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The best online banks provide a good balance of high APYs, low fees, and reasonable minimum requirements.
We have analyzed the offerings from countless online banks available nationwide to identify some of the best choices.
Below, you can find detailed information about why we selected each institution, the advantages and disadvantages they offer, and access to individual bank reviews.
Best Online Banks of June 2024
Here are the best online banks that you can open an account with today:
- American Express National Bank
- Alliant Credit Union
- CIT Bank
- GO2Bank
- Quontic
- Discover
- Ally
- EverBank
- Capital One 360
- Axos
- LendingClub
- Varo Bank
1. American Express National Bank: Best Overall
- Our Rating: 3 / 5
- Savings: 4.25% Annual Percentage Yield (APY)
- CDs: Multiple Options
- Features: Extensive, Convenient, 24/7 Support
American Express offers a Rewards Checking account where you can earn 1.00% APY on your balance and earn 1 Membership Rewards® point for every $2 of eligible debit card purchases.
To make the online bank even better they also offer the American Express® High Yield Savings Account with a current rate of 4.25% APY (as of April 25, 2024), no fees, multiple CDs, and 24/7 customer service.
The American Express® High Yield Savings Account has a solid yield on all balances with $0 maintenance fees, no minimum opening deposit or minimum balance requirements.
Want to tie up your money for a while at a higher interest rate? CD yields are very competitive across the board and you can choose from seven CD options ranging from six months to five years.
There are early withdrawal penalties to be aware of 90 days’ interest for terms under 12 months, 270 days’ interest for terms between 12 and 48 months, 365 days’ interest for terms between 48 and 60 months, and 540 days’ interest for terms of 60 months or longer.
Read Our Review: American Express Savings Account Review
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are those of the author alone, and have not been reviewed, approved, or otherwise endorsed by any savings product issuer.
2. Alliant Credit Union: Best Credit Union
- Our Rating: 4 / 5
- Savings: 3.10% APY
- CDs: 3 months to 5 years
- Features: Savings buckets, extensive ATM network, no monthly maintenance fees
Ally Bank is a full-service online bank. It has low minimum deposit requirements and doesn’t charge monthly maintenance fees.
Ally Bank offers high yields, low minimums, and exceptional savings buckets to help you save for various goals.
Its deposit accounts include:
- Savings: Earn 4.25% APY on all balances, use savings buckets to organize your savings, and create boosters with round-ups and recurring transfers
- Money Market: Earn 4.40% APY on all balances, use the Allpoint ATM network to access your funds for free and deposit checks remotely
- Spending: No monthly maintenance fees and up to $10 in non-network ATM reimbursements, get early access to direct deposit and have access to overdraft protection
Read Our Review: Ally Bank Review
8. EverBank (Formerly TIAA): Guaranteed High Rates
- Savings: 5.00% intro rate, then 4.50%
- CDs: 3 months to 5 years
- Features: Interest-bearing deposit accounts, no hidden fees, ATM reimbursements, MMAs
If you want reassurance you have the highest APYs, EverBank offers a yield pledge that promises to pay within the top 5% of the most competitive yields available.
EverBank is a premium banking service for consumers and businesses, offering many great products for consumers including:
- Yield Pledge Checking: Pay no monthly maintenance fee, make mobile check deposits, and access to Zelle and online bill pay while earning 0.25% on any balance
- Yield Pledge Money Market: Pay no monthly maintenance fee, have access to your funds with checks and a debit card, and earn an intro 4.75% APY on any balance, with no opening balance requirement
- Yield Pledge Online Savings: With no minimum required opening balance and no monthly maintenance fees, it’s easy to save with the 5.00% APY paid on the EverBank savings account
- CDs: Terms are available from 3 months to 5 years with no monthly maintenance fee and a 20-day advance notice regarding maturity and rates range from 3.95% to 5.25%
Read Our Review: EverBank (formerly TIAA) Bank Review
9. Capital One 360: Best for Online and In-person Banking
- Savings: 4.25% APY
- CDs: 6 to 60 months
- Features: No minimum deposit or balance requirements, easy-to-use mobile app, Zelle, 2,000 ATMs
If you love being able to pop into the bank when you need in-person service but want the benefits of online banking, Capital One 360 provides the best of both worlds with 750 branches and 2,000 ATMs.
