Best Online Banks

Online banking allows consumers to access their money online whenever and wherever they want. Online banks operate completely online — hybrid banks offer online and in-person services — and typically have low fees and high annual percentage yield (APY) on savings accounts.
While many features of online banking can make life easier, it can feel inconvenient to switch from a bank with physical locations to one that is all online. This guide will help you compare the best online banks and discover which features you need to look for to make banking easier.
When looking for the best online banks with a checking account, we considered fees, interest rates on checking and savings accounts, security, budgeting tools, account options, customer service, ATM availability, balance requirements and consumer reviews. When choosing an online bank, ask about security measures that ensure your money is safe. You should also find an online bank with an interface that feels straightforward and easy to use. Finally, any online bank you choose to do business with should be backed by the Federal Deposit Insurance Corporation (FDIC), just like any traditional bank.
Note that our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may impact the order in which companies appear.
- Our pick for best savings features: Ally
- Our pick for no fees: SoFi
- Our pick for online banking alternative: Chime
- Our pick for hybrid bank: Bank of America
- Our recommendations are based on what reviewers say.
- 4,213,201 reviews on ConsumerAffairs are verified.
- We require contact information to ensure our reviewers are real.
- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
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Rating | 3.7 | 3.3 | 3.6 | 4.0 |
# of reviews | 1,405 | 71 | 468 | 4,887 |
Our pick for | Best savings features | No fees | Online banking alternative | Hybrid bank |
Minimum account balance | $0 | $0 | $0 | Varies |
Savings APY | 3.30% | 3.75% | 2.00% | 0.01% |
Fees | $0 - $25 | $0 | $0 | $0 - $25 |
Read Reviews | Read Reviews | Read Reviews | Read Reviews |
Compare our top 4 choices for online banking
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.
- Minimum account balance: $0
- APY: 3.30%
- Fees: $0 - $25
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.
- What we like
- Minimal fees
- 0.25% APY on checking account
- 24/7 customer support
- What to consider
- No cash deposits
- No physical branches
- What reviewers say
- Many reviewers are happy with how much Ally Bank has to offer, from its wide range of products to its higher APYs. One customer from Washington said: “Great rates, competent and responsive customer service and easy access via ATM. They also have an investing side to help research and invest in stock.”
Most of the negative reviews on Ally Bank’s profile involve Ally’s auto loan financing. Many said it was hard to get in contact with the auto division’s customer service and that it was hard to get monthly payments to go through successfully with the app.
- Minimum account balance: $0
- APY: 3.75%
- Fees: $0
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.
- What we like
- Up to $250 bonus for direct deposit
- 2.5% APY on checking account
- Early paycheck
- What to consider
- Up to $4.95 service fee to deposit cash
- No physical branches
- What reviewers say
- Many reviewers chose SoFi for personal loans, saying the process was easy and quick. Additionally, they say customer service was friendly and prompt with answers to questions.
One New Jersey customer used SoFi for a $50,000 personal loan and received funds in less than three business days. “My FICO score was good but not excellent. I was even able to speak to a live human when I had a question. I did get a good rate compared to LendingClub or Prosper. The site itself is a pleasure to use.”
There are negative reviews from customers who had trouble getting loans or had issues with customer service.
- Minimum account balance: $0
- APY: 2.00%
- Fees: $0
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.
- What we like
- No account minimums or fees
- 60,000 in-network ATMs
- Fee-free cash deposits at Walgreens
- What to consider
- $2.50 out-of-network ATM fee
- Not a bank
- What reviewers say
- Customers chose to use Chime because of its no-fee overdraft feature and easy-to-use app. One Idaho customer said after using Chime for 14 months: “All of my deposits, transfers, withdrawals have gone absolutely smooth. The SpotMe feature is amazing if you ever get into a bind. Soon after I added on the Credit Builder card and immediately saw an increase in my credit score.”
Some customers have had issues with customer service and have gotten locked out of their accounts. Others have had problems with the security of their account and have reported being hacked and stolen from.
- Minimum account balance: Varies
- APY: 0.01%
- Fees: $0 - $25
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.
- What we like
- SafeBalance checking account for students with no monthly fee
- In-person services at branches
- What to consider
- Account fees
- Minimum deposits
- Low APY
- What reviewers say
- Many have praised Bank of America for having friendly in-person customer service, as well as an app that is easy to use. Several customers have used Bank of America for many years and feel that they can trust the company. An Oklahoma customer of 10 years said: “They have always notified me when there was any abnormal charges on any of my accounts. They have also immediately refunded any money that was taken out of my account.”
The top complaint about Bank of America is the long wait times. Customers said they had to endure long wait times on the phone while trying to connect to customer service. There were also a few reviewers who had long wait times at the physical branches.
