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Online banks offer a healthy mix of superior APYs, low fees, and moderate minimum requirements.
We’ve compared the products and the 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 access. reviews of individual banks.
Annual Percentage Yield (APY) and account principal points are accurate as of March 13, 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 cashback.
Why We Love It
We like Bank5’s high-yield flexible checking account and cash-back 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 offers refunds for qualified ATM fees. through other banks.
Who is it for?
Turn to 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. The accounts are insured by the FDIC and all deposits above the FDIC’s $250,000 limit are one hundred percent insured through the protection of the Share Insurance Fund (DIF).
We chose Quontic Bank as one of the online banks because they offer APY on all of their accounts: 1. 10% APY on their Quontic Bank high-interest checking account, 4. 50% APY on their Quontic Bank high-yield savings account, 5. 00% APY on their Quontic Bank cash market account, and 4. 30% to 5. 30% APY on their Quontic Bank certificate of deposit.
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% cashback on all eligible debit card transactions.
What We Don’t Like
Quontic makes it easy to earn indexed APY on most of your accounts, but to get 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 consistently. with cycle. .
Who is it for?
You stop by 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 market account, and five CDs with a term ranging from six months to five years.
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 another 10 savings goals within a single account. The bank also has a “rounding” feature that transfers replacement 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-APY, low-fee verification and savings products. It has an extensive ATM network and reimburses up to $10 according to the cycle for 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 unique savings teams and a generous savings APY will help you get there.
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 two- and four-year accrual rate CD and an 11-month penalty-free CD. .
Discover® Bank makes our list of the most fee-productive online banks thanks to its zero-fee policy: no monthly maintenance fees, no inadequate budgeting fees, and no out-of-network ATM fees. There are also no fees for avoiding 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 debit checking account that earns 1% cash back on up to $3,000 on 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 enjoying competitive pricing and rewards check out Discover.
Discover Bank offers a coin return checking account, a high-yield savings account, a market account, and CDs with terms ranging from 3 months to 10 years. The mobile app is highly rated on the App Store and Google Play.
We chose Synchrony Bank because their 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 that all of Synchrony’s savings products (your high-yield savings account, your cash market account, and your CDs) don’t charge monthly fees and have no minimum deposit requirements. Their APY savings account is impressive, as are their rates on maximum CD terms. .
What We Don’t Like
This online bank’s cash market account will pay less than you might find and doesn’t offer a checking account.
Who is it for?
Open an account with Synchrony Bank if you need to open a high-yield savings account or 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 ATM use, however, a payment would possibly 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 status in Synchrony’s Perks Rewards program, get unlimited ATM payment cashback at domestic ATMs. Synchrony does not refund foreign ATM payments.
We include NBKC Bank because it’s 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 transaction fees. In addition, NBKC offers home loans, private loans, and more, so you can satisfy all your financial desires in one place.
Why We Love It
nbkc bank Everything Account is a checking account and an interest-bearing savings account combined into one. You can spend, save, and pay your expenses from a single account. It comes with an extensive ATM network and reimburses up to $12 per month. for out-of-network ATM fees. Their CD rates are also competitive.
What We Don’t Like
While the APY for 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 savings and existing account.
NBKC Bank offers an existing combined and savings account, a market account, and CDs with maturities from 3 months to five years. It also has an additional one-year CD.
We ranked SoFi in the top spot because their combined checking and savings account comes 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 upfront payment. Direct deposit.
Why We Love It
You’ll get 0. 50% APY on checks and 4. 60% APY on savings if you set up direct deposit or by depositing $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 stand-alone checking or savings accounts, nor does it offer cash market or CD accounts.
Who is it most productive 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 the combined SoFi 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 who make non-direct deposits earn a 1. 20% APY on their savings balances.
When you open an account, you become a SoFi member, giving you access to additional benefits such as discounts on loan product rates, money planning services, estate planning discounts, access to exclusive SoFi events, and more.
SoFi members with direct deposit or $5,000 or more in qualifying deposits during the 30-day trial era can earn a 4. 60% annual percentage return (APY) on savings balances (including vaults) and a 0. 50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the indexed interest rate. Members without direct deposit or qualifying deposits, the 30-day trial era, will earn 1. 20% APY on savings balances (including vaults) and 0. 50% APY on check balances. Interest rates are variable and item 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 give EverBank (formerly TIAA Bank) the most sensible place for their EverBank Basic CD, which offers competitive rates ranging from 3. 95% to 5. 15% APY and a modest $1000 initial deposit requirement. EverBank CDs are filed 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, no overdraft fees on a connected EverBank account, and no ATM fees. EverBank’s checking account also automatically reimburses up to $15 each month for third-party ATMs. Rates. 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 marketplace 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 savers who need to leverage a DC ladder to their advantage. The bank offers 8 terms of less than 3 years and allows you to create a CD that matures every 3 months. However, EverBank will not be offering CD terms longer than five years.
EverBank offers an existing account (Yield Pledge Checking), a savings account, a market account (Yield Pledge Money Market), fundamental CDs, a boost CD, and what it calls an IntraFi CD, a CD that provides extensive FDIC deposit insurance. .