Capital One 360 is a great online high-yield bank with the benefit of in-person branches if you’re lucky enough to have a Capital One 360 branch or cafe near you.
Capital One offers the following accounts:
- 360 Performance Savings: There are no monthly maintenance fees or required balance, and you can earn 4.25% APY, use mobile check deposit, and set up automatic savings plans
- 360 Checking: Access to 70,000+ fee-free ATMs, no monthly minimums, and no monthly fee; get paid early via direct deposit and add cash to your account at many retailers
- 360 CDs: Capital One has CDs with various terms, no minimum balance required, and you can get paid interest monthly, annually, or at the end of the term
- Kids’ savings: Help kids earn interest and make their money grow with 0.30% APY with no fees or minimum balance required
- MONEY Teen Checking: Open a joint checking account with your teen and help him learn how to manage money while having parental controls to ensure good money habits, all with no fees or minimum requirements
Read Our Review: Capital One 360 Review
10. Axos: Checking Account Selection
- Savings: Up to 0.61% APY
- CDs: 3 to 60 months
- Features: 24/7 customer service, daily compounded interest on savings, and a user-friendly mobile app
Axos Bank has a large selection of checking accounts and a vast ATM network of 91,000 ATMs. Axos Bank pays high APYs, cash back rewards, and charges little to no fees.
Axos Bank offers unique checking account options, and savings options with no monthly fees to make it easy to make your money grow, including:
- Essential Checking: If you have direct deposit, get early access with this checking account along with unlimited ATM reimbursements, and no monthly maintenance or overdraft fees
- Rewards Checking: If you keep large balances in your checking account, earn up to 3.3% APY and let your funds grow
- Cashback Checking: If you use your debit card often, earn 1% back on your purchases up to $2,000 a month and pay no monthly maintenance fees
- High-yield Savings: Earn 0.61% APY as of September 25, 2023, pay no fees, have digital money management tools, and no minimum balance requirements
- High-yield Money Market: Take advantage of higher yields with access to your funds via debit card or check with a minimum opening balance of $1,000, while earning 0.25% APY
- CDs: Earn up to 0.20% APY on various terms from 3 to 60 months, with the option to electronically transfer earned interest throughout the term
Read Our Review: Axos Bank Review
11. LendingClub: Best Rewards Checking
- Savings: 4.50% APY
- CDs: 6 months to 5 years
- Features: FDIC insured, no monthly fees, the option to earn cash back, high yields
LendingClub isn’t just for loans, they have robust banking products too including high-yield savings, rewards checking, and CDs.
LendingClub has robust options for consumers looking for banking products that pay high interest rates and don’t charge monthly maintenance fees:
- High-yield savings: With $100 opening balance requirements, no monthly fees, and a free ATM card, earning 4.50% on your savings is a great way to reach your financial goals
- Rewards checking: Get unlimited 1% cash back on debit card purchases, pay no monthly fees, and get reimbursed for non-network ATM transactions while earning interest of 0.15% APY
- CDs: Earn 4.00% to 5.50% on CDs of various terms ranging from 6 months to 5 years
Read Our Review: LendingClub Review
12. Varo Bank: Great Customer Service
- Savings: Up to 5.00% APY
- CDs: N/A
- Features: 40,000 fee-free ATMs, Zelle, cashback on purchases made with your debit card, and no monthly fees
Varo Bank offers a little bit of everything with opportunities for cashback, high APYs, early access to direct deposit, and no hidden fees
Varo Bank is an online bank but with a robust ATM network. They have only a few accounts, but they offer robust features that make it easy to grow your money.
- Checking: No monthly fees, no overdraft fees, early access to direct deposit, and 40,000 fee-free ATMs
- Saving: Earn up to 5% APY on up to $5,000 with no fees and opportunities for automatic round-ups for more savings
- Build Credit: Easily build credit with your own money and a secured Varo Believe card, with no interest and no fees, but with the opportunity to build a solid credit score with regular use
Read Our Review: Varo Bank Review
What is Online Banking?
Online banking is like traditional banking, except you conduct transactions online or at an ATM.
Some banks allow you to deposit cash at local retailers, but be careful because there are sometimes fees.
