Alongside Mississippi to the west sits the southern state of Alabama, which also shares a small portion of the Gulf coast as well as plenty of inland territory. The state is bordered by Tennessee, Georgia, Florida and Mississippi. Alabama is a state that marries its old agrarian history with modern industry and innovation. Long known for cotton and other agriculture, Alabama today is powered by a diverse economy that includes automotive manufacturing, aerospace and defense, steel and iron production, chemicals, forestry and agriculture. The state has become one of the nation's leading automotive-exporting states, home to assembly plants for Mercedes-Benz, Hyundai, Honda and Toyota, while Airbus builds commercial jets in Mobile and Huntsville anchors a major aerospace and defense corridor. Alabama is also rich in early American history and natural beauty, with much of the state still relatively undeveloped.

Major employers across Alabama include Redstone Arsenal and the surrounding defense and space community, the University of Alabama at Birmingham (UAB) and UAB Hospital, Maxwell Air Force Base, and state and local government, alongside a broad mix of health care, education, technology, banking and industrial employers. In recent years the state's gross domestic product has been well over $250 billion.

Here are two interesting facts about the state: the city of Huntsville is known as the rocket capital of the world, and MLB Hall of Famer Willie Mays was born in Alabama in 1931.

The Cities of Alabama

With roughly 5.2 million residents based on recent U.S. Census Bureau estimates, Alabama is one of the more populous Southern states. Based on those estimates, Alabama's largest cities are approximately:

  • Huntsville (about 222,000) - now the state's largest city
  • Mobile (about 203,000), which grew past 200,000 following a 2023 annexation
  • Birmingham (about 198,000)
  • Montgomery (about 197,000), the state capital
  • Tuscaloosa (about 111,000)

Population estimates shift from year to year and vary slightly by source, so treat these figures as approximate. If you are researching a specific community in Alabama, we recommend checking current data from an official source such as the U.S. Census Bureau or your local city and county government.

Banks and Credit Unions in Alabama

A number of financial institutions are headquartered in Alabama. These include:

  • Regions Financial Corporation (Birmingham)
  • ServisFirst Bank (Birmingham)
  • Bryant Bank (Tuscaloosa)
  • AuburnBank / Auburn National Bancorporation (Auburn)
  • Redstone Federal Credit Union (Huntsville)
  • Avadian Credit Union (Hoover)

These are only some of the institutions based in the state. Many other banks and credit unions - from large national lenders to regional and community players - also operate branches throughout Alabama. That means residents have plenty of choices, but with more choices comes the responsibility of shopping around for the best deal.

Comparing Bank Rates in Alabama

If you live in Alabama, you may be wondering how to figure out which bank or credit union will offer you the best price on a home loan, a loan for your car, a certificate of deposit or a savings account. That's where we come in - compare offers from multiple banks, credit unions, lenders, and more using RateZip's financial search engine. It's easy to get started.

Finding a Mortgage in Alabama

If a new home in the south is on your radar, RateZip.com can help you compare current mortgage rates for property in Alabama. In recent years the typical home value in Alabama has been around $230,000 according to Zillow, though prices vary widely by metro and neighborhood and change over time. Homeowners and prospective buyers can choose from a wide variety of home loan products, such as:

  • 15, 20, and 30 year fixed rate mortgages
  • Adjustable rate mortgages (ARMs)
  • FHA, VA and USDA loans
  • Jumbo mortgages for larger loan amounts
  • Refinance options

First-time and moderate-income buyers may also want to explore down payment and closing-cost assistance through the Alabama Housing Finance Authority (AHFA), including its Step Up program. Because mortgage rates move constantly, we recommend comparing up-to-date quotes from several lenders rather than relying on any single advertised rate.