If you prefer opening a checking or savings account from the comfort of your home on your computer or phone, an online bank could be for you. To help make your decision a little easier, the Fortune RecommendsTM editorial team ranked over 60 online banks that offer both checking and savings accounts. We considered annual percentage yield (APY), monthly service fees, overdraft fees, mobile application ratings, free ATM access, account offerings and services, and customer service options:
The 10 best online banks of 2024
| Institution | Top savings APY | Top checking APY | See details |
|---|---|---|---|
| Featured Partner Best for cash back offer: SoFi® Checking & Savings (Member FDIC) | Up to 4.00%* | 0.50%1 | View offer at SoFi |
| Best for jumbo savings: Bank5 Connect | 4.95% | 2.70% | View offer at MoneyLion |
| Best for account perks: Zynlo Bank | 5.00% | 2.00% | View offer at MoneyLion |
| Best for MMA APY: Quontic Bank | 4% | 1.10% | View offer at Quontic |
| Best for product options: American Express National Bank | 3.9% | 1.00% | View offer at Bankrate |
| Best for no fees: Ally Bank | 3.85% | 0.25% | View offer at Bankrate |
| Best for student loan relief: Laurel Road | 4.5% | 0.01% | View offer at MoneyLion |
| Best for high APY savings: Everbank | 4.75% | 0.40% | View offer at MoneyLion |
| Best for mobile banking: Capital One | 3.90% | 0.10% | View offer at Bankrate |
| Best for CD rates: Discover | 3.90% | 0% | View offer at MoneyLion |
| The 10 best online banks | |||
|---|---|---|---|
| Featured Partner Best for cash back offer: SoFi® Checking & Savings (Member FDIC) | View offer at SoFi | ||
| Top savings APY | Up to 4.00%* | ||
| Top checking APY | 0.50%1 | ||
| Best for jumbo savings: Bank5 Connect | View offer at MoneyLion | ||
| Top savings APY | 4.95% | ||
| Top checking APY | 2.70% | ||
| Best for account perks: Zynlo Bank | View offer at MoneyLion | ||
| Top savings APY | 5.00% | ||
| Top checking APY | 2.00% | ||
| Best for MMA APY: Quontic Bank | View offer at Quontic | ||
| Top savings APY | 4% | ||
| Top checking APY | 1.10% | ||
| Best for product options: American Express National Bank | View offer at Bankrate | ||
| Top savings APY | 3.9% | ||
| Top checking APY | 1.00% | ||
| Best for no fees: Ally Bank | View offer at Bankrate | ||
| Top savings APY | 3.85% | ||
| Top checking APY | 0.25% | ||
| Best for student loan relief: Laurel Road | View offer at MoneyLion | ||
| Top savings APY | 4.5% | ||
| Top checking APY | 0.01% | ||
| Best for high APY savings: Everbank | View offer at MoneyLion | ||
| Top savings APY | 4.75% | ||
| Top checking APY | 0.40% | ||
| Best for mobile banking: Capital One | View offer at Bankrate | ||
| Top savings APY | 3.90% | ||
| Top checking APY | 0.10% | ||
| Best for CD rates: Discover | View offer at MoneyLion | ||
| Top savings APY | 3.90% | ||
| Top checking APY | 0% | ||
Rates last updated December 2, 2024. Read our full methodology here.
SoFi: Best for cash back offer
SoFi® Checking & Savings
Member FDIC
| APY | Up to 4.00* |
| Minimum Balance Required to Earn APY | $0 |
| Minimum Opening Deposit | $0 |
| Monthly Maintenance Fee | None |
Member FDIC
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Why we picked it
Although SoFi does not offer money market or CD accounts, it does have a range of diversified banking products. It offers high-yield checking and savings accounts as well as various loan and insurance products, and small business financing.
Learn more: Read our SoFi review
Pros
- No monthly account fees
- No minimum deposit requirements
- Competitive rates on checking and savings
Cons
- Direct deposit required to earn highest APY
- Customers must open both checking and savings (can’t have just one)
- High direct deposit amount required to earn bonus
What to consider before banking with SoFi
SoFi only offers high-yield savings and interest checking accounts, so its products are limited compared to other financial institutions.
