Written by
Caitlyn Moorhead
Edited by
Lindsey Kloosterman
If you think an online bank may be well-suited to handle your personal finances, you’ll be glad to know you can will receive many of the same products and services as traditional brick-and-mortar banks or credit unions. This includes the added benefits of lower fees and higher interest rates due to the lower overhead costs of online banks. As online banking has become a mainstay for deposit account options and transferring money, more financial institutions are providing customers with these services.
To help you decide whether online banking is for you, GOBankingRates has analyzed dozens of online banks across a wide range of factors that include the following:
- Total assets
- Digital banking features
- Checking fees and monthly maintenance fees
- Checking and savings account products
- Money market account APY
- Savings account APY
- 12-month CD APY
- Minimum deposit requirements
- Bauer rating
- Products and services offered
- Average mobile app rating
- Available network of ATMs
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
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Compare the Best Online Banks
Bank
Best For
Products Offered
Savings APY
1-Year CD APY
ATM Network
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Ally Bank
Best for Overall Banking Experience
Checking, savings, money market, CDs, loans, credit cards, etc.
43,000+
American Express National Bank
Best for No Opening Deposit
Checking, savings, CDs, credit cards, loans, etc.
40,000+
Citizens Access
Best for Savings Products
Savings, CDs, loans, etc.
No ATM access (there’s no checking account)
Discover® Bank
Best for No Fees
Checking, savings, CDs, money market, credit cards, loans, etc.
60,000+
EverBank
Best for High Overall APYs
Checking, savings, CDs, money market, credit cards, loans, etc.
80,000+
LendingClub Bank
Best for High-Interest CDs
Checking, savings, CDs, loans, etc.
Up to
40,000+
Marcus by Goldman Sachs
Best for Combining Investing and Banking
Savings, CDs, investing accounts, credit cards, etc.
No ATM access (there’s no checking account)
SoFi
Best for Mobile App and Rewards
Checking, savings, investing accounts, loans, credit cards, insurance, etc.
No CDs offered
55,000+
Synchrony Bank
Best for Savings Products
Savings, CDs, money market, credit cards, loans, etc.
Nearly 70,000 (for money market)
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GOBankingRates Best Online Banks
Best for oVERALL bANKING eXPERIENCE
Ally Bank
Products Offered
Checking, savings, money market, CDs, loans, credit cards, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE ALLY BANK
Ally Bank was created to be an online-only alternative to brick-and-mortar banks, and that passion for innovation is apparent in customers’ experiences. Even beyond competitive annual percentage yields and guarantees never to be charged maintenance fees, we like the care that Ally Bank puts into making digital banking easy and accessible. In fact, every aspect of banking with Ally provides a positive experience for customers.
While a lot of banking is done online, a GOBankingRates survey showed Ally Bank outranking competitors in two key areas of customer service: service via live chat with a person as well as 24/7 customer service over the phone, with the wait time displayed on the website. A GOBankingRates survey also found that Ally Bank’s overall digital accessibility set it apart from competitors. Ally Bank ranked first in the quality of its mobile app, which received a high 4.7 rating on the App Store, although it scores worse for Android users with a 2.3 on Google Play.
Best for No Opening Deposit
American Express National Bank, Member FDIC
Products Offered
Checking, savings, CDs, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE AMERICAN EXPRESS NATIONAL BANK
American Express is not only a name you can trust with your credit but also with your online banking needs. And it might surprise you know that despite its high-end credit and charge cards catering to higher-income individuals, you don’t need to maintain a large balance to bank with American Express. In fact, you can open an account without making a deposit.
Its savings account annual percentage yield, or APY, is great, and while the CD APYs aren’t off the charts, they remain competitive and above the national average compared to other big financial institutions.
We think this online bank has you conveniently covered for financial products ranging from high-yield savings, CDs and checking accounts. With 24/7 customer service, no minimum deposits and no fees, you can see why GOBankingRates selected American Express National Bank as one of the Best Banks of 2024.
Best for Savings Products
Citizens Access
Products Offered
Savings, CDs, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE CITIZENS ACCESS
Ranked among the winners of GOBankingRates’ Best Online Banks of 2024, we like how Citizens Access focuses on saving. While you won’t find checking accounts here, you can open a high-yield savings account or high-yield CD. 12-month CD accounts earn excellent rates, and rates for longer terms are competitive enough to warrant tying up your money.
