Introducing Reliability Rating: A Powerful New Way To Gauge Bank Health

Forbes

22-07-2025

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Our new grading system offers a clear, data-backed signal of a financial institution's strength.
Our rating may have flagged vulnerabilities at Silicon Valley Bank and First Republic Bank before their failures.
We found the 25 safest and 25 least safe banks and credit unions across the U.S.
A total of 572 U.S. banks have failed since 2000, according to the Federal Deposit Insurance Corp. (FDIC), with three large regional banks closing in 2023, two banks in 2024 and two more this year. Given those headlines—and talk of recession, tariffs and stubborn inflation—it's only natural to wonder about the resilience and longevity of your own bank.
That's why we developed Reliability Rating. Our proprietary model turns dense financial data into a simple letter grade, so you can see at a glance whether the overall financial health of your institution looks rock solid—or risky—before trouble starts.
Moving forward, Forbes Advisor will assign letter grades to banks and credit unions, making it easier to spot the health of your institution at a glance.
Reliability Rating is a data-driven scoring model that evaluates banks and credit unions on six key dimensions of financial health. Each category feeds into an overall score, with capitalization and liquidity weighted most heavily to reflect their importance in financial resilience. The rating is refreshed quarterly, using the latest FDIC and National Credit Union Administration (NCUA) call report data. Here's the methodology behind the score.
To ensure we provide the most insight possible into your bank or credit union, our methodology is built to evolve and adapt to current economic conditions. We made it consistent enough for quarter-over-quarter comparisons, yet flexible enough to adapt to future economic changes and regulatory developments.
Reliability Rating is on its way to becoming a core measurement in all of our 'best' lists—everything from top checking accounts to the highest-earning CDs—so you'll know the institutions we recommend not only offer great rates, but are built to last.
Before launching the rating, we ran a retrospective stress test on two of 2023's most notable bank failures.
The results are clear: Our rating would have flagged key vulnerabilities well before the collapse of these banks. Silicon Valley Bank would have landed in the bottom 10% of our ranking, receiving an F overall. Out of six categories, it received an F in two—growth and stability and account safety and insurance. It also did poorly in the liquidity category, receiving a C. These weak scores reflect its unusually high share of uninsured deposits and its rapid balance-sheet growth relative to industry norms.
would have landed in the bottom 10% of our ranking, receiving an F overall. Out of six categories, it received an F in two—growth and stability and account safety and insurance. It also did poorly in the liquidity category, receiving a C. These weak scores reflect its unusually high share of uninsured deposits and its rapid balance-sheet growth relative to industry norms. First Republic Bank would have ranked in the bottom 10% of our Reliability Rating, penalized for its insured deposit ratio, liquidity and growth and stability. It received an F overall, an F in growth and stability and a D in account safety and insurance.
In addition to the two banks above, we looked at Chicago's Pulaski Savings Bank, which failed and closed its doors on January 17, 2025. It received an F overall in our ranking, penalized heavily for its poor asset quality (F), earnings (F) and liquidity (D).
Using our proprietary Reliability Rating, we've ranked the top 25 most reliable banks and credit unions in the U.S. today.
We combed through roughly 3,900 FDIC-insured institutions, and only 125 banks cleared our 'A' bar this quarter. None reached the ultra-rare A+ level, but 11 scored a straight A while the remaining received a still-elite A-.
Charles Schwab, Northern Trust Co. and Morgan Stanley Bank sit at the very top, each boasting A+ cushions in both capitalization and asset quality with strong scores in liquidity as well. In fact, every bank in the table scores at least A or A- for both capitalization and asset quality, two of the pillars closely tied to durability in a crisis, and most also earn A- or better for liquidity.
Put simply, these 25 names boast solid capital, healthy loan books and deep cash buffers—the financial traits you want on your side if a recession hits.
Whether a small community bank or larger institution, F-rated banks on our list share similar characteristics: weak earnings, a large share of uninsured deposits and aggressive growth without capitalization to match. None of the banks that earned an F on our list have collapsed, but they appear far less resilient than the A- and B-rated names at the top of our list.
An F grade doesn't mean a bank will fail, but it does signal higher risk. It means you should think carefully before trusting that institution with your hard-earned money. Some of these banks may offer APYs, which could mean higher rewards but also higher risk.
Fortunately, your money doesn't disappear when a bank or credit union goes under: Deposits are federally insured up to $250,000 per depositor, per institution by FDIC for banks and the NCUA for credit unions. Bank failures are still relatively rare. Still, it's tough to stomach the potential of locked-up funds, missed paychecks or frazzled nerves while the system sorts things out.
Metropolitan Bank & Trust Co, Turtle Mountain State Bank and Vast Bank National Assn. sit at the bottom of our pack this round. Each carries an overall F, flunking at least two of our sub-categories. Though their loan books look clean, all three share dangerously low capital buffers and minimal growth. And Metropolitan Bank & Trust Co and Turtle Mountain State Bank both have heavy concentrations of uninsured deposits, leaving retail customers exposed.
Here are the top 25 least safe institutions to keep your money:
Reliability Rating is based on six critical metrics and emphasizes financial resilience and consumer protection.
Retrospective testing shows the score would have highlighted significant red flags at failed banks like Silicon Valley Bank, Signature Bank and First Republic Bank, guiding consumers toward more stable options.
The rating will be refreshed quarterly with the latest FDIC and NCUA data.
The methodology is flexible, adapting over time to reflect evolving market conditions.
If your bank fails, it can strand your uninsured funds, hurt your cash flow and potentially force you into inconvenient workarounds. The FDIC and NCUA guarantee only up to their insurance caps—anything beyond that limit is at risk if your institution proves unreliable. Here are a few things that can happen if your institution fails or is in serious distress. Loss of access to uninsured deposits. The FDIC and NCUA insure deposits up to $250,000 per depositor, per ownership category, per FDIC- or NCUA-insured bank. Funds you have deposited above that limit are at risk and could take several years to recover. Delayed access to funds. When a bank fails, the FDIC or NCUA (depending on where you bank) pays depositors up to the insurance limit, generally within a few days after the bank officially closes its doors. But depending on your case, it may take some additional time to process. Service interruptions and delayed payments. The FDIC typically tries to find an open bank to assume the responsibilities of the failed bank. If it happens quickly, you may not see any drop in service. If not, automated payments (e.g., direct deposit, bill pay) might be delayed or rerouted, leaving you to scramble to pay creditors. Required refinancing of loans. If you have a mortgage or a business loan at a failed bank, you'll be notified by the FDIC or NCUA that your service has been transferred and encouraged to seek a new lender to refinance your loan. The silver lining is that occasionally, the FDIC will offer an incentive to refinance by offsetting the closing cost on the refinance. Total loss if your bank isn't insured. Money held in nonbank payment apps—think Venmo, Paypal and Cash App—are typically not insured by the FDIC or NCUA. If these go under, you may have no way to get your money back.
Savings: