Best Online Banks of February 2024
Best Online Bank for Low Fees and High APY
Quontic Bank
On Quontic Bank's Website
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM
90,000+ ATMs nationwide
Why We Picked It
We chose Quontic Bank as one of the best online banks for its low fees and low minimum deposit requirements as well as its generous APYs and rewards.
In addition to its traditional banking products—High Interest Checking, High Yield Savings, money market accounts and CDs—Quontic offers another innovative account. The bank has a Cash Rewards Checking account that pays up to 1.00% cash back on qualifying debit card transactions.
With Quontic, you’ll get access to 90,000+ surcharge-free ATMs throughout the U.S. and all the features you may expect from a digital bank, including 24/7 access to online banking and a mobile app. Customer service is available via live chat, email and phone.
Read our full Quontic Bank Review.
Pros & Cons
- Offers cash-back checking and interest checking
- Mobile and online banking
- Access to more than 90,000 surcharge-free ATMs
- Designated as a CDFI
- Full-service bank
- May find higher rates are available from some banks and credit unions
- Customer service isn’t available 24/7
Details
Quontic Bank offers one savings account, two checking accounts, a money market account and five CDs with terms ranging from six months to five years.
Best Online Bank for Avoiding Fees
Discover® Bank
4.3
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM
ATM Network
60,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM
60,000+ ATMs nationwide
Why We Picked It
Discover® Bank wins best online bank for avoiding fees thanks to its zero-fees policy: no monthly maintenance fees, no insufficient funds fees and no out-of-network ATM fees. There’s also no fee for stop-payment orders, returned items or excessive withdrawals. Plus, Discover offers a full suite of banking products and services, including a high-APY savings account and rewards checking account.
The bank’s checking account earns 1% cash back on up to $3,000 in debit card purchases each month. See website for details. And customers have access to an extensive ATM network.
Discover also offers mobile banking—the app gets high scores on the App Store and Google Play. Customer service is available 24/7, every day of the year.
Read our full Discover Bank Review.
Pros & Cons
- Charges very few fees
- Competitive APYs and cash back earnings
- Highly rated mobile app
- Extensive ATM network
- 24/7 customer service
- Higher rates are available from other banks and credit unions
- Doesn’t pay interest on checking account
Details
Discover Bank offers a cash back checking account, a high-yield savings account, a money market account and CDs with terms from three months to 10 years. The mobile app is highly rated on the App Store and Google Play.
Best Online Bank for ATM Access
Axos Bank
Earn a bonus up to $300 when you use code AXOS300 to open a Rewards Checking account by June 30th, 2024.
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM
91,000+ ATMs nationwide
Why We Picked It
Axos Bank is our top choice for best online bank for ATM access because it offers a network of approximately 91,000 ATMs in the U.S. and unlimited domestic ATM fee reimbursements at out-of-network ATMs.
Customers can choose from four different fee-free checking accounts, including Rewards Checking, which offers one of the highest checking APYs, and CashBack Checking, which earns you 1% cash back on all signature-based purchases. It also offers relatively high APYs on savings deposits, with reasonable minimum deposit requirements.
Plus, Axos offers 24/7 customer service (including Thanksgiving Day and Christmas Day) via phone and secure online messaging. The site also has a live chat feature available during regular business hours.
Axos does well on the mobile banking front, too. The bank’s app is highly rated on the App Store and Google Play and allows users to take care of basic banking needs on the go.
Read our full Axos Bank Review.
Pros & Cons
- Competitive interest rates
- Low fees and unlimited ATM fee reimbursement
- Highly rated mobile app
- 24/7 customer service
- Full-service bank
- Higher rates are available from some banks and credit unions
- Below-average CD rates for an online bank
Details
Axos offers five different checking accounts, one savings account, one money market account and CDs with terms that range from three months to five years.