From opening a savings account where you can earn 21 times the national rate to obtaining a student loan or a mortgage with expert guidance, Citizens Access enables you to spend less and save more with the ease of doing it all online within a few minutes to skip long lines at branches. For added peace of mind, Citizens Access uses SSL encryption and 24/7 fraud monitoring to keep your money, and data, secure every second.
Best for No Fees
Discover® Bank, Member FDIC
Products Offered
Checking, savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE DISCOVER BANK
Discover Bank is a standout in the Best Online Banks category for its no-fee accounts that let you bank as you see fit, without having to worry about receiving direct deposits or maintaining a certain balance to avoid seeing your money dwindle away.
Discover is a legitimate bank, so it offers FDIC insurance, plus competitive annual percentage yields and an optimal mobile banking experience. The bank offers an impressive range of products, including a number of bank accounts that are winners in their respective categories — Discover’s checking accounts, CD and money market accounts have all been recognized this year.
Though you might know Discover best for its credit cards, its online bank should not be overlooked. With many products that are standouts in the industry, including fee-free checking and savings accounts, Discover can be your one-stop shop for all of your banking needs.
Best for High Overall APYs
EverBank
Products Offered
Checking, savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE EVERBANK
EverBank, formerly TIAA, offers high yields and a wide range of products, including a checking account that earns , putting EverBank in the top among competing accounts. Savings account and CD rates are also excellent, which means you’ll see your savings grow at a nice clip without the risk of brokerage investments.
Although EverBank is primarily an online bank, it provides in-person services to Florida residents, which can be an added perk if you live in the state.
We think EverBank is an especially strong choice for those looking to open a checking account, CD or money market account — EverBank is a winner in all three categories with its EverBank PerformanceSM Checking Account, EverBank PerformanceSM Money Market account and EverBank PerformanceSM CDs that come in a wide range of term lengths.
Best for High-Interest CDs
LendingClub Bank
Products Offered
Checking, savings, CDs, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE LENDINGCLUB BANK
Don’t let the name fool you. LendingClub Bank offers more than just loans — you can also select from a full scope of banking products and services. The standout is the 12-month CD, which locks you in to an impressive APY.
We also like that you have multiple ways to manage your money online with this financial institution, with minimal fees.
The online banking options are top tier and you’ll always have convenient access to your money through a nationwide ATM network. No matter if you are looking for a CD, checking account or even an auto loan, LendingClub Bank has you covered.
Best for Combining Investing and Banking
Marcus by Goldman Sachs, Member FDIC
Products Offered
Savings, CDs, investing accounts, credit cards, etc.
Savings APY
1-Year CD APY
WHY WE LIKE MARCUS BY GOLDMAN SACHS
Goldman Sachs has grown beyond its original investment banking roots to provide consumer banking products and services through Marcus by Goldman Sachs. This is a case of the sum being better than its parts, as Marcus boasts multiple CD options, credit cards and high-yield savings accounts with no fees in sight, plus automated investing services .
It’s an online bank so you won’t have the traditional branches or ATMs at your disposal, but the products and services it does offer are often a step above its leading competitors. Keep in mind that Marcus by Goldman Sachs does not have a checking account option, but we highly recommend its CDs and other savings products.
Best for High Savings APY
Salem Five Direct
Products Offered
Checking, savings, CDs, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE SALEM FIVE DIRECT
We picked Salem Five Direct as a great online bank for people looking to maximize their savings yields without having to keep a minimum balance or pay monthly fees. People with variable income or who just want the flexibility of moving money in and out of their accounts will benefit from its variety of products and services.
Salem Five Direct offers eOne Checking and eOne Savings accounts with no minimum balance, no fees and you can open a checking account with $0 and a savings account with just $10. Not only will you never pay ATM fees, but Salem Five Direct will reimburse you up to $15 per month on other banks’ ATM fees, a real win. However, take note, you are only eligible for the eOne Checking if you don’t have an existing checking with Salem Five Bank at the time of application.
Best for Mobile App and Rewards
SoFi
Products Offered
Checking, savings, investing accounts, loans, credit cards, insurance, etc.