More rates and products from SoFi
SoFi has one checking and savings account that earn interest. There is also a $300 cash back offer on the checking account for new customers who set up direct deposit.
| Account Type | APY | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|
| Online Checking | 0.50% contingent on a monthly qualifying direct deposit | $0 | $0 |
| High Yield Savings | 1.20% to 4.00% contingent on a monthly qualifying direct deposit | $0 | $0 |
| SoFi rates and products | |||
|---|---|---|---|
| Online Checking | |||
| APY | 0.50% contingent on a monthly qualifying direct deposit | ||
| Minimum opening deposit | $0 | ||
| Monthly maintenance fee | $0 | ||
| High Yield Savings | |||
| APY | 1.20% to 4.00% contingent on a monthly qualifying direct deposit | ||
| Minimum opening deposit | $0 | ||
| Monthly maintenance fee | $0 | ||
Bank5 Connect: Best for jumbo savings APY
Bank5 Connect is an online division of BankFive, a Massachusetts-based community that has been serving customers since 1855. It offers checking and savings accounts, and certificates of deposit (CDs) with high yields.
Bank5 Connect
| Checking account APY | 2.70% |
| Savings account APY | 1.50% (4.95% for Jumbo Savings) |
| ATM network | SUM® Network |
| Fees | Overdraft: $15 Paper statement: $1 Returned deposited item: $7 Stop payment: $15 Debit card replacement: $10 |
at MoneyLion
Why we picked it
Bank5 Connect is a smaller online bank but offers competitive interest rates on the products it carries, including an impressive 2.70% annual percentage yield (APY) on its checking account and 1.50% APY on savings—but if you have at least $25,000 in savings, its Jumbo Savings account earns 4.95%. The checking and savings accounts each require a minimum of $10 to open but you must have a $100 balance to get the top APY.
This bank also makes it easy to get in touch if you need help, offering customer support via phone, email, and live chat.
Learn more: Read our Bank5 Connect review
Pros
- No monthly maintenance fees
- Deposit insurance on 100% of balances, over $250,000
- Comprehensive customer service, including video calls
Cons
- Minimum opening deposit requirements
- Minimum balance requirements on all accounts
- Fees imposed for paper statements
What to consider before banking with Bank5 Connect
Bank5 Connect has great high-yielding deposit accounts but it does not have any branded ATMs. However, you do get access to thousands of ATMs through its partnership with SUM Network, and the bank will reimburse up to $15 per statement cycle in ATM fees.
Also, the bank has limited hours during the day when you can chat with a representative by phone or virtually.
More rates and products from Bank5 Connect
Bank5 has solid options for different accounts that offer high APYs, such as a jumbo savings account and CDs topping 5% APYs.
| Account Type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| Jumbo savings | 5.10% | N/A | $25,000 balance | $0 |
| Accelerator money market | 5.05% | N/A | $5,000 | $0 |
| CDs | 0.85% to 5.05% | 6 months to 36 months | $500 | $0 |
| Jumbo savings | |
|---|---|
| APY | 5.10% |
| Term lengths | N/A |
| Minimum opening deposit | $25,000 balance |
| Monthly maintenance fee | $0 |
| Accelerator money market | |
| APY | 5.05% |
| Term lengths | N/A |
| Minimum opening deposit | $5,000 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 0.85% to 5.05% |
| Term lengths | 6 months to 36 months |
| Minimum opening deposit | $500 |
| Monthly maintenance fee | $0 |
Zynlo Bank: Best for account perks
A division of PeoplesBank, Zynlo is a fully digital bank that provides special perks, such as market-leading deposit rates, earlier access to paychecks, and rewards on debit card purchases.
Zynlo Bank
| Checking account APY | 2.00% |
| Savings account APY | 5% |
| ATM network | Allpoint |
| Fees | No overdraft fees, balance penalties, or withdrawal fees |
at MoneyLion
Why we picked it
Zynlo’s More Spending checking account offers an impressive 2.00% APY. Pair this with its high-yield Tomorrow Savings account, which earns a whopping 5.00% APY, and you can participate in the ZYNG Round up and Match bonus program. Every debit card purchase is rounded up to the nearest dollar, Zynlo matches that round up, then the total is deposited to your savings account. This allows you to earn an additional 4.11% return or more on your money.