Best Online Bank for Savings Tools
Ally Bank
4.2
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM
ATM Network
43,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM
43,000+ ATMs nationwide
Why We Picked It
We chose Ally as one of the best online banks for its competitive rates, low minimum deposit requirements, unique online savings tools and lack of monthly maintenance fees. As a full-service online bank, Ally offers an array of high-APY, low-fee checking and savings products. It has an extensive ATM network and reimburses up to $10 per statement cycle for fees charged at out-of-network ATMs.
Ally customers also get access to the bank’s savings tools. With Ally’s savings account, you can create “buckets” that allow you to set 10 different savings goals within a single account. The bank also has a “round ups” feature that transfers the spare change from your transactions into your savings account. And the bank’s “surprise savings” feature analyzes your Ally checking account for money that’s safe to save and transfers it to your savings account automatically.
Ally Bank earns high customer satisfaction scores, with customer service available 24/7 by phone. You can also get your questions answered via live chat, email and regular mail.
Ally’s mobile app, available on iOS and Android, gets high scores in the App Store and Google Play.
Read our full Ally Bank Review.
Pros & Cons
- Offers helpful savings tools
- High customer service satisfaction
- 24/7 customer service availability
- Low to no fees and minimums
- Out-of-network ATM fee reimbursement up to $10 per month
- Higher rates are available from other banks and credit unions
- No way to directly deposit cash
Details
Ally Bank offers a savings account, interest-checking account, money market account and CD terms from three months to five years. It also offers a raise your rate CD with terms of two and four years and a no-penalty CD with a term of 11 months.
Best Online Bank for Combined Checking and Savings
nbkc bank
4.2
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM
ATM Network
37,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM
37,000+ ATMs nationwide
Why We Picked It
We included nbkc bank because it’s a full-service bank that offers interest-bearing accounts and keeps fees to an absolute minimum. There are no monthly maintenance fees, overdraft fees, minimum balance fees or foreign transaction fees. Incoming domestic wire transfers are free as well.
nbkc bank Everything Account is an interest-bearing checking and savings account combined into one. You can spend, save and pay bills from a single account. It comes with an extensive ATM network and reimburses up to $12 per month for out-of-network ATM fees.
Customer service is available by live chat, phone or email. And you can access your accounts on the go with the bank’s mobile app.
Read our full nbkc bank Review.
Pros & Cons
- Offers a combined checking and savings account
- Low to no fees
- Out-of-network ATM fee reimbursement up to $12 per month
- High customer service satisfaction and live chat tool
- Full-service bank
- Higher rates are available from other banks and credit unions
- Not designed for those who want separate checking and savings accounts
Details
nbkc bank offers a combined checking and savings account, a money market account and CD terms from three months to five years. It also has an add-on CD that has a term of one year.
Best Online Bank for Short-Term Goals
iGObanking
4.2
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, MMAs, CDs
Fees
No monthly or ATM, $35 overdraft
ATM Network
55,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, MMAs, CDs
No monthly or ATM, $35 overdraft
55,000+ ATMs nationwide
Why We Picked It
We chose iGObanking as one of the best online banks due to its wide range of products offering competitive APYs without monthly fees—making it a good place to stash cash for near-term financial goals. This bank also boasts an extensive surcharge-free ATM network and rebates up to $15 per month in domestic ATM fees that other banks charge.
The bank’s accounts are accessible online and through its mobile app, available for iOS and Android. Customer service is available seven days a week by phone or email.
Read our full iGObanking Review.
Pros & Cons
- Competitive yields across products
- Large surcharge-free ATM network
- Reimburses third-party ATM fees up to $15 per statement cycle
- Customer service is available seven days a week
- Higher rates are available from other banks and credit unions
- $35 overdraft fee
Details
iGObanking offers a checking account, a savings account, a money market account and traditional CDs with terms of 3, 9, 36 and 48 months. It also offers the GiftsforBanking CD, which offers a gift of your choice when opening a two-, three- or five-year CD with a deposit of $25,000 or more.
