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Online banks offer a healthy mix of superior APYs, low fees, and moderate minimum requirements.
We compare the products and 60 online banks available nationwide to locate some of the most productive features available. See below to learn more about why we chose each institution, the pros and cons, and to access reviews of individual banks.
Annual Percentage Yields (APY) and Account Headlines are accurate as of June 17, 2024.
Our editors are committed to providing you with unbiased reviews and information. Our editorial content is influenced by advertisers. We use data-driven methodologies to compare monetary products and businesses, so that everyone is measured equally. You can read more about our editorial rules and our banking method for ratings below.
We chose Bank5 Connect High-Interest Checking for its high-interest checking account, which offers a 2. 70% APY on balances of $100 or more and is not consistent with monthly payments or the ability to get money back with your debit card. Get up to $15 per month in ATM payment reimbursement.
Why We Love It
We love Bank5’s free high-yield checking account and cashback debit card. Bank5’s Jumbo Savings account also offers a competitive APY of 5. 10%, but we want to have a balance of at least $25,000 to qualify.
What we don’t like
Unless you can take advantage of Bank5’s gigantic savings account, your savings rates are the most productive on the market. Bank5’s ATM network is also quite limited, but it helps that the bank doesn’t charge any ATM fees and even refunds qualified ATM fees. through other banks.
Who is it for?
Check out Bank5 if you’re primarily looking for a rewarding and affordable checking account. It might also be worth considering if you have $25,000 or more to set aside.
Residents of Massachusetts and Rhode Island are not eligible to bank with Bank5 Connect. Accounts are FDIC insured and all deposits above the FDIC limit of $250,000 are one hundred percent insured through Deposit Insurance Fund (DIF) protection.
We chose Quontic Bank as one of the online banks because it offers APY on all of its accounts: 1. 10% APY on your Quontic Bank high-interest checking account, 4. 50% APY on your Quontic Bank high-yield savings account, 5. 00% APY on your Quontic Bank money market account, and 4. 30% to 5. 10% APY on your Quontic Bank deposit receipt.
Why We Love It
We like Quontic’s superior APYs, low fees, and minimum deposit requirements. The bank also has a Quontic Bank Cash Rewards checking account that will pay up to 1. 00% cash back on all eligible debit card transactions.
What we don’t like
Quontic makes it easy to earn the indexed APY on most of your accounts, but to earn the 1. 10% APY with your high-interest checking account, you’ll need to make at least 10 eligible debit card transactions of at least $10 each according to cycle.
Who is it for?
You go through this online bank if you’re looking for the best APYs and need to be able to manage all your banking operations in one place.
Quontic Bank offers one savings account, two checking accounts, one marketplace account, and five CDs with terms ranging from six months to 60 months.
In addition to its competitive rates, low minimum deposit requirements, and no fees, we chose Ally Bank for its unique online savings tools. With Ally’s savings account, you can create “deposits” that allow you to set 10 other savings goals within a single account. The bank also has a “rounding” feature that transfers loose replacements of your transactions to your savings account. And the bank’s “surprise savings” feature scans your Ally checking account for cash you can safely keep and transfers it to your savings account. .
Why We Love It
As a full-service online bank, Ally offers a diversity of high-PY, low-fee savings and verification products. It has an extensive network of ATMs and refunds up to $10 according to the cycle of fees charged to out-of-network ATMs. .
What we don’t like
Ally’s Cash Market Account and CD rates are not available.
Who is it for?
Consider Ally Bank if you want to increase your savings account balance – its combination of exclusive savings equipment and generous savings APY will help you achieve this.
Ally Bank offers a savings account, an interest-bearing checking account, a cash market account, and CD terms from 3 months to five years. It also offers a cumulative fee CD with a term of two and 4 years and a penalty-free CD with a term of 11 months.
We chose Synchrony Bank because your Synchrony Bank High Yield Savings account will pay a 4. 75% APY, has no monthly fees, and has no minimum deposit requirements. Unlike maximum savings accounts, Synchrony High Yield Savings comes with an ATM card to facilitate your funds.
Why We Love It
We like the fact that all of Synchrony’s savings products (their high-yield savings account, cash market account, and CDs) charge no monthly fees and have no minimum deposit requirements. Their APY savings account is impressive, as are their maximum rates. Terms of the CD.
What we don’t like
This online bank’s cash market account will pay less than you could find and does not offer a checking account.
Who is it for?
Open an account with Synchrony Bank if you need to open a savings account or a high-yield CD, especially if you need monthly fees and minimum deposit requirements.