Zynlo customers can manage their accounts from any smartphone, tablet, or computer. As part of the Allpoint ATM network, you’ll always have nearby access to your cash.
Learn more: Read our Zynlo Bank review
Pros
- No minimum balance requirements
- Expanded deposit insurance over $250,000
- First 100 days include a 100% match on roundup savings
Cons
- No checks provided
- Not transparent about fees or limitations
- Roundup savings match requires a $5,000 average daily balance
What to consider before banking with Zynlo
While Zynlo has competitive rates on savings, checking, and money market accounts (MMAs), it does not offer CDs. There are competitors that have a wider set of deposit products and banking options.
More rates and products from Zynlo
Zynlo offers only offers a savings account, checking account, and MMAs, all of which earn interest.
| Account Type | APY | Minimum Opening deposit | Monthly maintenance fee |
|---|---|---|---|
| Savings | 5.00% | $0 | $0 |
| Checking | 2% | $0 | $0 |
| Money market | 5%% | $0 | $0 |
| Savings | |
|---|---|
| APY | 5.00% |
| Minimum Opening deposit | $0 |
| Monthly maintenance fee | $0 |
| Checking | |
| APY | 2% |
| Minimum Opening deposit | $0 |
| Monthly maintenance fee | $0 |
| Money market | |
| APY | 5%% |
| Minimum Opening deposit | $0 |
| Monthly maintenance fee | $0 |
Quontic Bank: Best for money market APY
Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It is a Federal Deposit Insurance Corp (FDIC)-insured bank offering online and mobile banking platforms and a fee-free ATM network made up of 90,000 ATMs across the country. It offers several checking accounts, savings accounts, and mortgage products.
Quontic Bank
| Checking account APY | 1.10% |
| Savings account APY | 4% |
| ATM network | Citibank, MoneyPass, and Allpoint |
| Fees | Overdraft fee: $0 Dormant account: $5 per month Stop payment: $20 Return deposited item: $10 |
at Quontic
at Quontic
Why we picked it
Quontic Bank made our list for its competitive deposit rates, low fees, and massive ATM network. A major selling point: Quontic doesn’t charge overdraft fees. For the online banker who isn’t diligent about checking their account balance, this could be a lifesaver. What’s more, Quontic offers multiple customer support options and mortgage products in addition to its checking and savings accounts.
Learn more: Read our Quontic Bank review
Pros
- No monthly maintenance fees
- Competitive interest rates
- U.S.-based customer service
Cons
- No customer support available on weekends
- No lending products other than mortgages
- No business account offerings
What to consider before banking with Quontic Bank
Quontic Bank is a community development financial institution (CFDI) with several high-yielding deposit products. Its mortgage products are built for outside-the-box borrowers, offering waived underwriting fees. While Quontic has CDs with high APYs, the terms are limited to five options.
More rates and products from Quontic Bank
Quontic Bank offers three types of checking, a high yield savings, an MMA, and CDs with terms from six months to five years.
| Account Type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| High interest checking | 0.01% or 1.10% contingent on 10 qualifying monthly transactions | N/A | $100 | $0 |
| High yield savings | 4% | N/A | $100 | $0 |
| Money market | 4.75% variable and tiered | N/A | $100 | $0 |
| CDs | 3.00% to 4.25% | 6 months to 5 years | $500 | $0 |
| High interest checking | |
|---|---|
| APY | 0.01% or 1.10% contingent on 10 qualifying monthly transactions |
| Term lengths | N/A |
| Minimum opening deposit | $100 |
| Monthly maintenance fee | $0 |
| High yield savings | |
| APY | 4% |
| Term lengths | N/A |
| Minimum opening deposit | $100 |
| Monthly maintenance fee | $0 |
| Money market | |
| APY | 4.75% variable and tiered |
| Term lengths | N/A |
| Minimum opening deposit | $100 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 3.00% to 4.25% |
| Term lengths | 6 months to 5 years |
| Minimum opening deposit | $500 |
| Monthly maintenance fee | $0 |
American Express National Bank: Best for product options
American Express has a history that stretches back to 1850 and has since become globally recognized for its credit cards, rewards, personal, and business banking products. It also has a wide network of over 37,000 free ATMs.