Best Online Bank for High Balances
Salem Five Direct
4.1
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, CDs
Fees
No monthly or ATM, $35 overdraft
ATM Network
55,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, CDs
No monthly or ATM, $35 overdraft
55,000+ ATMs nationwide
Why We Picked It
We picked Salem Five Direct as a top choice—particularly for high balances—because it insures balances without limitation through a combination of insurance safeguards. In addition to Federal Deposit Insurance Corporation (FDIC) coverage of up to $250,000, all deposits above that amount are covered by the Massachusetts Depositors Insurance Fund (DIF). This differs from many other banks, which generally limit deposit insurance to the FDIC maximum of $250,000 per depositor, per ownership category.
Salem Five Direct doesn’t charge monthly fees or out-of-network ATM fees. It also reimburses fees that other banks charge, up to $15 per statement cycle.
Like the other online banks on this list, Salem Five Direct’s mobile app is highly rated. Customer service is available via live chat, online messaging, email and phone.
Read our full Salem Five Direct Review.
Pros & Cons
- Unlimited insurance coverage on deposits
- Competitive APYs
- Reimburses third-party ATM fees up to $15 per statement cycle
- Highly rated mobile app
- Higher rates are available from other banks and credit unions
- $35 overdraft fee
- Steep $10,000 minimum deposit required for Salem Five Direct Certificates of Deposit
Details
Salem Five Direct offers a checking account, a savings account and CDs with terms from 12 months to 36 months.
Best Online Bank for Guaranteed Competitive Rates
EverBank
4.0
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM
ATM Network
80,000+ ATMs nationwide
Learn More
Read Our Full Review
Checking, MMAs, CDs
No monthly, overdraft or ATM
80,000+ ATMs nationwide
Why We Picked It
EverBank (formerly TIAA Bank) earns a top spot for its guaranteed competitive rates: The bank’s Yield Pledge promise states that the interest rate you earn will be among the top 5% of “competitive accounts.” This is based on accounts from the 10 largest banks and thrifts in 10 large U.S. markets. While the bank’s Yield Pledge doesn’t mean you’ll earn the highest rate around, you’ll know that you’re at least earning a competitive rate compared to traditional financial institutions.
In addition, the bank charges no monthly fees on its accounts, no overdraft fee from a linked EverBank account and no ATM fees. EverBank also automatically reimburses up to $15 each month for third-party ATM charges. Keep a minimum balance of $5,000 or more in your checking account and you’ll get unlimited ATM reimbursements.
EverBank’s mobile app is highly rated. Customer service is available seven days a week via phone and email.
Read our full EverBank Review.
Pros & Cons
- Offers Yield Pledge promise
- No monthly, overdraft or ATM fees
- Unlimited out-of-network ATM fee reimbursement with a $5,000 minimum balance
- Highly rated mobile app
- Customer service is available seven days a week
- You can find higher rates at other banks and credit unions, despite Yield Pledge
- No savings account
Details
EverBank offers a checking account (Yield Pledge Checking), money market account (Yield Pledge Money Market), basic CDs, a bump-up CD and what it calls an IntraFi CD, a CD that offers expanded FDIC insurance on deposits.
Best Online Bank for Parking Cash
Vio Bank
3.9
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, MMAs, CDs
Fees
No monthly, overdraft or ATM
ATM Network
No ATM network
Learn More
Read Our Full Review
Savings, MMAs, CDs
No monthly, overdraft or ATM
No ATM network
Why We Picked It
We selected Vio Bank as one of the best online banks for its competitive interest rates, low fees and relatively easy-to-meet minimum deposit requirements across savings, money market and CD accounts. Notably, it doesn’t offer a checking account, ATM network or branches, making it a good place for those who want to park cash for growth.
That said, you can still access your deposit accounts through the bank’s highly-rated mobile app and make internal and external transfers. You can also fund your Vio accounts via ACH transfer with an external bank account. And the bank doesn’t charge for incoming or outgoing wire transfers.
Read our full Vio Bank Review.
