Best Online Banks – Our Top Picks
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When I opened my first online bank account a decade ago, there weren’t many options. I simply chose it because it offered a nice opening bonus, plus promised interest rates significantly higher than the small regional bank I used. It’s served me well, and now they have an app and some fun tools to help me improve my personal finances.
Here’s a look at the best online banks and how they stack up against one another. As you look through them, consider what you need most in a bank. Here are some questions to ask yourself:
- Would you like to be able to open a money market account, CD, or other investments?
- Are you looking for a bank that can also handle an auto loan?
- Do you need unlimited refunds of ATM fees?
Jump To
Overview of the best online bank accounts
Online Bank | Best For |
Axos Bank | ATM access |
Ally Bank | Overall |
Chase | All-in-one banking needs |
Capital One 360 | Hybrid banking |
Discover Bank | Low-fees |
Barclays | CDs |
Chime® | Building credit |
CIT Bank | Full-service banking |
Citi | User-friendly app |
Synchrony Bank | Customer service |
EverBank | Competitive rate guarantee |
Bank of America | Nationwide banking |
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Best online banks
Here’s a deeper dive into what these online banks offer customers.
Axos Bank
From simple banking needs to a small business's more complex financial needs, Axos has you covered. A trusted name in banking since 2000, they offer 24/7 customer service (including major holidays). They offer a variety of checking and savings accounts plus business loans, investment accounts, personal loans, and mortgages.
Axos has $0 overdraft fees and no minimum balance requirement. Their ATM network spans 91,000 ATMs and offers unlimited reimbursement of domestic ATM fees incurred at out-of-network ATMs.
The mobile banking app makes it easy to manage your finances on the go. You can even send money to family and friends instantly with just the recipient's phone number or email address. Axos employs state-of-the-art technology to keep your money, and data, secure, including automatically logging you out after five minutes of inactivity.
Parents like myself will appreciate the First Checking account for teens. It’s essentially a joint checking account with a parent but allows your child to practice money management skills while they still have a parent guiding and overseeing them.
Ally
Ally is a full-service online bank with various features, low fees, and excellent customer service. I’ve personally used Ally for over a decade and have been very pleased with them for my daily banking needs.
There’s no minimum balance to open checking or savings accounts. There’s no monthly fee, nor is there an overdraft fee. You have access to more than 43,000 ATMs nationwide, and if you go out-of-network, you’ll be reimbursed up to $10 per month for these fees.
Some newer features that Ally has included are savings “buckets” that help you to allocate your money towards separate savings goals. The round-up feature helps you stash away small amounts of money by rounding up purchases. When you use your debit card to pay $4.25 for your morning coffee, your account will be debited $5.00 and the extra $0.75 will be transferred to your savings account.
While Ally has no brick-and-mortar locations, you can deposit checks via the mobile app. The app also makes it easy to initiate transfers between other bank accounts that you have. Ally can handle your other financial needs, including mortgages and robo-investing.
Chase
A national bank that’s a household name, Chase has several online checking and savings accounts. Since Chase has physical branches across the USA, account holders in these areas may find Chase a good option since Chase also offers home and auto loans, plus special accounts for kids and college students.
The drawback with Chase accounts is that they do not offer a high APY. The current interest rate for savings accounts is 0.01% APY. So, while your money can earn interest, it won’t be as much as if you choose another bank. Chase does make it easy to deposit money; you can deposit checks via the mobile app or drop checks and cash off at most ATMs.
Monthly service fees are assessed on most accounts unless you meet specific account balance or direct deposit requirements. They do not offer reimbursement of ATM fees, but with more than 16,000 in-network ATMs and 4,700 branches, there’s sure to be a free one near most people.
I think Chase is best for those who already use Chase for other banking products, like their car loan or business accounts. This may make it easier to avoid fees, and you’re already familiar with the bank and may want to stay on as a loyal customer.
Capital One 360
A hybrid of brick-and-mortar branches and online banking, Capital One offers several options for your (and your teens) banking needs. In addition to interest checking accounts and savings accounts, Capital One offers auto loans, credit cards, and business banking services.
In addition to no monthly fees, there are no overdraft fees. Capital One has more than 70,000 ATMs in the network, so there’s likely one near you. Additionally, there are no foreign transaction fees.
The mobile app lets you bank 24/7, and notifications alert you to any activity, including when your paycheck lands in your account. You can even have access to the money up to two days early. You can do so when depositing cash at any CVS location if no Capital One bank or Cafe is nearby.
Discover Bank
A trusted name in credit cards, Discover now offers online banking and various loans. With Discover, you get fee-free mobile banking with nationwide ATM access to over 60,000 ATMs. There are no minimum deposits, monthly maintenance fees, or overdraft fees.