American Express National Bank
| Checking account APY | 1.00% |
| Savings account APY | 3.9% |
| ATM network | MoneyPass |
| Fees | Overdraft: $0 ACH transfers: $0 Internal transfers: $0 Outgoing wire transfer: $20 |
at Bankrate
Why we picked it
American Express took the fifth spot on our list for its competitive APY on its savings account, high mobile app rating, and wide range of product offerings. Amex offers personal bank accounts, credit card products with robust rewards programs, and a suite of business products and solutions for consumers who need the best of both worlds.
Learn more: Read our American Express National Bank review
Pros
- Competitive rates on savings, checking, and CDs
- No minimum opening deposit requirements
- No maintenance fees on checking and savings
Cons
- Checking account only available to Amex card holders
What to consider before banking with American Express
American Express offers a unique combination of both an interest-bearing account plus a membership rewards program linked to the checking account. The program yields one membership reward point for every $2 of eligible debit card purchases. Points can then be redeemed from various retail, travel, and entertainment websites. The checking account also earns a 1% APY on the balance.
More rates and products from American Express
American Express offers several high-yield savings, personal and business checking accounts, and CDs—all at little to no cost.
| Account type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| Rewards Checking | 1% | N/A | $0 | $0 |
| High Yield Savings | 3.9% | N/A | $0 | $0 |
| CDs | 3.00% to 3.60% | 11 months to 5 years | $0 | $0 |
| Rewards Checking | |
|---|---|
| APY | 1% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| High Yield Savings | |
| APY | 3.9% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 3.00% to 3.60% |
| Term lengths | 11 months to 5 years |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
Ally Bank: Best for no-fee accounts
Ally is an online-only bank that offers a wide range of financial products and services including deposit accounts, credit cards, loans, robo-advisors, and more. Despite the lack of physical branches, Ally customers can access their money free of charge easily via the Allpoint network of ATMs.
Ally Bank
| Checking account APY | 0.25% |
| Savings account APY | 3.85% |
| ATM network | Allpoint |
| Fees | Overdraft fee: $0 Standard or expedited ACH transfers: $0 Incoming wires: $0 Outgoing domestic wires: $20 Expedited delivery: $15 |
at Bankrate
Why we picked it
The checking account from Ally comes with several perks, including early direct deposit, no maintenance fees, no overdraft fees, and access to thousands of fee-free ATMs. If you do need to use an out-of-network ATM, however, Ally reimburses up to $10 in fees each month. Furthermore, its savings account offers a rate more than five times the national average at 3.85% APY, plus the ability to organize your savings into buckets so that you can track your progress toward certain goals.
Account holders can also reach a representative day or night via phone, chat, and email.
Learn more: Read our Ally Bank review
Pros
- No account balance minimum requirements
- High APYs
- Online and mobile banking platforms are clean and easy to use
Cons
- Outgoing domestic wires are charged a fee
- No way to send outgoing international wires
What to consider before banking with Ally
Ally offers competitively high rates on its savings, money market, and CD accounts. Nearly all of its accounts are free with no monthly maintenance fees. However, the online bank does not accept cash deposits.
More rates and products from Ally
Here are some of the highest-rate deposit accounts at Ally Bank:
| Account type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| Spend Checking | 0.10% to 0.25% | N/A | $0 | $0 |
| Savings account | 3.85% | N/A | $1 | $0 |
| Money market | 3.85% | N/A | $0 | $0 |
| CDs | 2.90% to 4.20% | 3 months to 5 years | $0 | $0 |
| Spend Checking | |
|---|---|
| APY | 0.10% to 0.25% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| Savings account | |
| APY | 3.85% |
| Term lengths | N/A |
| Minimum opening deposit | $1 |
| Monthly maintenance fee | $0 |
| Money market | |
| APY | 3.85% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 2.90% to 4.20% |
| Term lengths | 3 months to 5 years |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
Laurel Road: Best for student loan relief accounts
Laurel Road is a digital banking platform and brand of KeyBank. It specializes in providing online banking and lending services and is particularly known for student loan refinancing. However, it also offers excellent deposit account options, including rewards checking and high-yield savings.