Pros & Cons
- Competitive APYs
- Low minimum deposit requirements
- Limited access to funds may encourage saving
- No checking account
- Lack of ATM network and branch access could be a negative for some
- $10 fee for excessive transactions
- $5 fee for paper statements
Details
Vio Bank offers a savings account, money market account and CDs with terms from six months to 120 months.
Best Online Bank for Hybrid Banking
Capital One 360
3.9
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, Checking, CDs
Fees
No monthly or ATM, $35 overdraft
ATM Network
70,000+ ATMs nationwide
Learn More
Read Our Full Review
Savings, Checking, CDs
No monthly or ATM, $35 overdraft
70,000+ ATMs nationwide
Why We Picked It
We chose Capital One 360 as a top pick for the best online banks because it’s a unique hybrid of a no-monthly-fee online bank and a brick-and-mortar bank. In addition to 24/7 digital banking and live customer service seven days a week, Capital One offers full-service branches in some states, along with Capital One Cafés. None of Capital One’s banking products require a minimum deposit or minimum balance.
Capital One 360 makes it easy to open and maintain your accounts—whether it’s a savings account, checking account or CD. None of the bank’s products require a minimum deposit or minimum balance. You can access your accounts at any time from anywhere online or via the bank’s highly rated mobile app. And Eno, the bank’s virtual assistant, is available in the mobile app or by text.
At Capital One Cafés, you can get personal support in a coffee-shop atmosphere. Cafés offer certified money coaches, money workshops and assistance with opening and managing Capital One accounts. If you can’t find a Café near you, Capital One also offers full-service branches in some states. Physical locations aren’t something you’ll find with most online banks.
Read our full Capital One 360 Bank Review.
Pros & Cons
- Capital One Cafés, with in-person banking support
- Branch access
- Customer service available seven days a week
- Large ATM network
- No minimum deposit or balance requirements
- $35 overdraft fee
- No money market account
- Capital One Cafés and branches only in select states
Details
Capital One 360 offers a savings account (360 Performance Savings), checking account (360 Checking) and CDs (360 CDs). It also offers a Kids Savings Account and MONEY Teen Checking.
Summary of Best Online Banks 2024
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating - Image | Best For | Products | Fees | ATM Network | Learn More CTA text | Learn more CTA below text | Learn More |
---|---|---|---|---|---|---|---|---|---|---|
Quontic Bank | 4.8 | Best for Low Fees and High APY | Savings, Checking, MMAs, CDs | No monthly, overdraft or ATM | 90,000+ ATMs nationwide | Learn More | On Quontic Bank's Website | |||
Discover® Bank | 4.3 | Best for Avoiding Fees | Savings, Checking, MMAs, CDs | No monthly, overdraft or ATM | 60,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
Axos Bank | 4.2 | Best for ATM Access | Savings, Checking, MMAs, CDs | No monthly, overdraft or ATM | 91,000+ ATMs nationwide | Learn More | On Axos Bank's Website | |||
Ally Bank | 4.2 | Best for Savings Tools | Savings, Checking, MMAs, CDs | No monthly, overdraft or ATM | 43,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
nbkc bank | 4.2 | Best for Combined Checking and Savings | Savings, Checking, MMAs, CDs | No monthly, overdraft or ATM | 37,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
iGObanking | 4.2 | Best for Short-Term Goals | Savings, Checking, MMAs, CDs | No monthly or ATM, $35 overdraft | 55,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
Salem Five Direct | 4.1 | Best for High Balances | Savings, Checking, CDs | No monthly or ATM, $35 overdraft | 55,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
TIAA Bank | 4.0 | Best for Guaranteed Competitive Rates | Checking, MMAs, CDs | No monthly, overdraft or ATM | 80,000+ ATMs nationwide | Learn More | Read Our Full Review | |||
Vio Bank | 3.9 | Best for Parking Cash | Savings, MMAs, CDs | No monthly, overdraft or ATM | No ATM network | Learn More | Read Our Full Review | |||
Capital One 360 | 3.9 | Best for Hybrid Banking | Savings, Checking, CDs | No monthly or ATM, $35 overdraft | 70,000+ ATMs nationwide | Learn More | Read Our Full Review |
Methodology
To create this list, Forbes Advisor analyzed the products and services of 60 online banks, including a mix of large and small online banks and neobanks. We ranked each bank on 12 data points within the categories of product offerings, APY, fees, ATM network, customer experience, digital experience and minimum requirements.
