The Best Online Checking Accounts
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A checking account is practically a necessity for day-to-day life. Unless you’re walking around with wads of cash in your pocket (which we don’t recommend), then a debit card tied to a checking account can be a safe way to make daily purchases, and you can write checks or transfer money online to pay the monthly bills.
Most big banks offer online banking, and high fees and little or no interest paid on checking accounts are a thing of the past. Many offer a free checking account with fee-free ATMs and low fees and pay an annual percentage yield that beats what traditional banks offer. And these national banks are FDIC-insured financial institutions.
Here are the 10 best online checking accounts, featuring what each does best.
Jump To
Overview of the 10 best online checking accounts
Bank | Best for |
Ally Bank | Mobile app |
Capital One 360 | Customer service |
Chime | Automatic savings |
Charles Schwab Bank | Unlimited ATM rebates |
Axos Bank | Rewards checking |
Chase | Interest checking |
Discover Bank | 1% cash back |
Radius Bank | Rewards checking |
EverBank | Basic checking for beginners |
PNC Bank | Budgeting and financial needs |
10 best online checking accounts
Having an online checking account doesn’t mean you must do all your banking online. You may still need to, or want to, visit a physical branch occasionally. Some of our favorite online checking accounts also have physical offices that customers can visit, though that may not be necessary for everyone’s needs.
Ally Bank
Ally Bank has many great features as an online-only bank. It has no monthly maintenance fee, a minimum deposit isn’t needed to open a bank account, and standard checks are fee-free.
However, one of its best features may be its top-rated online mobile banking app. Ally Bank’s app receives a 4.7 rating out of 5 at the Apple app store and 3.9 out of 5 at the Google Play app store.
Its mobile app offers standard features you’d expect, such as mobile check deposits, money transfers, bill pay, transaction history search, and a locator for nearby ATM access. Its user-friendly interface makes it easy to view various accounts at Ally, such as a savings account, certificate of deposit, or individual retirement account. Stocks can also be traded and tracked on the app.
Ally Bank also has an interest checking account that pays an APY of 0.25%.
Capital One 360
You never realize how much you appreciate good customer service until you need it. Capital One 360 checking covers the basics that many online banks do: no monthly fee and pays 0.10% APY on its checking account, which doesn’t require a minimum balance, among other things.
An area it excels at is strong customer support and service. Start with its ATMs. They’re the best way to withdraw cash from an online checking account if you can’t visit a physical branch.
Capital One has ATMs at its bank branches that can be used for free, of course, but it also offers free access at more than 70,000 ATMs in the Allpoint and MoneyPass networks. Some ATMs can be found at CVS, Target, and Walgreens stores.
A physical check can be deposited through a mobile app, but you may want to do it in person with a teller. Customers can also call bank representatives any day of the week, including evening hours. Online chats and Twitter support are also available.
Chime
Chime is an online-only company that partners with two banks for checking and savings accounts. Accounts are insured by the FDIC.
Chime has a few interesting features. Direct deposit allows you to access your paycheck up to two days earlier than you would with your employer’s scheduled payment date.
That’s nice, but not as nice as its round-up program that automatically grows your Chime savings account. Just use its debit card to buy anything; the cost is rounded up and deducted from your checking account. The amount that’s rounded up is transferred to your savings account. Buy a $4.55 cup of coffee, rounded up to $5. That 45 cents difference is saved for you. It’s not free money, but it’s a small and regular way to save your change and pay yourself each time you use a debit card.
The company’s online checking accounts don’t pay interest. But you get access to over 60,000 fee-free ATMs. Its savings account, however, pays one of the best higher interest rates around, at 2.00% APY.
Charles Schwab Bank
The first thing to know about a Charles Schwab Bank Investor Checking account is that account holders must have a Schwab One brokerage account. If you don’t already have a brokerage account with Schwab, you’ll have to simultaneously open one and link it to your checking account if you want a checking account.