Laurel Road
| Checking account APY | 0.01% |
| Savings account APY | 4.5% |
| ATM network | KeyBank and Allpoint |
| Fees | Overdraft: $0 ($20 if you overdraw your account by more than $20) Returned statement handling charge: $10 Stop payment charge: $34 |
at MoneyLion
at MoneyLion
Why we picked it
The Cash Rewards checking account from Laurel Road allows you to earn up to $20 for every month you make qualifying automated clearing house (ACH) direct deposits during the first 12 months, and $10 for every month after that for as long as your account is open. It also comes with a $100 welcome bonus. You can also opt for the Refinancing Plus checking account, which provides a rate discount on your refinanced student loan.
Additionally, the high-yield savings account offers one of the best rates available today at 4.5% APY with no fees or minimum balance requirements. You can reach customer support at about any time via phone, email, or live chat.
Learn more: Read our Laurel Road review
Pros
- High savings APY
- No monthly fees
- Zelle integration for easy peer-to-peer payments
Cons
- Some customers have had issues with long wait times for fraud verification
- Low APY on checking account
What to consider before banking with Laurel Road
While Laurel Road has competitively high yields on its savings and checking accounts, it does not offer CDs or MMAs. Some online competitors might offer more depository products.
Laurel Road does not take cash deposits. It only accepts direct deposits, account or wire transfers, and checks.
More rates and products from Laurel Road
Most of Laurel Road’s deposit accounts are built to link to student loans to offer a payment discount, for example. It has two main checking and savings accounts that earn interest at no cost to open.
| Account type | APY | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|
| Laurel Road Loyalty Checking | 0.01% | $0 | $0 |
| High yield savings | 4.5% | $0 | $0 |
| Laurel Road Loyalty Checking | |
|---|---|
| APY | 0.01% |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| High yield savings | |
| APY | 4.5% |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
Everbank: Best for high APY savings
EverBank, based in Jacksonville, Florida, has a full suite of depository accounts that earn among the highest rates in the market, particularly its savings account. Its customers have access to a network of over 80,000 fee-free ATMs but also get reimbursed automatically up to $15 per month for fees incurred at out-of-network ATMs.
EverBank
| Checking account APY | 0.40% |
| Savings account APY | 4.75% |
| ATM network | Allpoint and MoneyPass |
| Fees | Overdraft fee: $0 Stop payment item: $25 Outgoing domestic wire transfers: $25 Outgoing international wires: $35 Debit card replacement: $0 |
at MoneyLion
Why we picked it
EverBank’s Performance Savings account rate is the highest on our list at 4.75% APY. There are no monthly fees or minimum balance requirements. Its checking account offers a competitive 0.40% APY with zero maintenance or overdraft fees.
For those who are looking for a bank that offers extensive free ATM access, a robust digital experience, and competitive interest rates to grow their balances, EverBank stands out as a great choice.
Learn more: Read our Everbank review
Pros
- No overdraft fees
- $15 in out-of-network ATM fees reimbursed every statement cycle
- Interest on accounts compounds daily
Cons
- Limited range of product offerings
- Minimum deposit requirements on high-interest checking
What to consider before banking with Everbank
Unlike many online-only banks, EverBank has a physical presence in Florida. It also does not offer certain banking products, such as insurance and loans.
More rates and products from Everbank
Everbank offers a full range of savings, checking, and MMAs, as well as CDs with competitively high APYs.
| Account type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| Performance checking | 0.40% | N/A | $100 | $0 |
| Performance savings | 4.75% | N/A | $1 | $0 |
| Money market | 4.3% | N/A | $0 | $0 |
| CDs | 3.50% to 4.15% | 3 months to 5 years | $1,000 | $0 |
| Performance checking | |
|---|---|
| APY | 0.40% |
| Term lengths | N/A |
| Minimum opening deposit | $100 |
| Monthly maintenance fee | $0 |
| Performance savings | |
| APY | 4.75% |
| Term lengths | N/A |
| Minimum opening deposit | $1 |
| Monthly maintenance fee | $0 |
| Money market | |
| APY | 4.3% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 3.50% to 4.15% |
| Term lengths | 3 months to 5 years |
| Minimum opening deposit | $1,000 |
| Monthly maintenance fee | $0 |
Capital One: Best for mobile banking app
Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence as well as some physical branches across the country. Customers have access to a network of more than 70,000 ATMs nationwide.