Here’s the weighting assigned to each category:
- Product offerings: 20%
- APY: 20%
- Fees: 20%
- ATM network: 10%
- Customer experience: 10%
- Digital experience: 10%
- Minimums: 10%
Online banks offering the highest APYs and lowest fees across their products rose to the top of the list, as did those with a low minimum deposit and balance requirements and a broad ATM network. Banks with high customer satisfaction and an intuitive digital banking experience also earned higher scores. To appear on this list, the bank must be an online bank with national availability.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Guide to Online Banking
- What Is Online Banking?
- What Are the Benefits of Online Banks?
- How To Choose an Online Bank
- How To Open an Online Bank Account
- Online Banks vs. Traditional Banks
- Who Are Online Banks Best For?
- Recap: Best Online Banks of 2024
- Banks We Monitor
What Is Online Banking?
Online banking is banking conducted virtually, either through a website or mobile app. Rather than going to a branch or ATM to manage your money, you can do so via your laptop or smartphone.
Most traditional banks and credit unions offer online banking services to their customers. The range of services available usually doesn’t differ that much from what you’d find at the best online banks. The difference is that with traditional banking, you also have the option of visiting a branch. With online-only banking, you don’t.
How Does Online Banking Work?
Customers of online banks can initiate transactions online, through a mobile app, by phone or by mail. They also can link online bank accounts with accounts they have at traditional banks, credit unions or other online banks.
Online banking products and services vary by institution. Generally, online banks offer the ability to open accounts, pay bills, transfer funds, deposit checks, view statements and carry out other typical banking tasks. Many also offer access to surcharge-free ATM networks.
What Are the Benefits of Online Banks?
Here are advantages online banks offer that can improve your financial life.
Convenience
One of the chief benefits of online banking is the ability to access and manage your accounts from practically anywhere. You can check your balances, pay bills, transfer money between accounts and even deposit checks remotely. Plus, you can set up notifications and alerts, and if your debit card is lost or stolen, you can log in to your mobile app to deactivate the card immediately. And many online banks still offer ATM access if you need to withdraw cash.
Added Features
Some of the best online bank accounts offer extra features that can help you budget, save and feel more in control of where your money is going. These include:
- Goal trackers
- Automated savings
- Financial calculators
- Budgeting tools
- Person-to-person payments
- Integration with mobile wallet apps
Cost
Online banks have lower overhead costs and tend to charge fewer fees and offer more competitive interest rates, helping you save money. Many of the best banks online charge no:
- Monthly maintenance fees
- Minimum balance fees
- Person-to-person transfer fees
- Incoming wire transfer fees
- Foreign transaction fees
- Overdraft fees
- ATM fees
Some online banks even offer ATM fee reimbursements for any fees charged by out-of-network ATM operators.
Record Keeping
Keeping track of expenses is crucial for creating—and sticking to—a realistic budget. Online banking simplifies that task by letting you review credit and debit transactions at a glance. You can easily filter your account details to look for specific transactions or review purchases made over a certain period.
Other Benefits of Online Banking
Here are some other advantages to online banking:
- It’s easy to open accounts without going to a branch.
- Automatic bill payments save you time and postage.
- There’s no need to wait in line for a teller.
- You can pay bills with no fees.
- Automatic savings deposits can grow your money faster.
- Online banking can integrate with budgeting apps.
- You can monitor your account for fraud from anywhere.