Savings Account APY
*
1-Year CD APY
No CDs offered
WHY WE LIKE SOFI
We think SoFi is an excellent online bank for people who want to put all of their financial eggs into one bank. It offers a wide variety of financial products and services, including checking and savings, loans, credit cards, insurance and investing options.
But sometimes it’s the perks that count, and SoFi delivers them in spades, starting with a rewards program that provides members with financial advice, referral bonuses, loan discounts, travel offers and special benefits for members of the military — all at no cost.
The mobile app also goes above and beyond standard bank apps. Not only is it rated well on both the Apple Store and Google Play, customers can earn rewards for using it.
SoFi really makes it easy to consolidate your financial needs. It doesn’t leave people to figure all this out on their own, either, but offers free appointments with SoFi financial planners or you can use the robo-advisor. Ultimately, SoFi is a one-stop shop for banking that rewards its customers for doing so.
Best for Savings products
Synchrony Bank
Products Offered
Savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE SYNCHRONY BANK
What sets Synchrony apart is the sheer breadth of savings products at customers’ disposal. In addition to savings accounts and CDs, Synchrony offers a money market account that could replace your checking account, if you only write a few checks a month, and earn you a APY. You can open a Synchrony CD or money market account within an IRA to reap tax advantages as your money grows.
For people comfortable with online banking, Synchrony’s savings products are a great way to grow your money fast.
Though Synchrony doesn’t offer a lot of different financial products — for example, only one savings account and one money market account — the high yield on these makes up for the limit. And as an online bank, there are no physical branches, so you’ll need to be up to date on the mobile app or website, but there’s 24-hour customer service and live chat available.
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Research Methodology
To determine rankings, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services, and insurance); and (7) the average mobile app rating between the Google Play (Android) and Apple stores. Factors (1) and (2) weighed 0.5 times, and factors (3) and (7) weighed 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed. All products and offerings had to be available as of Nov. 8, 2023 to be considered All data is up to date as of Sept. 16, 2024, rates and fees are subject to change.
What To Know About Online Banking
Online banking allows a bank’s customers to conduct a wide range of financial transactions virtually. These transactions may be done using an online bank’s website on your computer, laptop or a mobile app.
How Online Banks Work
While the types of banking products and services will vary depending on the specific institution, online banking allows customers to conduct most types of transactions online or through a mobile app. Some common online banking transactions include opening accounts, paying bills, depositing checks, viewing statements and transferring funds.
Online Banking Fees
Typically, online banks do not charge the same high fees as traditional brick-and-mortar banks. You may open a bank account with an online bank that does not charge certain fees. You might not be required to pay monthly fees, minimum balance fees, person-to-person transfer fees, overdraft fees, foreign transaction fees or ATM fees, depending on the online-only bank.
Pros and Cons of Online Banking
Considering the pros and cons of online banking can be a helpful first step in deciding if it is right for you. But, as GOBankingRates found, with over 31% of 25- to 34-year-olds largely using online banking almost exclusively it might even be more imperative that you find a place to call your banking home.
Pros
- Convenience: Once you log in, you can manage your accounts, check your balance, pay bills, view statements and more. Online banking may be done anywhere in the world and right at your fingertips.
- Automation: Use automatic features like scheduling bill payments for on-time payments and automate savings to grow your money faster. This could be especially helpful if you’re one one of the 60% who keep $500 or less in checking or the 40% who keep $500 or less in savings, in a survey done by GOBankingRates.
- Bank securely: If you misplace or lose your debit card, log into your online bank account to deactivate the card to ensure no further purchases are made. Securely manage your money and monitor your account from fraud anywhere.
- ATM access: Depending on your online banking institution, you may be able to withdraw cash through ATMs accessible by your online bank.
- Additional features: Many online banks help provide a clear picture of your finances using spending, budgeting and other financial monitoring tools.
Cons
- ATM fees: If your online bank is part of a small ATM network, or does not have an ATM network, there is more likelihood you’ll incur fees when making withdrawals.
- Cashless: Unless your online bank is linked to ATMs that accept cash, there will be no way for you to make cash deposits.
- Long check processing: Online or mobile app check deposits can often take longer to process.
How To Choose an Online Bank
It can be hard to know which online-only bank is best for you and your needs. Here are some factors to consider, as well as some suggestions to guide you toward the best online bank for you.