Capital One
| Checking account APY | 0.10% |
| Savings account APY | 3.9% |
| ATM network | Capital One, MoneyPass, and Allpoint |
| Fees | Overdraft fee: $0 Outgoing domestic wire transfer: $30 Cashier’s check: $10 |
at Bankrate
Why we picked it
Capital One garnered a spot on our list for its excellent savings account rate of 3.90% APY, lack of fees, and robust online tools. Capital One’s app gives users the power to manage their Capital One credit cards and deposit accounts, receive purchase notifications, pay bills, send money from their accounts, check their VantageScore, and more.
Learn more: Read our Capital One 360 review
Pros
- No monthly maintenance fees
- No minimum deposit requirements on checking and savings
- Simple mobile banking, including making deposits
Cons
- Higher outgoing wire fees versus other online banks
- Potential to be denied a checking account if you have a poor or limited banking history
What to consider before banking with Capital One
While Capital One does have diversified products and banking features, it does not offer MMAs.
More rates and products from Capital One
Capital One has checking, savings, and CD accounts that earn interest and have no cost to open.
| Account type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| 360 Checking | 0.10% | N/A | $0 | $0 |
| 360 Savings | 3.90% | N/A | $1 | $0 |
| 360 CDs | 3.50% to 4.00% | 6 months to 5 years | $0 | $0 |
| 360 Checking | |
|---|---|
| APY | 0.10% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| 360 Savings | |
| APY | 3.90% |
| Term lengths | N/A |
| Minimum opening deposit | $1 |
| Monthly maintenance fee | $0 |
| 360 CDs | |
| APY | 3.50% to 4.00% |
| Term lengths | 6 months to 5 years |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
Discover: Best for CD rates
Discover Bank is part of the Discover Financial Services company, which is primarily known for its credit card products. Discover Bank, however, offers a range of other financial services beyond just credit cards, including excellent online deposit account options.
Discover Bank
| Checking account APY | 0.00% |
| Savings account APY | 3.9% |
| ATM network | Allpoint and Money Pass |
| Fees | Overdraft fee: $0 Debit card replacement: $0 Check reorder: $0 Outgoing wire transfer: $30 |
at MoneyLion
Why we picked it
The high-yield savings account from Discover boasts a competitive 3.90% APY and no monthly fees while its checking account offers 1% cash back on up to $3,000 in monthly debit card purchases with no monthly fees or minimum balance requirements. Account holders also have access to an expansive surcharge-free ATM network.
Learn more: Read our Discover Bank review
Pros
- High APYs on savings and CDs
- Low to no fees on deposit accounts
- 1% cash back on checking account
Cons
- Limited deposit account offerings
What to consider before banking with Discover
Discover’s checking account does not offer interest but it does have a 1% cash back program. While its CDs have some of the highest APYs in the market, there is a steeper buy-in that requires $2,500 to open the account.
More rates and products from Discover
Discover has several high-yielding savings and checking accounts as well as CDs.
| Account type | APY | Term lengths | Minimum opening deposit | Monthly maintenance fee |
|---|---|---|---|---|
| Checking | N/A; but 1% cash back | N/A | $0 | $0 |
| Savings | 3.90% | N/A | $1 | $0 |
| Money market | 3.7% | N/A | $0 | $0 |
| CDs | 2.00% to 4.10% | 3 months to 10 years | $0 | $0 |
| Checking | |
|---|---|
| APY | N/A; but 1% cash back |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| Savings | |
| APY | 3.90% |
| Term lengths | N/A |
| Minimum opening deposit | $1 |
| Monthly maintenance fee | $0 |
| Money market | |
| APY | 3.7% |
| Term lengths | N/A |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
| CDs | |
| APY | 2.00% to 4.10% |
| Term lengths | 3 months to 10 years |
| Minimum opening deposit | $0 |
| Monthly maintenance fee | $0 |
What is online banking?