The checking account comes with a cashback debit card, which allows you to earn 1% cash back on the first $3,000 spent each month. For anyone who prefers debit to credit, this is a great way to earn more in your high-yield savings account. However, the bank is not accepting applications for a new debit card.
With the Discover mobile app it’s easy to do your banking without going to a physical location or checking your credit score. You can also freeze your debit card from the mobile app, which is handy if you lose (or misplace) your card.
Barclays
A famous name in wealth management, Barclays also offers an online savings account plus CDs with long- and short-term lengths. No minimum opening deposits exist, and current interest rates are above the industry national average. Interest in CDs is compounded daily, making this a great place to keep your CD ladder.
You can link your account to three other bank accounts to facilitate transfers in and out of your Barclays account. The mobile app lets you deposit checks and transfer money between banks.
I think Barclays is an ideal account if you’re looking for a place to keep long-term savings or your emergency fund, but don’t want it at your main bank. With an online bank account, it’s accessible, but it will take a couple of days to receive the transfer. This is helpful if you’re afraid you’ll be tempted to spend money just sitting in your account.
Chime
This is banking at its finest, especially for someone looking to build their credit score. Chime is a fintech company partnered with The Bancorp Bank, N.A., and Stride Bank, N.A., to offer financial services and FDIC insurance. They pride themselves on being different – and less expensive – than traditional banks.
Chime makes banking simple with its three accounts: checking, savings, and credit builder. With the savings account, you can automate transactions and receive access to your direct deposit paycheck up to two days early. You can use over 60,000 ATMs for free, plus there are no overdraft fees or minimum balancer requirements.
The credit builder feature appeals to young people, unbanked, and anyone with a poor credit score. Essentially, you move money to your Credit Builder account and use it as a credit card. Your activity is reported to the credit bureaus, and since you can’t spend more than what is available, it’s very low-risk since you won’t go into debt. The worst you can do is to buy things you don’t really need.
The Chime app gives you 24/7 access to your money and customer support. You can send money to family and friends instantly via the app. Fellow Chime users will receive it immediately, while others will receive it in their bank account. Even better is that there aren’t any cash-out fees to do this.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
CIT Bank
With a history dating back to 1908, CIT Bank is now a division of First Citizens Bank but upholds the strong reputation that it’s built up over the last century. A full-service award-winning bank, CIT has a variety of personal banking products, as well as commercial and business ones.
The eChecking account comes with a debit card and up to $30 a month in ATM fee reimbursement if you are charged a fee for using another bank’s ATM. The savings account offers a couple of tiers of interest rates. You can qualify for the higher one by making a monthly deposit of $100 or more. Most CIT accounts require at least $100 to open and various requirements depending on the interest rate.
CIT offers several types of CDs, including an 11-Month No Penalty CD ($1,000 to open), which allows you to withdraw your money early, if necessary, while still receiving interest. One great thing about CIT is that interest is compounded daily, so your savings will grow faster than banks that only compound monthly.
Citi
Citi is a solid option for easy access to ATMs and additional banking products like personal loans, CDs, and investing. However, if it’s simple than you want, or if you aren’t yet at the stage where it’s easy to keep $1,000 in your account at all times to avoid fees, alternative online banks will meet your financial needs better.
As I mentioned, to avoid fees with Citi, you must always keep large amounts of money in your account. This may be easier for a savings account, but many people don’t keep that large of a buffer in their checking accounts. Fees go as high as $25 per month, so if you don’t qualify for a waiver by meeting additional requirements, look elsewhere.
For those who do bank with Citi, you have access to the largest ATM network, with over 65,000 fee-free ATMs nationwide. Depending on your banking package, you may be eligible for ATM fee reimbursement when you use an out-of-network machine.
The Citi app is user-friendly and makes it easy to pay bills, manage your finances, and send money with Zelle. The notifications are helpful; you’ll be alerted when the money hits your account or a bill gets paid. You can also reach customer service seven days a week.
Synchrony Bank
You may be familiar with Synchrony as an issuer of private label credit cards (like Old Navy, Sam’s Club, and Amazon), but did you know they offer online banking services? They don’t have as many services as the competition, but they have solid products and accessible customer service.
For starters, they do not have checking accounts or ATM access. The high-yield savings account offers competitive rates with no account minimums.
Certificates of Deposit are available from three to 60 months, with varying interest rates. The 15-Day Best Rate Guarantee promises that if you fund your account within 15 days of opening it, you’ll get the best interest rate, even if it’s higher when you fund it. Synchrony also offers money market accounts plus an IRA CD, which offers the simplicity of a CD with the tax advantages of a retirement account.
The mobile app means that you can manage your money from anywhere, anytime. Customer service is available on Twitter, live chat, or by phone.