We chose Capital One 360 as our most sensible choice for visitor service because it provides 24/7 visitor service and has been 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 fees and a brick-and-mortar bank. Their Capital One Cafés offer the possibility to meet face-to-face with bankers and financial advisors in a café atmosphere. And Eno, the bank’s virtual assistant, is available on the mobile app or via SMS.
Why We Love It
None of the bank’s products require a minimum deposit or minimum balance, and Capital One 360 offers the best returns on savings accounts and CDs.
What We Don’t Like
This online bank’s Capital One Cafes are an exclusive perk, 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 presented through online banks, but you don’t need to sacrifice smart service to visitors to get them.
Capital One 360 offers a 360 Performance Savings, a 360 Checking account, 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 market cash, savings, CDs, and professional checking accounts with low, interest-bearing fees. Your Do More Business checking account has no monthly maintenance. minimum deposit fees or requirements, earns interest, and offers unlimited trading. The bank’s first online (personal) bank certificate of deposit will also pay a generous APY of 4. 14% to 5. 31%.
Why We Love It
We like this bank’s MMA and professional CD rates. We also like the fact that it offers two flexible checking accounts: one designed for new or developing businesses and one for medium and large businesses. Their private accounts also have decent rates and low fees.
What We Don’t Like
First Internet Bank’s savings rates on its business and private accounts are low.
Who is it for?
Check out 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 cash market account, and business CDs with terms ranging from 3 months to five years.
Online banking is a banking activity that is done virtually, through an online page or a mobile app. Instead of going to a branch or ATM to manage your money, you can do it from 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 what is found in the most productive online banks. The difference is that with the classic bank, 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, on a mobile app, by phone, or by mail. They can also link their online bank accounts to those 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 overall fees 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 refunds 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 only a few minutes or all of it. The most productive online banks also have sleek and easy-to-use mobile and internet interfaces.
Many other people turn to online banking, but this is not without its drawbacks.
No to the branch
The biggest apparent disadvantage of online banks is that they don’t offer physical locations, which means you can’t bank in person.
ATM networks may be limited
Many online banks have extensive ATM networks comparable to those offered through classic banks, however, some online banks have a smaller or even non-existent ATM network. These banks offer some form of ATM payment reimbursement so you can use those of other banks. ATMs without having to worry about payments, but those refunds may be limited to a set amount per month.
I can’t settle for money deposits
Many online banks do not accept money deposits. If you get paid in cash, be sure to find one that does or opt for a brick-and-mortar bank.
Limited Services
While many online banks will offer a full diversity of bank accounts, they may not offer all of 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 to the Federal Deposit Insurance Corporation (FDIC) to insure your accounts. FDIC-insured 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 fact that they 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 an online bank account:
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 take care of some of your banking needs in person, an online bank may not be 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 online banks large and small. We categorized each bank into 12 knowledge topics in the categories of product offerings, APYs, fees, ATM network. , visitor experience, virtual experience, and minimum requirements.
The weighting assigned to the category is as follows:
Online banks that offer the highest APYs and lowest fees across all of their products rose to the most sensible on the list, as did those with low deposit and minimum balance requirements and an extensive ATM network. Banks with higher visitor satisfaction and an intuitive virtual system. Banking experience 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, scoring method, and editorial process, consult our consultant on How Forbes Advisor Rates Banks.
Our studies are 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 need to upgrade your current bank, focus on the total package. Look for an online bank that helps you keep fees and minimum requirements low, offers the best APYs, and allows easy access to your cash through ATMs and mobile apps. Also, take a look for a bank that offers the right service to visitors.
The FDIC insures many online banks. Other online banks are affiliated with traditional FDIC-insured banks and some offer more insurance protections through organizations such as the Massachusetts Depositors’ Insurance Fund (DIF).
FDIC-insured accounts are covered 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 FDIC insured. Look for the National Credit Union Administration (NCUA). ) to secure nationally chartered credit unions and many nationally chartered credit unions for similar amounts.
Online banks do not have their own branded ATMs, however, in many cases, they provide free access to ATMs through partner banks. The length of ATM networks varies depending on the bank you use, and some of the most productive online banks provide free access. Access to more than 37,000 ATMs nationwide. If you withdraw money frequently, check to see if your account has ATM payment refunds, as payments loaded from out-of-network ATMs may be temporarily charged.
There is no such thing as an absolutely loose bank account. All bank accounts come with fees in one form or another, but it’s possible to find checking accounts 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 cash 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 an online bank account if you don’t have certain required documents, such as a government-issued photo ID, U. S. green card, social security number, or tax identification number. In addition, your application would possibly be rejected if you have earned too many negative notes, such as overdrafts or bad checks, reported to 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 as you would at a classic bank. Some online banks without an ATM network offer coin deposits at certain retailers, this can incur fees of up to $5 or more. Many online banks don’t support coin deposits at all, but possibly offer a mobile check deposit feature.
Editor-in-Chief, Global Data & Automation at Forbes Advisor. Mitch has over a decade of experience as a private finance editor, writer, and content strategist. Prior to joining Forbes Advisor, Mitch worked for various sites, adding Bankrate, Investopedia, Interest, PrimeRates, and FlexJobs.
With eight years of experience as a journalist and financier with a bachelor’s degree in economics, Elizabeth Aldrich has painted thousands of stories in the spaces of banking, economics, credit cards, investing, lending, personal finance, and travel. he has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo!Finance, and more.