- Check the fees: Banks will promote their free accounts but look to determine whether there are additional fees for services you typically will use, such as check writing or ATM withdrawals.
- Compare to other banking options: Online banking is increasingly becoming more the norm, however, if you are someone who needs to make a lot of cash deposits or prefers personal assistance, in-person banking may be a better fit for you.
- Read the fine print: Read the details as some rates or fees might be promotional.
- Check the APY: Always check the APY to make sure it applies to the products you’re interested in now or might be in the future.
- Check the website and app: Great rates and low fees are important, but if you can’t understand or don’t like an online bank’s user interface, you might not enjoy the experience over the long run, especially since there are no in-branch options.
- FDIC insurance: All banks on this list have FDIC insurance, and indeed, most banks do. Always check to make sure you understand your financial institution’s FDIC insurance policies.
Alternatives to Online Banks
If you have been on the fence about trying an online bank, here is how they compare to other banking options and services.
- In-person banking: If you travel a lot, have a range of financial needs or need to consistently deposit or withdraw cash, in-person banking may be preferred.
- Traditional banks: These standard brick-and-mortar banks often have more products available such as a Roth IRA or even stock options.
- Credit unions: These often offer higher rates and lower fees than traditional banks, but can be on par with online banks. However, credit unions tend to offer more personable and community-forward service.
How To Open an Online Bank Account
As the whole point of online banking is to not have to go in person to a physical branch, it should be no surprise that opening these bank accounts is all done online. Here are some steps to take so you can open your online bank account today:
- Decide which online bank to go with.
- Go to the bank’s website.
- Choose the type of account you want.
- Fill out an application.
- Have your personal information ready such as name, address, birthday and Social Security number.
- Have two forms of government-issued identification ready such as a driver’s license or passport.
- Once your application has been approved, you can fund the account with your first deposit.
Recap of Winners
- Ally Bank – Best for Overall Banking Experience
- American Express National Bank – Best for No Opening Deposit
- Citizens Access – Best for Savings Products
- Discover Bank – Best for No Fees
- EverBank – Best for High Overall APYs
- LendingClub Bank – Best for High-Interest CDs
- Marcus by Goldman Sachs – Best for Combining Investing and Banking
- Salem Five Direct – Best for High Savings APY
- SoFi – Best for Mobile App and Rewards
- Synchrony Bank – Best for Savings Products
Daria Uhlig contributed to the reporting for this article.
FAQ
Although the basic idea behind an online bank can be simple to understand, there are still many common questions surrounding this form of banking. Here are the answers to some of the most frequently asked questions regarding online banks.- What is the most trusted online bank?
- GOBankingRates has ranked the following among the most trusted and Best Online Banks for 2024:
- Ally Bank
- American Express National Bank
- Citizens Access
- Discover Bank
- EverBank
- LendingClub Bank
- Marcus by Goldman Sachs
- Salem Five Direct
- SoFi
- Synchrony Bank
- GOBankingRates has ranked the following among the most trusted and Best Online Banks for 2024:
- Are online banks safe?
- Yes, online banks are safe because most of them have FDIC insurance. This means your money stays safe if a bank fails or goes out of business. However, be cautious of hacking, phishing, identity theft and any other nefarious ways that scammers use to gain access to your info.
- Are online banks FDIC-insured?
- Yes, though it is always best to double-check before opening an account, any major online bank will be FDIC-insured which means your account will be covered for the full amount typically up to $250,000.
- Do online banks have ATMs?
- Though this does vary from bank to bank, typically yes online banks have ATMs as they offer many of the same features as brick-and-mortar banks. However, with online banks, it is more likely that it will be a small ATM network, so be aware of when you are out of network as you may incur fees.
- How do I deposit and withdraw money with my online bank account?
- Depositing cash into online banks is tricky as the bank must be linked to ATMs that allow cash deposits. If you are someone who works with a lot of cash, be sure to check that your online bank has this option otherwise depositing cash will be problematic. However, there are many ways to deposit or withdraw money from an online bank account such as a debit card, ATM transaction, account transfer or wire transfer.
See Best Banks Winners From All Categories
*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/8/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by American Express. American Express credit card products are not available through GOBankingRates.com.
Lending Club: Rates from 5.99% to 35.96%* APR. Best APR is available to borrowers with excellent credit.