EverBank
Opening a basic checking or savings account with EverBank only takes five minutes and a $100 opening deposit. Your account has no monthly or overdraft fees, so even if you make a mistake, you’re not out a hefty chunk of change. In addition to personal banking, EverBank offers investing, business, and commercial products.
When you have a checking account with EverBank, you have access to over 80,000 free ATMs. But they know you may not always be near one, so you can get up to $15 in ATM fee reimbursement monthly. Customers who keep a minimum of $5,000 in their account get unlimited reimbursement.
The EverBank Yield Pledge promises that you will get a competitive rate in the top 5% of rates nationwide for select accounts when banking with its Yield Pledge Money Market account (4.75% APY) or EverBank Performance Savings (5.15% APY). The mobile app gives you easy access to your bank account to pay bills, withdraw, and transfer funds to other accounts. Customer service is available by phone and email seven days a week.
Bank of America
It’s no surprise that the second largest bank in the USA has a few online banking products, but what is surprising is how few ATMs customers can access, as well as the monthly fees that are assessed if you don’t meet the balance or deposit requirements. A checking or savings account with Bank of America is best for someone who can easily meet said requirements.
Students under 25 can get a fee waiver, but for everyone else, you’ll pay a $4.95 monthly fee for your checking account unless you qualify for a fee waiver. Bank of America has tiered interest rates but are quite low, with the highest tier currently earning 0.04% APY. Overdraft fees are $10, but you can avoid them if your BOA savings account is connected with Balance Connect.
Savings accounts require a minimum deposit of $100 to open. The Keep the Change program helps you add to your savings account by rounding up your debit card purchases to the nearest dollar. So, a $44.60 purchase at Target would be rounded up to $45, and the extra $0.60 would be transferred to your savings account. This is nice because it can boost your savings by small amounts, making reconciling your account easy with round numbers.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Summary of the best online banks
Here’s how these online banks stack up against each other.
Bank | Checking and Savings | Monthly fees | Savings APY | ATM reimbursement |
Axos Bank | Both | $0 | 0.61% | Unlimited |
Ally Bank | Both | $0 | 4.00%/minimum balance of $5,000 | $10/statement |
Chase | Both | $12* | 0.01% | No |
Capital One 360 | Both | $0 | 4.30% | No |
Discover Bank | Both | $0 | 4.00% | No |
Barclays | Savings only | $0 | 4.35% | No |
Chime | Both | $0 | 2.00% | No |
CIT Bank | Both | $0* | 4.95% | $30/month |
Citi | Both | $10-30* | 4.05% | Special requirements |
Synchrony Bank | Savings only | $0 | 4.50% | $5/month |
EverBank | Both | $0 | 5.15% | $15/month |
Bank of America | Both | $4.95* | 0.01% | No |
*Certain requirements need to be met to qualify for a fee waiver.
FAQs
Which is the best online bank?
The best online bank will depend on what’s important to you. If you travel a lot, you might focus on the fee-free ATMs whereas someone who’s only using their online bank account for savings, might prioritize a higher interest rate. I personally like Ally because it offers interest checking and the mobile app makes it convenient to deposit checks and handle banking on the go.
Are online banks safe?
Generally speaking, online banks are safe. Before opening an account with one, you should check to ensure it offers the following features to keep your personal information, and hard-earned money, safe.
How do I deposit checks or cash into an online bank account?
Most, but not all, online banks will allow you to deposit cash into your account via an ATM or at a partner business. Checks can generally be deposited via the bank’s mobile app or at an ATM. Before you deposit your check via the app, reread all of the directions so that you do it correctly and don’t cause your deposit to be delayed. Also, it can take up to five days for your account to be credited.
Why should you use online banks
Online banks are great due to their convenience and the extra functions they offer. I’m always surprised when people say they don't use or trust online banks. There’s always a potential security risk with anything we do online, but a little extra vigilance will protect you.
I love that I can access my money no matter where I am, deposit checks into my account at 9 p.m., and avoid going to the bank altogether. An online savings account at a bank other than your local community is a great option for your emergency fund. You can keep it out of sight while earning interest.
The bottom line
Whether you’re looking for your first online bank account or want to switch to a different one, there’s a bank that’s right for you. There’s also nothing wrong with having more than one online bank account. Let’s say you want ATM access but also a high-yield savings account. You may want to open two accounts to take advantage of the best of each.
Opening most online bank accounts only takes a few minutes and can be done anywhere. To protect your data, choose a complex password and change it regularly. Do the same with your debit card and exercise caution when using ATMs.
Finally, be sure to make use of the mobile app. It’s more convenient than logging in on your computer and makes, dare I say it, banking fun.
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Writer
Charlotte Edwards is an educator-turned-freelance writer based in Beijing, China. She writes personal finance and parenting content for both digital and print publications around the world.
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