Compare the Top 10 Online Bank Reviews | ||||||
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Partner DisclosuresPersonal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.97%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/. | Loan amounts from $1,000 to $50,000, Payback terms of 24 to 84 months. APR from 8.49% to 35.97%. Origination fee can be up to 9.99%. 1% to 2% rewards on checking account purchases. 4% APY on savings accounts with $1,000+. | ![]() | Get Started | ||
Offers online banking, robo-advisor trading, portfolio management and various loans. Stocks, ETFs, bonds, mutual funds, margin accounts and securities lending available. No commission or advisory fees. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Formerly known as GE CareCredit. Works with chains and local companies to provide retail credit cards. Free credit score monitoring. Use the monthly payment calculator to estimate costs. View partnering brands on the website. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Fintech online banking company with services including checking and savings accounts. Get a Visa debit card and secured credit card. No monthly fees and no minimum balance. Fee-free overdraft up to $200. FDIC-insured accounts. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers credit cards with features like travel rewards, cashback rewards and credit-building perks. No starting balance requirements for new checking accounts. Also offers home and auto loans. Limited branch locations. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers traditional and online banking options. Special $0-fee student checking accounts available. Operates over 3,900 locations and 16,000 ATMs nationwide. AI virtual assistant enabled on all accounts. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Chase online banking enables customers to deposit checks, check their balances and more, during any time of the day, on multiple devices. Customers can manage their accounts from their computers, smartphones or tablets. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Bank of America online banking offers its customers secure access to their checking and savings accounts. Other Bank of America services includes bill pay, customized alerts and the ability to transfer money between accounts. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers automated investing. Creates personalized investment portfolios. Low 0.25% annual fees. Socially responsible investment portfolio option. Tax-loss harvesting program. Exclusive investments and strategies available. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers complex wealth management, retirement planning, investment management and other financial services. Choose personalized planning from an advisor, robo-advising or a hybrid. No account fees or minimums to open an account. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Serves former and current members of the military as well as their families. Offers insurance services, investments and tax help for qualified customers in addition to banking, credit cards and mortgages. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Multinational bank based in Canada. More than 1,100 branches across the Eastern U.S. Offers checking and savings accounts, credit cards, personal loans and mortgages. Numerous sign-up bonuses and relationship banking perks. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Provides credit cards, banking services and loans. Get preapproved for credit cards on the website. Offers special credit cards for students and those who want travel benefits or cashback rewards. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Micro-investing platform. Offers managed portfolios and checking accounts with metal debit cards. Sustainable portfolios available. Personal and family membership tier options. Teaches investing basics. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
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| Checking and savings accounts. No minimum balance, account fees or overdraft charges. Get paycheck up to two days early. Up to $300 cash bonus with direct deposit. Cashback on local purchases. Earn 1.25% APY. | ![]() | ||||
Manage your money easier with Green Dot Prepaid Cards. ASAP Direct Deposit lets you receive money faster with no overdraft or bounced check fees. Use anywhere in the United States that accepts Visa. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers broker services, retirement planning, financial advising and specialized solutions. $0 commissions on online trades. No trade or account minimums. Upfront pricing listed online. Fractional shares cost as little as $5. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Online bank with checking and savings accounts. Also offers a credit-building secured credit card with no hard credit check. Works with Allpoint ATMs. Requires no minimum balance and has no monthly fees. FDIC-insured deposits. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Digital banking with no monthly fees. Doesn’t require a minimum balance. Get paid up to two days early with direct deposit. Overdraft protection up to $200. Offers a Visa debit card and secured credit card. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Financial services mobile app. Provides banking, savings, investing and budgeting services. No monthly fees. Offers cash-back rewards. Cash advance with no interest. Invest in individual companies or themes. | ![]() | Chat with a ConsumerAffairs decision guide Live agent |
What is online banking?
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.
- Online banking vs. traditional banking
- Online banks and traditional banks have a lot of similarities: you can deposit and withdraw money, open a variety of accounts, take out a loan and monitor your account for fraud and suspicious activity. They are both FDIC-insured and subject to the same federal rules and regulations.
Many traditional banks and credit unions also offer online banking services that allow you to deposit checks and pay your bills quickly and conveniently online. On the other hand, an online bank doesn’t have any physical branch locations; making a bank run is as simple as logging in to your account, which you can do 24/7.
Traditional banks and credit unions vary in how innovative their online services are. For example, a well-known traditional bank might have cutting-edge technology that makes online banking simple. Other smaller and local banks or credit unions might still use limited or dated technology, with the biggest online perk being bill pay.
For online-only banks, transfers go through almost immediately, although deposits might be more challenging to make. Another disadvantage to online banking is that your access to your account will always be dependent upon a steady internet or data connection.
