Best Online Banks

Consider which online banking features would make budgeting and reaching your financial goals easier. We’ve compared the top perks from the following four online banks.

Ally Bank is a pioneer in the online banking space, having formed in 2009. It continues to be a robust online bank with a wide range of financial products, including savings and checking accounts, investment vehicles and accounts, and loans.

What makes Ally Bank a user-friendly online bank is its transparency, as it’s upfront with the rates and fees on its products. You don’t need a minimum deposit to open an Ally Bank online savings account, and you won’t pay monthly maintenance or overdraft fees. You also won’t pay fees on cashier’s checks or expedited Automated Clearing House (ACH) transfers. Additionally, its credit cards come with no over-the-limit fees or returned payment fees. It is not completely fee-free, though; there are fees for expedited delivery ($15), outgoing domestic wire ($20) and account research ($25).

Since Ally Bank is completely online, you can’t deposit cash into your account or visit an in-person branch. You can still deposit checks via your mobile app and pull out cash at one of 43,000 free-to-use ATMs across the country. Plus, its 24/7 customer service line ensures you won’t feel neglected when it comes to account issues.

Ally Bank pushes savings with high interest rates and tools that make it easier to save. It offers Buckets, which is a feature that allows customers to set money aside for specific goals without needing to create a new bank account. The Surprise Savings feature analyzes your linked checking account for money that is safe to transfer so your savings account grows even when you are busy.

Originally, SoFi started as a student loan refinancer. Now, it is a full-service online bank that offers high-yield savings accounts, as well as a variety of other financial services such as loans, investing, insurance and small business financing. SoFi is FDIC-insured, and accounts are kept safe with two-factor authentication and rigorous third-party penetration testing done on the overall site.

SoFi’s online savings and checking accounts come with no fees, and you do not have a minimum account balance or a minimum deposit requirement. Customers will enjoy no overdraft fees either and are covered up to $50. Savings accounts earn as much as 3.75% APY while checking accounts earn as much as 2.50% APY.

If you choose to use SoFi as your personal loan lender, you will also see the company’s “no fee” motto there too. SoFi’s personal loans come with no origination fees, no prepayment penalties and no late fees.

Depositing or withdrawing funds is convenient, with over 55,000 fee-free ATMs across the nation. You can deposit cash into your account at any retail location that offers Green Dot services; a service fee may apply.

Customers can get up to a $250 bonus when they set up direct deposit. Plus, you will get your paycheck up to two days early. 

Chime is a financial technology company that works with two FDIC-insured partner banks to provide banking services: The Bancorp Bank and Stride Bank.

The Chime checking account doesn’t require a minimum balance or charge monthly fees, overdraft fees or foreign transaction fees. The SpotMe feature allows you to avoid overdraft fees on up to $200. When you set up a direct deposit with Chime, you can get paid up to two days early.

Chime gives you access to over 60,000 fee-free ATMs. The Chime app will show you the closest in-network ATMs. You can also deposit up to $1,000 a day in cash without fees when you do so through a Walgreens or Duane Reade location.

The Chime savings account earns up to 2.00% APY, with no fees or account minimums. It offers two savings features when linked with the Chime checking; one is Round Ups, which rounds up your purchases to the nearest dollar and deposits the extra change in your savings account. You can use Save When I Get Paid to automatically deposit 10% of your direct deposit paycheck into your savings account.

Bank of America is an established name in the banking industry, with 3,900 retail financial centers across the U.S. It is our choice for best hybrid bank because it offers the latest online banking technology while still having all of the perks of a traditional brick-and-mortar bank.

Bank of America offers three checking account types, with account fees ranging from $4.95 to $25 per month. The bank waives these fees if you meet certain conditions, like maintaining a minimum daily balance of $1,500 for the Advantage Plus account. Minimum deposits to open a checking account range from $25 to $100.

Unlike the other banks on our list, Bank of America does not offer high APY for savings accounts. The standard APY is 0.01% (up to 0.04% if you are a Preferred Rewards member). Advantage Savings has a required opening deposit of $100 and an $8 monthly fee unless you maintain a minimum daily balance of at least $500 or meet certain other conditions.

With online banking through Bank of America, you have access to a digital wallet and 24/7 virtual customer service through its virtual financial assistant, called Erica. Erica, available only in the Bank of America app, can show you balances across all your accounts, notify you of credit score changes, notify you when a merchant posts a refund to your account, alert you of duplicate charges and connect you to live chat with a Bank of America specialist.

Online banking is when you complete all of your banking tasks through your phone, tablet or computer. Using online banking services, you can open a bank account, pay your bills, deposit and transfer funds, check your balance and apply for loans. It’s also easy to keep track of changes in your account. More online banks are also offering online investing and other financial services, like insurance.

Usually, an online bank can provide account holders with most of the same services as traditional banks. Customer service representatives are available over the phone, by email or via online chat. Online banks allow you to use a network of ATMs to withdraw cash without paying a fee. Note one major difference between online banks and traditional banks: Online-only banks do not have physical branch locations.

Unlike at traditional banks or credit unions where you need to conduct transactions in person, online banking makes it easy for account holders to manage their finances online through their computer or smartphone. Because online banks don’t have the overhead associated with physical locations, they can often charge fewer or even no fees and may offer higher interest rates on savings accounts.

To deposit a check, you can simply take a picture with your phone and upload it through your online bank’s secure portal. It’s easy to monitor your account through an app.

Many online banks have connections with ATM providers, so finding an in-network ATM is convenient, and there’s no fee for cash withdrawals.

Online banking pros and cons

Whether you are a member of a traditional bank that has some online features, or you have just joined an online-only bank, it’s great to know and take advantage of the benefits online banking offers.