The face of banking changes with each passing year. Indeed, over 60% of banking customers say they’re likely to switch to an online-only bank.
Online-only banks have gained popularity in the last few years, primarily for offering customers lower fees and better interest rates than some of the most historic traditional banks. Online-only banks can afford these rates because they’re not subject to the same overhead costs as banks with physical branches.
Some people avoid online-only banks altogether. However, most online banks must meet the same requirements as traditional banks, including those surrounding security measures.
If you’re still on the fence about online-only banks, you’re not alone. You can learn more about the best online banks below to help you decide.
Choosing between online-only bank accounts can be challenging as well. With our comparisons below, you can see which online banks offer you the best perks without requiring you to jump through several hoops.
Are you ready to learn more about the best online banks? Let’s get started!
10 Best Online Banks
If you’re looking for some of the best digital banks, the list below includes superior online-only banks that offer low fees, high-interest rates on checking and savings account balances, and low-interest rates on various loans.
Compared to even the best national banks, they pass the overhead savings on to the customer—in a good way. If you're unsure about online banking, check out the superior online banks below.
1. Axos Bank
Best for small businesses looking for a more modern solution, Axos Bank offers Basic Business Checking with no monthly maintenance fees.
The Axos Basic Business Checking is free, and you get no monthly maintenance fees, no minimum deposit requirement, and unlimited domestic ATM fee reimbursements.
Accessing your Axos bank account is easy with an extensive network of ATMs. You also get your first 50 checks free when you open an account.
You can easily deposit checks and pay your bills on your mobile device with an Axos Bank account. Axos also reimburses unlimited domestic ATM fees. Right now, you can get a $400 welcome bonus (through this link) when you open a new checking account.
Axos Bank's Basic Business Checking account is a free checking account for small businesses. It doesn't have a minimum balance requirement or monthly maintenance fee, and it offers unlimited item processing, including up to 60 remote deposits per month. The account also offers a sign-up bonus of up to $400.
If you're looking for a checking account to supplement your online banking, Axos Bank offers several savings accounts to choose from.
The Axos Bank® Rewards Checking is a free account with unlimited ATM fee reimbursements. You don't have to worry about keeping a minimum balance with Axos' Rewards Checking.
As with the bank's other checking accounts, there are no monthly fees, and all fees charged by domestic ATM operators are reimbursed. Axos doesn't charge any ATM fees itself.
You can open a High-Yield Savings account, money market account, or CD, or take advantage of many other online banking services.
2. CIT Bank
If all the checking account details we’ve covered are starting to blur together, don’t worry. Here are the main accounts you can open with CIT Bank:
- eChecking Account: This checking account requires $100 to open. However, you don’t have to worry about a monthly service fee or minimum balance requirements. CIT Bank reimburses ATM fees up to $30 monthly. You get 24/7 access to your account online or via the mobile app and pay bills with Apple Pay, Zelle, or Samsung Pay.
- Savings Connect Account: This account offers a high-interest rate to build up your balance.
- Savings Builder Account: Build your savings with this basic savings account.
- Platinum Savings Account: This account earns you an impressive annual percentage yield (APY) if you have a balance of $5,000 or more.
This online bank requires a $100 opening deposit for its savings accounts but doesn’t offer an ATM card for account access. You can also open CDs and money market accounts to build your savings balance.
You can access several types of loans with this online bank, including equipment financing and home and business loans. This online bank doesn’t partner with an ATM network, making accessing your funds on the go challenging.
CIT Bank doesn’t offer credit cards or paper checks. However, your funds are FDIC-insured up to $250,000.
Discover popular CIT Bank promo codes and popular accounts below:
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CIT Bank Savings Connect has an annual percentage yield of up to 4.50%, which is higher than the national average interest rate on savings accounts. This account does not charge a monthly Service Charge. |
Experience a convenient and secure all-digital way to grow and access your money. Earn a competitive interest rate. Easily pay people and bills, with no monthly fees. |
Interest that adds up in your family's best interest. Open an account today and start earning. Open an account with $100 to earn up to 1.00% APY. |
Online and mobile banking is easy and convenient with an eChecking account. CIT customers can access checking accounts 24 hours a day online or through the mobile app. Checking accounts can be opened with a $100 minimum opening deposit. |
CIT Bank CDs provide a safe, secure way to grow your savings. Choose from a selection of CD rates and terms to help you stay on target for your savings goals. |
CIT Bank Savings Connect has an annual percentage yield of up to 4.50%, which is higher than the national average interest rate on savings accounts. This account does not charge a monthly Service Charge.
Experience a convenient and secure all-digital way to grow and access your money. Earn a competitive interest rate. Easily pay people and bills, with no monthly fees.
Interest that adds up in your family's best interest. Open an account today and start earning. Open an account with $100 to earn up to 1.00% APY.
Online and mobile banking is easy and convenient with an eChecking account. CIT customers can access checking accounts 24 hours a day online or through the mobile app. Checking accounts can be opened with a $100 minimum opening deposit.
