrawal fees, and overdraft fees. Make sure to read the fine print and understand all the costs associated with an account before you decide. Many of the best banks in South Dakota offer accounts with no or low fees, making them a cost-effective choice.
  • Interest rates: Interest rates can have a significant impact on your savings over time. Higher interest rates on savings accounts, CDs, and other interest-bearing accounts can make your money work harder for you. Compare the annual percentage yield (APY) across different banks to get the most bang for your buck.
  • Online and mobile banking features: In today’s digital age, having robust online and mobile banking capabilities is crucial. From checking your balance and transferring funds to depositing checks and paying bills, you should be able to handle most of your banking needs remotely.
  • Customer service: Good customer service can be invaluable, especially when you encounter issues or have questions about your account. Look for banks with a reputation for excellent customer service, multiple contact options, and extended support hours.
  • Additional services: Beyond basic banking, you may need other financial services such as loans, credit cards, or investment options. Many of the best banks in South Dakota offer a full range of financial products, making it easier to manage all your finances in one place.
  • Reviews and recommendations: Lastly, don’t underestimate the value of reviews and personal recommendations. Reading customer reviews can provide real-world insights into what you can expect from a bank. Also, don’t hesitate to ask friends, family, or coworkers for their recommendations, especially if they have similar financial needs.

Bottom Line

Choosing the right bank is an important decision that influences your financial health and day-to-day convenience. By evaluating various factors such as location, account types, fees, and customer service, you can narrow down your options and select the best bank in South Dakota that aligns with your needs.

Remember, the best banks in South Dakota are those that offer a blend of competitive rates, low fees, and excellent customer service, all while providing the financial products and services that fit your lifestyle. Make a well-informed choice and enjoy the peace of mind that comes with knowing your finances are in good hands.

Dawn Allcot
Meet the author

Dawn Allot is a personal finance writer and content marketing expert specializing in finance, travel, real estate, and technology. In addition to her work at Crediful, Dawn regularly writes for Bankrate, GoBankingRates, and The Balance.