How does online banking work?
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.
Pros
- Higher APYs
- Lower or no fees
- 24/7 access
- Extensive ATM network
Cons
- Some don’t allow cash deposits
- No in-person communication
- No or limited branches
- Some have limited services
FAQ
Are online banks safe to use?
Online banks are safe to use. In fact, online banking security is now more advanced than ever, and some experts consider online banks to be safer than brick-and-mortar banks. You complete all of your financial transactions through a secure web portal, and encryption scrambles your data, which makes it secure against hackers. Direct deposit eliminates the risk of someone stealing your check from the mail.
Additionally, online banking often comes with sophisticated fraud monitoring, two-factor authentication and login alerts. You should be sure to always use your data plan to access your online banking account. Accessing your online bank account while connected to public networks opens you up to hacking and unauthorized access.
Even if you’re diligent, scammers are out there. To be on the safe side, make sure you have a hard-to-guess password, and don’t write it down anywhere. Keep your device updated, and never give account information over the phone or through email or text messages.
How do I choose an online bank?
Choosing an online bank is simple enough if you think about which features are most important to you. Do you want a bank with no fees, or are you looking for a bank with products that offer the best return for your money? Compare online banks’ fees, APYs and services. Consider which products you will want to use today and two to three years from now. You might only want a high-yield savings account now, but having easier access to auto loans or mortgage refinancing might come in handy later on.
Do you need an ID to open an online bank account?
You will need to verify who you are before you are given a bank account. Each online bank is slightly different in how it verifies your identity. Some items a bank may request are a government-issued photo ID, a Social Security number and proof of address.
Compare the Top 10 Online Bank Reviews | ||||||
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Fintech company. Focuses on sustainability and offsetting carbon footprints. Offers two checking and savings tiers, plus credit. Plants trees with purchases. Uses a “pay what is fair” fee structure. Get cash back on purchases. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Mobile banking app solution. Get a spending account with no credit checks or minimum balance requirements. Membership fee is $1 per month. No overdraft fees and no ATM fees at 32,000 ATMs. Early access to direct deposit funds. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Kids’ debit card and investing app. Automates allowances and savings goals. Parents can set controls for shopping. Optional alerts for when child makes a purchase. Debit card can be used wherever Mastercard is accepted. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers mobile banking services to freelancers and small business owners. Track business expenses, analyze financial reports and manage taxes. Over 38,000 free ATMs across the network. Costs between $0 and $4.99 per month. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Offers banking services through The Bancorp Bank, so accounts are FDIC-insured. No monthly or overdraft fees. Access direct deposits up to two days early. Four tiers to choose from. Provides cash back on certain purchases. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Fintech company. Not a bank, but offers services through Choice Financial Group. Only available through mobile app. Offers teen banking with parental monitoring. No hidden fees. Earn points to get cash back. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Owned by Intuit. Fintech company that offers banking products. Savings, checking and credit builder loans available. No account fees or minimum deposits. Available in all 50 states. Accessible through Credit Karma app. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Fintech company partnering with Sunrise Banks to provide bank accounts and Mastercard debit cards. Supports Black and Latino-owned small businesses with cash-back programs. Reports rent payments to build credit. FDIC-insured. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Financial technology company offering checking and savings accounts. No monthly fees and no minimums. Provides overdraft protection at no cost. Debit card and secured credit in one card. Get access to 55,000 fee-free ATMs. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
App-based banking alternative. Lets you spend, transfer and invest money in multiple currencies. Transparent exchange rates. No in-network ATM withdrawal fees. Accounts are FDIC-insured. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | ||||
Read Author Review | An online-only solution to student debt. Experts work with you to create a personalized repayment plan to help eliminate your student debt. The company claims it can save students up to $450 a month on their student loans. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | |||
Read Author Review | This mobile banking app, backed by a big name in banking, targets users looking to track their spending and save up for big purchases. Features like a debit card and direct deposit capabilities keep it highly functional. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | |||
Read Author Review | An online-only bank with a highly rated mobile app, no overdraft fees and access to an extensive network of ATMs. This is a good option for those with less than optimal credit, as the bank does not check credit histories. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | |||
Read Author Review | The convenience of a mobile banking app meets the security and reliability of a large bank. The app features budgeting tools, online bill pay and the opportunity to send money to friends and family. | ![]() | Chat with a ConsumerAffairs decision guide Live agent | |||
Simple was an online bank owned by BBVA USA Bank. Simple was closed in May 2021 and BBVA USA Bank was acquired by PNC Bank in June 2021. Out Of Business | ![]() | Chat with a ConsumerAffairs decision guide Live agent |
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