CIT Bank CDs provide a safe, secure way to grow your savings. Choose from a selection of CD rates and terms to help you stay on target for your savings goals.
3. Ally Bank
Known for some of the best free checking accounts, Ally Bank is a full-service online bank that’s been around since 1919.
Many of Ally’s checking accounts come with no monthly maintenance fees, minimum balance requirements, or charges for Allpoint ATM usage.
Indeed, you can get up to $10 in ATM fee reimbursements each month. Ally also offers excellent customer service to help you when needed.
With an Ally bank account, you can pay your bills and make mobile check deposits for free. You can also send and receive money with Zelle.
Ally offers checking, savings, and investment accounts. You can also open several IRAs with Ally Bank to save for the future.
Unfortunately, Ally Bank doesn't accept cash deposits. Many online banks struggle with allowing customers to deposit cash because there are no physical branches.
If you want to deposit cash, you must do so with your traditional brick-and-mortar banks. Having a checking account at a traditional bank can help you account for the downfalls of online banks.
4. Capital One 360
Capital One offers some of the best bank accounts if you’re looking for overdraft protection, high-yield savings accounts, and the ability to meet with financial advisors at many cafe locations.
Account holders also gain access to over 70,000 Allpoint ATMs for free and peer-to-peer payments through Zelle.
Known for superior customer service, Capital One offers a user-friendly mobile app to help you manage your funds from practically anywhere. Capital One 360 accounts don’t require a monthly service fee or minimum opening balance.
While Capital One does offer a lower annual percentage yield (APY) than many other online banks, it doesn’t charge foreign transaction fees. You can also pick from three methods for covering overdrafts with this bank to avoid costly overdraft fees at Capital One.
You can consider opening a new account and taking advantage of several ongoing Capital One promotions.
5. Charles Schwab
This online bank is best for travelers and investors. Checking and savings accounts come with no monthly fee or minimum balance requirements.
Charles Schwab will also refund all your ATM fees. To open a basic checking account, you only need an opening deposit of a penny.
A Charles Schwab checking account includes free standard checks, mobile check deposits, and online bill pay via a mobile app. You aren’t liable for foreign transaction fees incurred by your debit card either.
You can open Charles Schwab checking and savings accounts online without having to deposit cash. Savings accounts earn respectable annual percentage yields for an online savings account, much higher than you'd find with a national bank.
Additional banking services besides savings and checking accounts include credit cards, investment products, small business banking, and IRAs. If you're looking for a one-stop shop for all your personal bank accounts, Charles Schwab offers online-only banking that fits the bill.
6. Discover Bank
Discover is known for offering some of the best bank account bonuses, especially for new members. This online-only bank is based in Delaware and offers checking and savings accounts, CDs, and loans.
You might also know Discover Bank for its superior customer service, which is available 24/7. You can also access your account from over 60,000 Allpoint ATMs for free.
Open a Discover Cashback Debit account, and you can earn up to 1% cashback on select purchases, up to $3,000 each month. This account has no monthly fees, minimum opening balance requirements, or overdraft fees.
A Cashback Debit account also opens the door to getting paid up to two days early. Discover also offers a high-yield savings account with no monthly fees, minimum opening deposit, or monthly balance requirements.
To open a Discover money market account, you must make a $2,500 minimum deposit. You can also apply for several credit cards or open CDs and IRAs with this online bank.
Unfortunately, Discover doesn’t reward you for having multiple accounts. However, you can access your funds via the website or mobile app.
7. LendingClub Bank
This online bank offers one of the best rewards checking accounts on the market. LendingClub Bank Rewards Checking requires a $25 minimum deposit to open.
Open an online checking account with LendingClub Bank to earn unlimited 1% cash back with your new debit card. You can also earn a competitive annual percentage yield (APY) if your balance is over $2,500.
To earn the unlimited 1% cashback, you must receive $2,500 or more in direct deposits or keep an average balance of $2,500 or more in your checking account. This bank account also gives you access to free ATMs.
However, you don’t have to meet specific minimum balance requirements to keep the online bank account open. There are no monthly service fees associated with this online bank account.
In addition to a rewards checking account, LendingClub Bank also lets you deposit cash at any LendingClub Bank ATM. You can also withdraw cash and access your bank accounts at these machines.
LendingClub Bank offers your first order of checks for free. You can also get paid up to two days early.
8. nbkc bank
The National Bank of Kansas City offers online checking accounts, money market accounts, and CDs. Checking and money market accounts require no monthly fees or minimum opening deposits at nbkc bank, one of the largest banks in the U.S.
An nbkc bank account gives you access to free online bill pay and mobile check deposits via the mobile app. You also get a free set of starter checks with this checking account.
Account holders can also access over 37,000 MoneyPass ATMs for free. This online bank offers up to $12 in ATM fee reimbursements each statement cycle and doesn’t charge overdraft fees.
