10 Best Online Banks Of February 2024 (2024)

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.

• 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

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.

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 reimbursem*nts 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.

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).

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:

1. Visit the bank or credit union’s website, or launch its mobile app.
2. Find the type of bank account you want to open, and fill out an application for a new account.
3. Verify your identity and provide other required information, which may include your address, phone number and email.
4. Make a minimum deposit, if required.
5. Wait for your deposit to clear, which may take a few days. Then, start using your new account.

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.

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

• 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 reimbursem*nts 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 reimbursem*nts 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.

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.

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