Online banks may use the same level of encryption as brick-and-mortar banks, and they can offer enhanced security features, such as multi-factor authentication. Those measures, along with taking basic steps to protect your online banking security, can keep your account information safe and out of the hands of hackers.
How To Choose an Online Bank
Pro Tip
Online banks don’t have the costs associated with traditional brick-and-mortar institutions. As such, they tend to pass those savings on to customers in the form of lower fees, higher rates and intuitive digital banking products. But not all online banks are the same, and some offer better products and experiences than others.
Here are some other things to consider when choosing an online bank:
- Fees. Pesky fees can quickly eat into your overall bank balance. Look for an online bank that keeps fees of all types to a minimum. That includes monthly fees, overdraft fees and ATM fees. It’s even better if the bank reimburses for third-party ATM charges. Analyze your banking behavior to figure out which fees you need to worry about most. You can often avoid fees with the right bank.
- APYs. If you’re looking to get the most for your money, find a bank that pays a competitive APY on its financial products. Online banks tend to pay higher rates, so do some comparison shopping to get the best rates you can.
- Minimums. Lower minimum deposit and balance requirements generally make it easier to maintain an account. Find an online bank with minimum requirements that meet your financial comfort level.
- Products. The online bank you choose depends heavily on the products you need. Some online banks are full-service financial institutions, offering checking, savings, money market accounts, CDs and other products. Others limit their offerings.
- ATM network. If having access to cash is important, look for an online bank that offers an extensive surcharge-free ATM network. Check the bank’s site to make sure there are ATMs close to your location or in the areas where you travel most.
- Customer experience. Online banks typically don’t offer branch access, and if they do, it’s often limited. That’s why it’s essential to keep customer support in mind when shopping for an online bank. Look for a bank that offers easily accessible customer service representatives or online chat alternatives.
- Digital banking experience. Convenience is crucial in the world of digital banking. With an online bank, your primary interactions occur via the bank’s website and mobile app. The best online banks provide a simple online interface and highly rated mobile apps for banking on the go. Check out reviews of the mobile app on the App Store and Google Play.
- Safety. Look for a bank insured by the Federal Deposit Insurance Corporation (FDIC), which provides up to $250,000 in insurance per depositor, per bank, for each account ownership category, in the event of a bank failure. At credit unions, make sure the account is insured by the National Credit Union Administration (NCUA).
How To Open an Online Bank Account
You can open a bank account online via your chosen bank or credit union’s website or mobile app. From there, you’ll generally follow the same steps that you would to open a bank account at a branch. Here’s a typical step-by-step process for opening a bank account online:
- Visit the bank or credit union’s website, or launch its mobile app.
- Find the type of bank account you want to open, and fill out an application for a new account.
- Verify your identity and provide other required information, which may include your address, phone number and email.
- Make a minimum deposit, if required.
- Wait for your deposit to clear, which may take a few days. Then, start using your new account.
Online Banks vs. Traditional Banks
Online Banks | Traditional Banks |
---|---|
|
|
Online banks operate completely online and usually don’t maintain branches. Customer service is often available 24/7 through their websites, mobile apps and phone lines. Because these banks lack the overhead cost of operating physical branches, they tend to charge fewer fees, and they may offer higher rates on deposit accounts. That said, many online banks have more limited account options and may not offer extensive lending and investment services.
Traditional banks offer a full range of financial services to consumers, such as checking accounts, savings accounts, loans and investment services. They also operate branches for people who prefer to do their banking in person. However, most traditional banks offer negligible interest rates on deposit accounts and may charge steep monthly account maintenance fees.
Who Are Online Banks Best For?
Online banks are best suited to:
- People who are comfortable doing all their banking online or through a mobile app
- Consumers looking to earn higher interest rates than those offered by brick-and-mortar banks
- Customers looking to avoid fees or pay low fees
Recap: Best Online Banks of 2024
- Quontic Bank: Best for Low Fees and High APY. We rated Quontic as one of our best because it offers high-interest checking and savings accounts as well as a rewards checking account, all with no monthly fees.