The minimum deposit for a CD at nbkc bank is either $250 or $1,000 depending on the term length of the CD. This online bank works well for customers looking to manage their accounts from one dashboard.
9. Synchrony
Unfortunately, Synchrony doesn’t offer a checking account. However, you can open a high-yield savings account online without making an initial deposit.
Synchrony savings accounts also have no monthly service fees or minimum balance requirement. Savings account holders receive up to $5 in ATM fee rebates each statement cycle.
You receive an ATM card with a Synchrony savings account. However, you cannot earn a higher savings interest rate with a higher savings account balance. Your Synchrony online savings account offers free mobile check deposits and access to money market accounts, CDs, and IRAs.
You can contact Synchrony customer service via live chat, email, and over the phone. However, customer service hours are limited compared to other online banks.
10. EverBank (Previously TIAA Bank)
Open a Yield Pledge Checking account with EverBank, previously TIAA Bank, and you can earn unlimited ATM refunds if you keep a $5,000 minimum balance.
If you don’t meet the minimum balance requirement, EverBank will still reimburse you up to $15 in ATM fees each statement cycle when you use your debit card.
Opening deposits are set at $100, but this account has no monthly service fees. EverBank also guarantees that your interest rate stays within the top 5% of similar checking accounts within the market.
EverBank also offers several money market accounts and CDs. These accounts have no monthly fees, but you must deposit $1,000 to open a CD.
How to Protect Your Account Information with Online Banks
Security should be a top priority with any bank, but online banking can open your personal and financial information to scammers. Here’s how you can protect yourself while banking online:
- Log into your account from a secure terminal only, whether that’s a desktop computer or smartphone
- Log out of your digital bank account after each session
- Opt out of password-saving or auto-fill features
- Avoid using common passwords that are easily guessed
- Consider using biometrics (your thumbprint or Face ID) for mobile app account access
- Monitor your balance and individual charges to catch fraud early on
- Don’t share your personal information, including log-in credentials, with anyone unless you’ve verified they’re a legitimate representative from your bank
It’s better to be safe than sorry with your online bank. Don’t hesitate to add security measures of your own to keep your account and personal information secure.
If you bank via a mobile app, it's best to install some sort of malware detection on your smartphone. Mobile banking with your debit card can put you at a higher risk, but with quality security measures, you can rest assured your information is safe with any digital bank.
FAQs
What should you look for in an online bank?
As you research online banks, pay attention to the monthly fees, opening deposit requirements, annual percentage yield (APY), interest rates (for loans and savings deposits), deposit and withdrawal limits, ATM access, ways to contact customer service, and security measures. You should also prioritize online banks that offer Federal Deposit Insurance Corp. (FDIC) insurance to protect your funds.
Many online banks offer checking and savings accounts that make online banking a cinch. These online financial institutions may require that you open a checking account before you open a savings account, so be sure to read the fine print.
Is it safe to bank online?
Online banking is safe if you do your research and find legitimate online banks and credit unions. For many online banks, FDIC-insured balances are a given, even if there are no physical branches.
Each bank on our list above is legitimate and offers online-only access that keeps your fees and loan interest rates low. If you're wondering, “Are online banks safe?” you're already doing your due diligence.
What services do some of the best online banks offer?
Some of the best online-only banks offer services similar to those you’d find at a traditional bank with physical branches. For example, you can open accounts online, apply for loans and credit cards, and compare checking and savings accounts.
However, some online deposit accounts don't let you deposit cash. Indeed, some ATMs that allow you to withdraw cash refuse cash deposits.
What are some of the best online banks?
The best online banks include Ally Bank, Discover, Capital One, nbkc bank, and LendingClub Bank. You can also bank online with Axos Bank, CIT Bank, Synchrony, and TIAA Bank.
If you're looking for online credit unions, Alliant Credit Union is a superb choice. Online credit unions offer competitive interest rates, a low or no monthly fee, and many of the same banking services you're used to seeing from online banks.
Many people prefer Alliant Credit Union because it offers transparent pricing for its checking and savings accounts. You can also open many CDs to increase your investment portfolio.
Alliant Credit Union offers one of the best CD rates if you are looking for a jumbo certificate and can get started with a deposit as low as $1,000.
Alliant Credit Union offers share certificates, which are a credit union's version of a certificate of deposit (CD). Alliant's CDs range from three months to five years, and are available with a minimum deposit requirement of either $1,000 or $75,000. Alliant's CD rates range from 3.65% to 4.30% APY, which is higher than the average CD rate.
Online Banks: The New Age of Modern Banking
Online banking can be incredibly convenient and effortless with the best banks. Though you can’t visit a physical branch, most people aren’t visiting banks like they used to anyways.
We hope this article helps you find the best online bank that fits your needs. You’ve got plenty of options, each offering perks and bonuses to help boost your finances.
If you’re unsure about online banks, you can also open a bank account and only put a few bucks in to try it out. You may find that you close your traditional account and move your balance over after seeing how much more online banks can offer compared to traditional banks.
Which of the best online banks will you work with?