You don’t have to fund or use the brokerage account, but it’s there if you want to be a stock trader. The linked checking account makes transferring money to it and Charles Schwab's financial products easy.
Unlike other online checking accounts, Schwab pays a low, variable interest rate of 0.45% APY. Still, it has no monthly service fees or account minimums.
The Charles Schwab Bank feature we like the most is its unlimited ATM fee rebates apply to cash withdrawals using the Schwab Bank Visa Platinum Debit Card.
Axos Bank
Starting in 2001 with the basic name of Bank of Internet USA, what’s now called Axos Bank was one of the first banks to offer banking services exclusively online.
What it’s well known for now is a reward checking account with no monthly fee and no minimum deposit.
To earn up to 3.30% APY, which is a variable rate, you have to meet three criteria each month:
- Direct deposits of $1,500 or more.
- Use a debit card at least 10 times with a minimum $3 purchase on each debit card transaction.
- Maintain an average daily balance of $2,500 per month in an Axos Invested Managed Portfolios Account.
- Maintain an average daily balance of $2,500 per month in an Axos Invest Self-Directed Trading Account.
- Use your Rewards Checking account to make your full monthly Axos Bank consumer loan payment. Mortgage, personal, and auto loans are eligible.
Chase
It’s rare for a bank to offer money to open a checking account. Chase gives new customers a free checking account for setting up direct deposits.
A $12 monthly service charge can be avoided by doing one of three things:
- Direct deposit of at least $500 per month.
- $1,500 minimum daily balance.
- $5,000 average daily balance.
This checking account doesn’t pay interest. Only three of its accounts — Chase Sapphire Banking, Chase Premier Plus Checking, and Chase Private Client Checking — do, too, at just 0.01% APY.
Discover Bank
Known for cash-back rewards on its credit cards, Discover does the same thing with its rewards checking account.
Discover Bank’s Cashback Debit account pays 1% cash back on spending up to $3,000 in monthly debit card purchases. Maximizing it pays $30 per month or $360 per year. Like the bounty that Chase pays for opening a checking account, this account at Discover Bank pays for keeping an account open at almost double the amount in a year. The company is currently not accepting new applications for Cashback Debit.
Keeping a Discover Bank Cashback Debit account open is easy, too, because there are no fees. There’s no monthly account fee, free ATM withdrawals, and there’s no minimum initial deposit or ongoing balance requirement, among other free services.
Discover’s checking account doesn’t pay interest, though its online savings account pays 3.90% APY.
Radius Bank
Radius Bank, through LendingClub, is one of the rare online banks that offer rewards checking that pays cash back rewards on purchases and pays interest. But there’s a big “if” involved.
The Rewards Checking account pays off well if you maintain a minimum balance of $2,500. Also, at least $2,500 worth of direct deposits must be made monthly to have this account. That can be high for some people, but a move to Radius can be worthwhile if it fits your current checking balance.
Currently, Radius pays 0.10% APY on balances of $2,500 to $99,999.99. Bump your checking balance up to $100,000 or more, and the interest rate increases to 0.15%. You’re probably never going to see that 0.15% rate, and if you’re holding that much money in an interest checking account, there are other ways to earn more interest.
The Rewards Checking debit card earns 1% cash back on signature-based purchases, meaning you select “credit” instead of “debit” at store checkouts.
EverBank
Formerly TIAA Bank, EverBank’s Yield Pledge Checking account offers an APY of 0.45%.
The account has no monthly fee, requires only $100 to open, and reimburses up to $15 for ATM fees paid at other ATMs monthly. And while the introductory rate is great, it won’t make you rich.
PNC Bank
With PNC Bank's Foundation Checking account, you can deposit checks, and you'll get access to a Visa card with a vast network of ATMs – about 60,000, to be exact. In addition, you can schedule upcoming payments. But, PNC requires $25 to open an account, and it charges a monthly service fee of $5, which will be waived if you're 62 or older.