Synchrony’s banking products have no monthly service payments or minimum balance payments. Synchrony does not qualify a payment for using ATMs, however, a payment could qualify through the ATM owner. Synchrony reimburses up to $5 in payments to the ATM owner each month. however, if you want to achieve Diamond prestige in Synchrony’s Perks Rewards program, get unlimited cashback on ATM payments at domestic ATMs. Synchrony does not refund payments to foreign vending machines.
Discover® Bank is on our list of the most fee-productive online banks thanks to its zero-fee policy: no monthly maintenance fees, no improper budget fees, and no out-of-network ATM fees. There are also no fees for stop payments, returned items, or excessive withdrawals.
Why We Love It
Discover offers a full diversity of banking products and services, adding the Discover® Bank online savings account that earns 4. 25% APY and the Discover® Cash Back Checking account that earns 1% cash back on up to $3,000 in debit card purchases per month. See online page for details. And consumers have access to an extensive network of ATMs.
What we don’t like
This online bank’s MMA and CD rates can be improved, although it offers one of the most productive rates for 10-year CDs.
Who is it for?
Anyone looking to minimize fees while also reaping benefits from competitive fees and rewards turns to Discover.
Discover Bank offers a coin return checking account, a high-yield savings account, a marketplace account, and CDs with terms ranging from 3 months to 10 years. The mobile app has a high rating on the App Store and Google Play.
We have included NBKC Bank because it is a full-service bank that offers interest-bearing accounts and helps keep fees to an absolute minimum. There are no monthly maintenance fees, overdraft fees, minimum balance fees, or foreign transaction fees. In addition, NBKC offers home loans, private loans, and much more, so you can meet all your financial desires in one place.
Why We Love It
The NBKC Bank Everything account is a checking and savings account that earns interest combined into one. You can spend, save, and pay expenses from a single account. It comes with an extensive ATM network and reimburses up to $12 per month for payments outside of network ATM fees. Their CD rates are also competitive.
What we don’t like
While the APY of the Everything account is impressive for a checking account, you may earn a lot more from your savings with one of the high-yield savings accounts. NBKC’s cash market account also doesn’t offer the highest rate.
Who is it for?
Opt for NBKC Bank if you need to manage all of your online banking, and potentially your loans, in one place. You’re also checking to see if you like the concept of a combined checking and savings account.
NBKC Bank offers a combined checking and savings account, a marketplace account, and CD terms from 3 months to five years. It also has an additional one-year CD.
We ranked SoFi in the top spot because its combined checking and savings account come with a cellular check deposit feature that allows you to take a picture of your check and your budget as soon as a day later. This free, interest-bearing account also comes with an early direct deposit.
Why We Love It
You’ll earn 0. 50% APY on checks and 4. 60% APY on savings if you set up direct deposit or deposit $5000 or more every 30 days. Customers who don’t meet those criteria get 1. 20% APY on savings balances with SoFi. checking and savings account. You can even earn cash when you use your SoFi debit card at eligible businesses.
What we don’t like
This bank offers standalone checking or savings accounts, cash market accounts, or CDs.
Who is it for?
Choose SoFi if you’re looking for a flexible checking and savings account that generates competitive returns and comes with additional online banking features, such as cell phone check deposit and savings statements.
SoFi does not offer separate checking or savings accounts at this time, only SoFi’s combined checking and savings account. You can earn up to 4. 60% APY on checking and savings account balances when you set up direct deposit or by depositing $5,000 or more each. and every 30 days. Members without direct deposit earn a 1. 20% APY on their savings balances.
When you open an account, you become a SoFi member, which provides access to additional benefits such as discounts on loan product fees, money planning services, discounts on estate planning, access to exclusive SoFi events, and more.
SoFi members with a direct deposit or $5,000 or more in eligible deposits during the 30-day assessment era can earn a 4. 60% annual percentage yield (APY) on savings balances (including vaults) and a 0. 50% APY on balance verification. There is no minimum direct deposit amount required to qualify for the interest rate listed. Members without direct deposit or eligible deposits, the 30-day evaluation era, will earn 1. 20% APY on savings balances (including vaults) and 0. 50% APY on balance verification. Interest rates are variable and subject to replace at any time. These rates are effective as of 10/24/2023. There is no minimum balance requirement. Additional data can be found in http://www. sofi. com/legal/banking-rate-sheet.
We gave EverBank (formerly TIAA Bank) a more sensible place for its EverBank Basic CD, which offers competitive rates ranging from 3. 90% to 5. 05% APY and has a modest initial deposit requirement of $1000. EverBank CDs are presented for terms ranging from 3 months. to five years.
Why We Love It
In addition to its competitive CD rates, EverBank does not charge monthly fees on your bank accounts, overdraft fees on a connected EverBank account, or ATM fees. EverBank’s checking account will also automatically reimburse up to $15 each month for third parties. Third-party ATM fees. Maintain a minimum balance of $5,000 or more in your checking account and get unlimited ATM cashback.
