Rates updated between July 10 and July 16
The best online banks pay higher than average yields on savings, charge minimal or no fees, and have low or no minimum balance requirements. Top online banks also offer conveniences on par with traditional banks, including online bill payment, powerful budgeting tools and mobile apps that allow customers to deposit checks, transfer money and much more.
The following accounts can be found at most banks and credit unions. They're federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They're a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
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EverBank offers CDs in terms ranging from three months to five years, as well as savings, money market and checking accounts, many of which pay competitive yields. Minimum deposit requirements are reasonable, too. EverBank doesn’t charge ATM fees and will reimburse you up to $15 each month for fees paid at other U.S. ATMs.
Quontic offers a variety of products with easy-to-meet opening deposit requirements and above-average APYs. Customers have access to a huge network of 90,000 ATMs as well as digital tools that include Apple Pay, Google Pay, Samsung Pay and Zelle. Another big plus: Deposit accounts don’t have monthly service fees or overdraft fees.
Ally Bank is regularly recognized as one of the best online banks in the country, and for good reason. Ally offers savers competitive rates and requires no minimum deposits. Its savings account allows customers to organize savings into “buckets,” such as for emergencies, vacations and housing. And it has a 24/7 customer service phone line.
In addition to its lending products, LendingClub offers deposit accounts that include a high-yield savings account that pays a competitive rate, charges no monthly service fee and comes with an ATM card. The bank also offers a rewards checking account that earns a tiered APY as well as CDs that pay competitive rates.
Many consumers think Discover provides only credit cards, but it’s also a top online bank offering savings, money market and checking accounts as well as CDs. Discover impresses by charging no fees for its deposit products and by offering savers competitive rates. You can also reach bank representatives over the phone 24/7.
Bank5 Connect is an online-only division of Massachusetts-based BankFive. It offers a high-interest checking account, as well as a savings account and CDs that earn rates well above national averages. The bank has low minimum opening requirements for many of its accounts and doesn’t charge monthly service fees. Residents of Massachusetts and Rhode Island aren’t eligible to open a Bank5 Connect account.
It may be best known for its credit cards, but American Express National Bank is also a bank that offers a savings account, checking account and CDs that earn high yields. There is a catch though — to open the checking account, you have to have an American Express credit card for at least 35 days. But once you do open an account, you’ll earn interest on your balance and rewards points for debit card purchases.
Bask Bank, the online subsidiary of Texas Capital Bank, offers a handful of deposit accounts available nationwide. Bask’s Interest Checking account offers a competitive yield as far as checking accounts go. For those looking to save, you have a couple of options to choose from. Bask offers a solid APYs on its CDs, but terms only go from three months to two years. It also has two savings accounts: one that earns an ultra-competitive yield and the other earns American Airline miles.
Alliant Credit Union is easy for anyone to join despite its status as a credit union. The credit union offers the full suite of deposit products, including accounts for children and teens. Alliant’s yields generally range from solid to competitive. Accounts generally come without monthly fees, though some accounts stipulate that you must elect e-statements in order to waive the fee.
Forbright Bank is a full-service bank with a mission centered on environmental sustainability, including clean energy financing. It prioritizes environmental responsibility in both its internal operations and lending practices, as the bank won’t finance fossil fuel extraction or infrastructure — with some caveats — according to Forbright’s 2023 Sustainability Report. In terms of deposit accounts, Forbright Bank’s online options are geared towards savings: a handful of CDs and one savings account.
Online banks have surged in popularity thanks to their low fees and high-yield savings options. But while they offer convenience and strong digital tools, they may fall short in areas where traditional banks still shine.
Higher interest rates: Online banks tend to offer better APYs on deposit accounts compared to brick-and-mortar institutions.
Low or no fees: With fewer overhead costs to cover, many online banks eliminate common fees like monthly maintenance, minimum balance and overdraft fees.
Eco-friendly operations: Many online banks operate with a smaller physical footprint, reducing their environmental impact.
Limited cash access: Depending on the account, depositing or withdrawing physical cash can be inconvenient and sometimes even impossible.
Fewer banking services: Services like cashier’s checks or notary services may be harder to obtain, if they are available at all.
No in-person support: Many online banks provide 24/7 support over chat or phone, but that sometimes may feel like a poor replacement for face-to-face customer service. Some online banks may even have limited customer support hours.
Product gaps: Some online banks don’t offer the full range of deposit products, or other financial services like loans.
“Think beyond just the higher interest rates when choosing between online and brick-and-mortar banks,” says Hanna Horvath, certified financial planner and managing editor at Bankrate. “While online banks often win on rates and fees, traditional banks offer real human relationships that can be valuable if you need more personalized advice. In some cases, you may benefit from using both — keeping your savings at online banks to earn better interest, while keeping a local, brick-and-mortar bank account for everyday needs and those times when face-to-face conversations matter.”
Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.
We score these institutions based on their product offerings (savings, checking accounts, CDs and money market accounts), APYs, fees, minimum deposit requirements, funds access, digital features and more.
The highest-rated online banks and credit unions made this list. Learn more about how we choose the best banking products and our methodology for reviewing banks.