Online banking allows customers to perform most of their banking services online via desktop or mobile app. Through online banks, customers can access their accounts electronically to check balances, make mobile check deposits, transfer money between accounts, pay bills and, often, apply for loans.
Without the need to visit a physical branch, online banking typically offers more flexibility and ease of use.
The pros and cons of online banks
Online banks have various pros and cons that you should be mindful of before deciding to bank with a digital-first institution.
Pros
- Online banks may charge no fees or lower fees: Online banks without brick-and-mortar locations save on the overhead costs that traditional banks are responsible for. They may pass on these savings to customers in the form of reduced fees.
- Online banks may offer higher APYs: Fewer overhead costs can also translate to higher APYs on savings products.
- You could benefit from a wider range of digital tools: Online banks with a strong digital presence may invest more in online and mobile banking platforms to make up for the lack of a brick-and-mortar presence. As a result, you could have access to a wider range of digital budgeting and account management tools, customer service options, and more.
Cons
- For customers who like the option of walking into a physical branch, online-only banks may not be the best fit: Sometimes, resolving an issue related to your account is handled better by working with a teller face-to-face, especially for customers who aren’t as digitally savvy.
- If you deposit cash frequently, an online-only bank could end up costing you more in fees: Because online-only banks don’t have physical branches, you’ll need to ensure that you find one that offers a fee-free ATM network. In the event that they don’t, it could be challenging to make cash deposits and you’ll likely be responsible for a fee each time you do deposit cash.
How to choose the best online bank for your needs
Selecting the best-suited online bank for you involves various factors to ensure it meets your financial needs and preferences:
- Fees: Look for an online bank that offers low or no fees for basic services, such as monthly maintenance and ATM usage.
- APYs: Check the APYs on the savings, checking, MMAs, and other deposit products across different banks to ensure you are getting competitive rates.
- Minimums for opening accounts: Some online banks require a minimum deposit to open an account or a monthly balance requirement, so be sure to find one that matches your financial capability.
- Extra features and products: Consider additional features, such as budgeting tools, cash back rewards, bonus offers, or investment options that the bank might offer.
- ATM network: Ensure the online bank has a wide network of fee-free ATMs or reimburses ATM fees.
- Mobile experience: Make sure the bank’s mobile app is user-friendly and offers a wide range of capabilities through the app, as this will be your primary method of banking.
- Safety: Verify that the online bank uses robust security measures, such as encryption and multifactor authentication (MFA), to protect your personal and financial information.
How to open an online bank account
Opening an online bank account is fairly standard across financial institutions and can be completed in just a few steps:
- Choose a bank that suits your needs: Research an online bank that aligns with your financial goals, budget, and preferences.
- Visit the bank’s website or app: Access the bank’s official website or download its mobile app to begin the account opening process. Also, check out the reviews on the banking app.
- Open an account: Fill out the required information, such as your name, address, Social Security number, and email.
- Verify the account: Complete the verification process, which may include submitting legal identification documents and answering security questions.
- Deposit money: Fund your new account by transferring money from an existing bank account or depositing a check via the mobile app.
Online banks vs. traditional banks
Online banks and traditional banks have similarities in terms of the products and services they can offer, but each has distinct features that cater to different customer needs.
Online Banks
- Typically have limited or no physical branch locations
- Tend to offer better rates and APYs due to lower overhead costs
- Often have a smaller range of services compared to traditional banks
- Provide robust digital tools and features
- Likely offer fewer options for cash transactions
Traditional Banks
- Often have extensive physical branch networks
- Offer a comprehensive range of banking services, including in-person financial help
- Sometimes have higher fees and lower rates compared to online banks
- Provide easy access to cash deposits and withdrawals
- May have more established customer service infrastructure
Who are online banks best for?