What we don’t like
The online bank’s cash market account does not pay the fee, and EverBank does not offer CD accounts with a term longer than five years.
Who is it for?
EverBank is the most productive option for strategic investors who need to leverage a CD ladder to their advantage. The bank offers 8 terms of less than 3 years and allows you to create a CD with maturity every 3 months. However, EverBank will not ultimately offer CD terms longer than five years.
EverBank offers a Yield Pledge Checking, a Savings Account, a Yield Pledge Money Market, Fundamental CDs, an Enhanced CD, and what it calls an IntraFi CD, a CD that offers extensive FDIC insurance on deposits.
We chose Capital One 360 as our most sensible pick for visitor service because it offers 24/7 visitor service and was ranked number one in overall visitor satisfaction through J. D. Power for 4 consecutive years. This bank is also an exclusive hybrid between an online bank with no monthly payment and a physical bank. Its Capital One Cafés will offer the possibility to meet privately and face-to-face with bank representatives and financial advisors in a cofpago. Store atmosphere. And Eno, the bank’s virtual assistant, is available on the mobile application or through SMS.
Why We Love It
None of the bank’s products require a minimum deposit or balance, and Capital One 360 offers the best returns on savings accounts and CDs.
What we don’t like
The Capital One Cafés of this online bank are an exclusive advantage, but they have locations in certain cities.
Who is it for?
Consider Capital One 360 if you need to take advantage of the low fees and high returns that come with online banks, but you don’t need to sacrifice smart service to visitors to get them.
Capital One 360 offers a savings account (360 Performance Savings), a checking account (360 Checking), and CDs (360 CDs). It also offers a children’s savings account and a MONEY Teen check.
We chose First Internet Bank as the most productive online bank for small businesses because it offers a variety of professional checking, savings, CDs, and market cash accounts with low, interest-bearing fees. Your Do More Business checking account has no monthly maintenance. Minimum deposit fees or requirements, earn interest, and offer unlimited transactions. The bank’s first bank (personal) certificate of deposit will also pay a generous APY of 4. 14% to 5. 26%.
Why We Love It
We like the rates of MMA and CD from this bank. We also like the fact that it offers two flexible checking accounts: one designed for start-ups or developing businesses and one for medium-sized and giant businesses. Their private accounts also have decent rates and low fees.
What we don’t like
First Internet Bank’s savings rates on your business and private accounts are low.
For whom?
See First Internet Bank if you want to open a business checking account or a business or private CD account.
First Internet Bank has two business checking accounts, a regular business savings account, a business market account, and business CDs with terms ranging from 3 months to five years.
Online banking is a banking activity that is carried out virtually, through a mobile or cell phone application. Instead of going to a branch or ATM to manage your money, you can do it through your computer or smartphone.
Most classic banks and credit unions offer online banking services to their customers. The diversity of services that can be obtained on a regular basis does not differ much from those found in the most productive online banks. The difference is that with classic banking, you also have the option of going to a branch. With online-only banking, this is not the case.
Online banking consumers can initiate transactions online, a mobile app, by phone, or by mail. They can also link their online bank accounts to the ones they have at classic banks, credit unions, or other online banks.
Online banking products vary by institution. Generally, online banks offer the ability to open accounts, pay bills, move funds, deposit checks, view statements, and perform other typical banking tasks. Many also offer access to ATM networks at no extra charge.
Online banks offer many advantages.
Reduced rates
Online banks have lower overhead costs and tend to charge fewer fees than traditional banks. Most of the most productive online banks don’t qualify:
Some online banks even offer ATM payment rebates for all payments collected through out-of-network ATM operators.
Higher rates
Not only do low prices mean fewer fees, but they also mean more competitive interest rates on checking accounts, savings accounts, CDs, and cash market accounts. Online banks tend to offer APYs that are much higher than the national average.
Additional Features
Some of the most productive online bank accounts come with virtual extras that are convenient and allow you to budget and save. These include:
Easy Applications
Online banks allow you to apply for accounts entirely online, and their application processes take just a few minutes or in full. The most productive online banks also have sleek, easy-to-use internet and mobile interfaces.
Many other people turn to online banking, but this is not without its drawbacks.
No branch
The biggest apparent disadvantage of online banks is that they don’t offer physical locations, which means you do your banking in person.
ATM networks would likely be limited
Many online banks have extensive ATM networks comparable to those offered through classic banks, however, some online banks have a smaller or no ATM network. These banks offer some form of ATM payment reimbursement so that you can use other banks’ ATMs without having to worry about payments, but those refunds may be limited to a certain amount per month.