The nice thing about online banking is you can bank 24/7; you don’t have to worry about traditional bank hours.
You can electronically transfer funds, deposit checks with the bank’s mobile app, and use a bank’s unique features.
Advantages of Online Banks
If you’re weary of banking online, check out the advantages you can take advantage of:
- Little to no fees
- High APYs
- Unique features, such as round-ups and savings buckets
- Automatic savings transfers
- Automatic bill pay
- Access 24/7 via online or a mobile app
Online Banking vs. Traditional Banking
So what’s the difference between online and traditional banking?
It comes down to where you bank, either from your couch or the bank teller’s counter.
Physical banks have tellers, but you can only bank during their hours and must visit the bank in person. However, many traditional banks offer online services today, too.
Online banking offers the same services, but from your home or anywhere you have an internet connection.
The toughest thing about online banking is how you deposit or withdraw cash. Some of the best online banks have a robust ATM network that allows you to handle cash, but not all do, so always find out first.
Are Online Banks Safe?
Always choose an FDIC-insured online bank that uses safety features, such as two-factor authentication and bank-level encryption.
If a bank is FDIC-insured, your funds are protected up to $250,000 per depositor should the bank close.
How to Choose the Best Online Bank
When choosing an online bank, consider these factors:
- How much does the account cost? Look for no-fee bank accounts.
- What is the minimum opening deposit, and can you meet it?
- What are the ongoing balance requirements?
- How convenient is the ATM network?
- Does the bank reimburse non-network ATM fees?
- Does the bank pay interest? If so, how much?
How to Open an Online Bank Account
As you probably guessed, you can open an online bank account online.
You’ll need basic information such as your name, address, birth date, and Social Security number. You must also upload a government-issued ID to prove your identity.
Once you open the account, you’ll link an external account to fund it, or you may be able to deposit cash at a local ATM.
Methodology: How We Select the Best Online Banks
We use several key factors to evaluate and find the best online banks, including the following:
- Available account types
- Interest rates
- Account minimums
- Monthly maintenance fees
- Other account fees
- Investment and tax-advantaged options
- Credit building options
- Budgeting and money management features
Online Banking FAQs
Still, have questions about online banks and managing money online? We have answers.
How Much Does Online Banking Cost?
Online bank rates, yields, and fees are subject to change at banks’ discretion. Check their websites or call customer service for up-to-date information about specific accounts and bank policies.
Online banks are generally more affordable than traditional banks. They’re less likely to charge monthly maintenance fees on checking and savings accounts, and many have fewer hidden fees, too.
What’s the Interest Rate on an Online Bank Account?
That also depends on the individual bank, but many online accounts feature higher yields than traditional banks.
Online banks have less overhead than traditional banks, and they don’t need to pay to keep big, centrally located branches open or pay people to work at them. Their operations are more efficient, which allows them to pass the savings on to customers via higher rates and lower fees.
How Do You Enroll in Online Banking?
It depends on the bank and its website or app structure, but it’s usually straightforward. In fact, with an online-only bank, enrollment is usually automatic. You don’t have to complete a separate application or even click a button to activate your account.
However, you must create a unique username and password to get started. You may be asked to do this as part of the initial application process or once your account is approved. You’ll also need to link at least one external funding source to transfer money into your account.
Can You Get a Mortgage From an Online Bank?
Some online banks offer home loans (mortgages) and other credit products. These banks are larger online banks with high name recognition, like Ally Bank and Capital One Bank. Look for a “Mortgages” or “Home Loans” tab on the homepage or your account dashboard.
Be aware that some online banks outsource mortgage origination to other companies. In other words, if you apply for a mortgage through your bank, your loan officer might work for someone else. This isn’t necessarily a bad thing, but it could mean a different level or style of service than you’re used to.
And don’t expect your online bank to offer better mortgage rates than other lenders. The mortgage loan business is highly competitive, and direct lenders with even lower overhead may be able to undercut online banks.
Finding the Best Online Banks
The best online banks on this list offer a great combination of FDIC-insured banking products, solid yields, open access, and helpful customer service.
Before choosing one, look closely at the features that set it apart from the competition: rewards checking, flexible withdrawal terms for CDs, particularly high account yields, a socially responsible corporate philosophy, and so on.