- Discover® Bank: Best for Avoiding Fees. Discover has a zero-fee policy, which means no monthly fees, no overdraft fees and no ATM fees.
- Axos Bank: Best for ATM Access. Axos Bank made the list thanks to its network of over 91,000 fee-free ATMs and unlimited domestic ATM fee reimbursements at out-of-network ATMs.
- Ally Bank: Best for Savings Tools. Ally Bank offers unique savings tools on its savings account, such as savings buckets to categorize your funds and the ability to round purchases up to the nearest dollar and transfer the spare change to savings.
- nbkc bank: Best for Combined Checking and Savings. The Everything Account at nbkc bank is an all-in-one account that earns interest and offers ATM access with almost no fees.
- iGObanking: Best for Short-Term Goals. With a long list of products, a large fee-free ATM network, third-party ATM fee reimbursements and no monthly fees, iGObanking is one of the best choices for your spending money and short-term savings.
- Salem Five Direct: Best for High Balances. Salem Five Direct won best online bank for high balances because it offers insurance on balances with no limitations, whereas most banks offer FDIC insurance on balances up to $250,000.
- EverBank: Best for Guaranteed Competitive Rates. EverBank ranked highly because it promises to offer rates comparable to those offered by the top 5% of competitive accounts.
- Vio Bank: Best for Parking Cash. Vio Bank made the list because its savings account, money market account and CDs all offer some of the best rates with minimal fees.
- Capital One 360: Best for Hybrid Banking. As a hybrid online-branch bank, Capital One 360 is one of the best because it offers the high rates and low fees of online banks while still providing branch access for those who prefer to bank in person.
Banks We Monitor
Our research is based on information from the following financial institutions: Acorns, Affinity Federal Credit Union, Affirm, Albert, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, Andigo Credit Union, Apple Federal Credit Union, Armed Forces Bank, Aspiration, Axos Bank, BancorpSouth Bank, Bank of America, Bank OZK, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bask Bank, , BBVA, BECU, Bethpage Federal Credit Union, Betterment, Blue Federal Credit Union, BlueVine, BMO Harris, Bread Financial, Brex, BrioDirect Banking, Cadence Bank, Caliber Home Loans, Capital One, CFG Community Bank, Charles Schwab Bank, Chase, Chevron Federal Credit Union, Chime®, CIBC Bank, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Consumers Credit Union (MI), Copper, Credit Union of Denver, Current, Dave, Digital Federal Credit Union, Discover, Dollar Savings Direct, E*Trade Bank, EBSB, Ellevest, EmigrantDirect, Exchange Bank and Trust, Fairway Independent Mortgage, Fidelity, Fifth Third Bank, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Citizens Bank, First Foundation Bank, First Horizon Bank, First Internet Bank, First National Bank and Trust, First National Bank of America, Fitness Bank, FNBO Direct, Freedom Mortgage, Georgia’s Own Credit Union, GoBank, Golden1 Credit Union, Greenlight, Greenwood Credit Union, GTE Financial, Hanscom Federal Credit Union, Heritage Bank, HSBC, HSBC Direct, Hughes Federal Credit Union, Huntington Bank, Huntington National Bank, IBERIABANK, Ideal Credit Union, iGoBanking, Incredible Bank, Interactive Brokers, Investors eAccess, KeyBank, Kinecta Federal Credit Union, La Capitol Federal Credit Union, LendingClub, Lili, Limelight, Live Oak Bank, LoanDepot, M&T Bank, MAC Federal Credit Union, MainStreet Bank, MainStreet Bank (2), Marcus by Goldman Sachs, Memory Bank, Mercury, Michigan State University Federal Credit Union, My Banking Direct, My eBanc, MySavingsDirect, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, nbkc Bank, Northern Bank Direct, Northpointe Bank, Novo, Nuvision Federal Credit Union, One, Pacific National Bank, Paramount Bank, Pen Air Federal Credit Union, PenFed, Personal Capital, PNC Bank, Popular Direct, Presidential Bank FSB, Prudential, PSECU, Purepoint Financial, Quicken Loans, Quontic, Quorum Federal Credit Union, Redneck Bank, Regions Bank, Relay, Rising Bank, Robinhood, SalemFiveDirect, Sallie Mae Bank, Santander, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SFGI Direct, Simple, SmartyPig Bank, SoFi, Spectrum Credit Union, State Bank of Texas, State Department Federal Credit Union, State Farm Bank, Step, SunTrust Bank, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Ameritrade, TD Bank, Texas Capital Bank, EverBank, TotalDirect Bank, Truist, U.S. Bank, UFB Direct, Union Bank & Trust, United Wholesale Mortgage, USAA, USAlliance Federal Credit Union, Varo Bank, Vio Bank, Virtual Bank, Wealthfront, Webster Bank, Wells Fargo, Zions Bank and Zynlo Bank.