I can’t accept money deposits
Many online banks do not accept money deposits. If you get paid in money, be sure to find one that does or opt for a traditional bank.
Limited services
While many online banks will offer a full diversity of bank accounts, they may not offer all the monetary products that you would find in a classic bank. You may only have one option when it comes to opting for a checking or savings account, and some online banks don’t offer loans or investments
Here are some other things you should do when opting for an online bank:
Generally, banks are safe. Look for the Federal Deposit Insurance Corporation (FDIC) to insure your accounts. FDIC-insured online banks have the same protections as banks with branches.
In many ways, online accounts are more secure than classic bank accounts because of online statements and the focus on virtual transactions rather than paper checks. Avoiding paper statements and checks eliminates a fraud opportunity that many thieves take advantage of.
You can open a bank account online through the online page or mobile app of the bank or credit union of your choice. From there, regularly follow the same steps as for opening a bank account at a branch. Below is a typical step-by-step procedure for opening a bank account online:
Related to: Online Banking vs Online Banking Traditional Banks: Which Are The Best?
However, if you prefer face-to-face interactions and still need to meet some of your in-person banking needs, an online bank is arguably not the most productive option for you.
To create this list, Forbes Advisor analyzed the products of 60 online banks, adding a mix of neobanks and large and small online banks. We ranked each bank into 12 knowledge questions in the categories of product offerings, APY, fees, ATM network. , visitor experience, virtual experience, and minimum requirements.
Here is the weight assigned to the category:
Online banks that offer the highest APYs and lowest fees on all of their products rose to the most sensible on the list, as did those with low deposit requirements and minimum balance and an extensive network of ATMs. Banks with higher visitor satisfaction and intuitive virtual banking delight in also scored higher. To appear on this list, the bank will need to be an online bank with national availability.
To learn more about our scoring, our scoring method, and our editorial process, please consult our consultant on How Forbes Advisor Rates Banks.
Our research is based on data from the following monetary 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, BB
The most productive online banks are the ones that meet your needs. If you’re happy with your current banking services but need to earn more interest on your savings, look for an online bank that offers a competitive, high-yielding savings account.
If you’re upgrading your current bank, focus on the total package. Look for an online bank that helps you keep fees and minimum requirements low, offers superior APYs, and allows easy access to your cash through ATMs and mobile phone apps. Also, look for a bank that provides the right service to the visitor.
The FDIC insures many online banks. Other online banks are affiliated with traditional FDIC-insured banks. And some will offer more insurance protections through organizations like the Massachusetts Depositor Insurance Fund (DIF).
FDIC-insured accounts are covered for up to $250,000 per depositor, per asset class, in the event of bank failure. Before opening a bank account, verify that the financial institution is insured by the FDIC. Research the National Credit Union Administration (NCUA) to insure nationally chartered credit unions and many nationally chartered credit unions for similar amounts.
Online banks do not have their own branded ATMs, but in many cases they provide free access to ATMs through partner banks. ATM networks vary in length depending on the bank you use, and some of the most productive online banks provide free access. to more than 37,000 ATMs nationwide. If you withdraw cash frequently, check to see if your account includes ATM payment refunds, as additional payments can be quickly loaded from out-of-network ATMs.
There is no such thing as an absolutely loose bank account. All bank accounts come with fees in some form, but it’s possible to find checking and savings accounts with no monthly account maintenance fees.
You can retrieve your bank statements by logging into your account and accessing the statements page on your bank’s website.
Online bank accounts can be blocked for a number of reasons. Banks can freeze them if credentials, such as a username or password, are entered too often. Accounts can also be blocked if the online bank detects suspicious activity, such as fraud or money laundering. In some cases, your account may simply be blocked if you have too many notable debts to your creditors or the government.
You may not need to open a bank account online if you don’t have certain required documents, such as a government-issued photo ID, a U. S. residential address, or a U. S. address. A Social Security number or tax identification number must be used in the U. S. , a Social Security number. In addition, your application will possibly be denied if you have earned too many negative scores, such as overdrafts or bounced checks, he told ChexSystems.
If your online bank has an ATM network that allows coin deposits, you can regularly deposit coins at an ATM in the network in the same way you would at a classic bank. Some online banks without an ATM network offer coin deposits at some retailers, this can incur fees of up to $5 or more. Many online banks don’t support coin deposits at all, but they may offer a mobile phone check deposit feature.
With eight years of experience as a journalist and a graduate in economics and finance, Elizabeth Aldrich has painted thousands of articles in the fields of banking, economics, credit cards, investments, lending, personal finance and travel. has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo!Finances, and more.