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 checking accounts summary
Bank | Monthly fee | APY | Minimum | Key feature |
Ally Bank | $0 | 0.25% | $0 | Mobile app |
Capital One 360 | $0 | 0.10% | $0 | +40,000 ATMs |
Chime | $0 | 0% | $0 | Automated savings |
Charles Schwab | $0 | 0.45% | $0 | Unlimited ATM fee rebates |
Axos Bank | $0 | 1.25% | $0 | Rewards checking |
Chase | $12 | 0.01% | $0 | $200 bonus |
Discover Bank | $0 | 0% | $0 | 1% cash back |
Radius Bank | $0 | Up to 0.15% | $2,500 | Rewards checking |
EverBank | $0 | 0.45% | $100 | Basic checking |
PNC | $5 | 0% | $25 | ATM access |
FAQs
Is online checking online only?
No, it doesn’t have to be, but doing business online only without physical branches is a way for banks to save money and hopefully give some of it back to customers with good interest rates and other perks.
If you plan on opening an online checking account, expect to do most of your banking online. If you have a question or problem, can it be solved without walking into a bank’s office?
Look for a bank that has good customer service offered in many ways. They include:
- Online app
- 24-hour phone service help
- Live chat
- Secure messaging
If a brick-and-mortar bank with offices around the country, and ATMs everywhere are what you’re looking for, then an online checking account may not be for you. Some physical banks, however, do offer great online checking accounts, so don’t discount them.
How do I avoid fees?
Few online banks charge monthly account maintenance fees. If they do, you can often get around it by having a direct paycheck deposit or using the bank’s debit card a few days a week.
Is an online checking account secure?
It should be in many ways, though identity fraud can happen to anyone and online banks.
To avoid bank fraud, sign up for fraud alerts from your bank. And check your credit reports at least once a year for signs of criminals opening accounts in your name.
When shopping for online banks, check if your account is insured by the Federal Deposit Insurance Corporation, or FDIC, for up to $250,000. The federal government insures your deposit if the bank goes out of business.
How do I open an online checking account?
Each bank’s website should be pretty straightforward. Not all have the same procedures, but they should generally require these steps:
- Click on a link on the bank’s official website that sends you to a page to open an account.
- Have documentation ready, such as your Social Security number and a valid form of ID such as a U.S. driver’s license or government ID, proof of a physical address, and proof of citizenship or being a resident alien.
- Create a login with a username and password.
- Pick the account type. A joint account will require that person’s documentation.
- Deposit money through a debit from an account you have elsewhere, or use routing and account numbers. A minimum deposit of $25 may be required.
You may also be able to open the account over the phone.
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.
Why you should open an online checking account
One of the biggest advantages of opening an online checking account is that your day-to-day banking will get much easier.
You can still get physical checks if you want them, but you can use banking apps to access your checking account to pay businesses and transfer money from your account to someone else’s.
Most online banks have zero fees. If there is a monthly fee to keep an account open, it can often be avoided by having direct deposit and maintaining a small account balance.
Deposits are easy. Instead of going to an ATM or bank office, you can use your smartphone to take photos of checks you want to deposit and complete a deposit within a minute.
Most online checking accounts include free access to ATMs. If a fee is charged, many will reimburse you each month for the ATM fees you’re charged.
Those are just some of the features of online checking accounts.
On the downside, not all online banks have physical offices. Some do, but if the one you like doesn’t, you’ll have to contact the bank online, on the phone, or another way instead of walking into a branch and talking to someone in person.
Traditional banks offer online and in-person services, so it’s worth considering a traditional bank if you want the best online bank.
The bottom line
Online checking accounts don’t pay high interest rates, but if your money is going to sit around in a checking account, it can be an easy way to earn a little bit of money instead of doing nothing. The annual percentage yield, or APY, is currently at about 0.10% for most online checking accounts, so don’t expect to get rich with one.
Finding a free checking account shouldn’t be difficult. Most don’t charge monthly fees; only a minimum deposit is often required to open one.
An online checking account won’t drastically change how your bank works; it should improve it. At the very least, it should make your financial life much easier.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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