Online banks are ideal for consumers who prefer managing their finances digitally and are comfortable using mobile apps and online platforms. They tend to be beneficial for those looking to maximize their savings with higher interest rates and lower fees. Additionally, if you rarely visit a bank branch and value the convenience of 24/7 access to your accounts, an online bank could be the right choice for you.
However, if you often require in-person banking services, such as cash deposits or face-to-face financial advice, a traditional bank might better suit your needs. It’s also worth considering how comfortable you are with technology and whether you have reliable internet access to manage your banking online.
Our methodology
The Fortune RecommendsTM team compared more than 30 online banks and credit unions to help you find the best institution to help you meet your needs. Our top picks are available to customers across the U.S. no matter where you’re located, subject to the terms of account, product, and service. Some of our picks have brick-and-mortar locations; however, all of our picks offer online banking for customers nationwide.
To come up with our final list, we we ranked the best online banks on the following categories and weighted each category as set forth in the percentages below:
- Checking and savings APY (40%): This percentage represents the real rate of return on your checking and savings account balance; the higher the APY, the better. For accounts with tiered APYs, we assumed a minimum balance of $1.
- Account and product offerings (10%): We rewarded each online bank a point for each account type and service it offered. This included additional deposit accounts, investment accounts, lending services, credit cards, and more.
- Overdraft fee (10%): Most banks will charge you a fee when you spend more than what you have in your account. We ranked online banks with lower or zero overdraft fees higher on our list.
- Monthly service fees (20%): Some banks charge monthly maintenance fees. We ranked banks with lower or zero monthly fees higher on the list.
- Mobile application rating (5%): We calculated the average mobile application rating for each bank or credit union using ratings from the App Store and Google Play. We rewarded online banks that had a higher average mobile application rating.
- Free ATM access (5%): Accounts belonging to financial institutions that have a vast network of surcharge-free ATMs ranked higher on our list than alternatives that did not offer ATM access.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave phone support the most weight.
- Security (5%): As online banks, digital security is critical. We evaluated which institutions offer two-factor authentication and have been free of data breaches within the past five years.
Note that the account requirements, fees, and perks offered by these online banks may be available for limited time periods. Interest rates are subject to change at the discretion of the bank, which could impact how much interest you earn. All the banks on this list are insured by the FDIC.
Dig deeper: learn more about our banking methodology.
Frequently asked questions
How do you keep your online bank account safe?
Be sure to change your password regularly to keep your account secure and less susceptible to being hacked. You can also opt to use multi-factor authentication on your phone or laptop, which adds another layer of security each time you’re logging into your account by asking for a text, email, or phone-call verification code.
Do online banks charge higher fees?
Fees vary from bank to bank, but generally online-only banks tend to charge lower fees than banks with brick-and-mortar locations because these institutions don’t have to pay the same overhead costs that banks with physical locations do.
Is my money safe in an online bank?
Your money is just as safe in an online bank or credit union as it is in a brick-and-mortar institution. What’s important to make note of is a bank’s deposit insurance. Be sure to verify that your financial institution is fully backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
How do I open a bank account online?
To open a bank account online, first choose an online bank that meets your financial needs. Visit the bank’s website or download its app, then fill out the application form. Complete the verification process and make an initial deposit to activate your account.
How do I deposit and withdraw money with my online bank account?
Depositing money into an online bank typically can be done through mobile check deposits, direct deposits, or electronic transfers from another bank. Withdrawing money is typically done via bank transfer or by using an ATM within the bank’s network.
Are online banks FDIC-insured?
An FDIC-insured online bank typically has “member FDIC” on the bottom of their main page or will have a number identification. You can also verify this by doing a bank search by name on the FDIC’s website. An FDIC-insured bank means your deposits are protected up to $250,000 per depositor, per bank.
Do online banks have ATMs?
Many online banks partner with ATM networks to provide fee-free access to cash withdrawals. Additionally, some online banks offer reimbursement for ATM fees.
How do you deposit cash into an online bank account?
Depositing cash into an online bank account can be more challenging because most do not accept cash deposits. Options include using a network of partner ATMs that accept cash deposits, purchasing a money order and depositing it via mobile check deposit, or transferring funds from a traditional bank account where you've deposited the cash.
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