Frequently Asked Questions (FAQs)
What are the best online banks?
The best online banks are those that meet your needs. If you’re happy with your current banking relationship but want to earn more interest on your savings, consider finding an online bank with a competitive high-yield savings account.
If you’re looking to replace your current bank, focus on the overall package. Look for an online bank that keeps fees and minimum requirements low, offers high APYs and provides easy access to your money via ATMs and mobile apps. Seek out a bank with excellent customer service as well.
Are online banks FDIC-insured?
The FDIC insures many online banks. Other online banks are affiliated with brick-and-mortar banks that are FDIC insured. And some offer additional insurance protections through organizations like the Massachusetts Depositors Insurance Fund (DIF).
FDIC-insured accounts are covered up to $250,000 per depositor, for each ownership category, in the event of a bank failure. Before opening a bank account, confirm that the financial institution is FDIC insured. Look for the National Credit Union Administration (NCUA) to insure nationally chartered, and many state-chartered, credit unions for similar amounts.
Do online banks have ATMs?
Online banks usually don’t operate their own branded ATMs, but in many cases, they offer fee-free ATM access through partner banks. ATM networks vary in size depending on which bank you use, with some of the best online banks offering free access to more than 37,000 ATMs nationwide. If you withdraw cash often, check whether your account comes with ATM fee reimbursements, as out-of-network ATM surcharges can quickly add up.
What bank accounts can I open for free?
There’s no such thing as a completely free bank account. All bank accounts come with fees attached in some form. But it is possible to find checking accounts and savings accounts with no monthly maintenance fees.
Is online banking safe?
Generally, online banks are safe. Look for the Federal Deposit Insurance Corporation (FDIC) to insure your accounts. Online banks with FDIC insurance have the same protections as banks with branches.
In many ways, online accounts are safer than traditional bank accounts because of online statements and the focus on digital transactions instead of paper checks. Avoiding paper statements and checks eliminates an opportunity for fraud that many thieves take advantage of.
How do you get a bank statement online?
You can retrieve your bank statements by logging into your account and navigating to the statements page of your bank’s website.
Why is my online bank account locked?
Online bank accounts can become locked for a few reasons. Banks can freeze them if incorrect credentials, such as a username or password, are entered too many times. Accounts could also become locked if the online bank detects suspicious activity, such as fraud or money laundering. In some cases, your account could be locked if you have too many unpaid debts with creditors or the government.
Why can't I open a bank account online?
You might not be able to open a bank account online if you don’t have certain required documents, such as a government-issued photo ID, U.S. residential address, Social Security number or taxpayer identification number. Additionally, your application might be denied if you’ve had too many negative marks, such as overdrafts or bounced checks, reported to ChexSystems.
How do you deposit cash into an online bank?
If your online bank has an ATM network that allows cash deposits, you can typically deposit cash at an in-network ATM the same way you would with a traditional bank. Some online banks without ATM networks offer cash deposits at certain retailers, though this may result in a fee of up to $5 or more. Many online banks don’t support cash deposits at all but may offer a mobile check deposit feature.
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