Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
If you’re searching for a bank account with low fees and high savings rates, an online bank is one of the best places to consider.
We analyzed the products and services of 60 online banks, comparing the factors that matter most: available accounts, digital banking tools, service fees, ATM networks, interest rates and the overall customer experience. Find out which online banks came out on top and learn about what to look for in an online bank.
Annual percentage yields (APYs) and account details are accurate as of October 27, 2025.
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Show Summary
Best Online Banks of 2025
Best Online Bank for Checking Accounts
Bank5 Connect
Products
Checking, Savings, CDs
Fees
Nonsufficient funds fees; no monthly, overdraft or ATM fees
ATM Network
Thousands
Learn More
Read Our Review
Checking, Savings, CDs
Nonsufficient funds fees; no monthly, overdraft or ATM fees
Thousands
Editor's Take
We chose Bank5 Connect High-Interest Checking for its high-interest checking account, which offers 2.00% APY on balances of $100 or more and comes with no monthly fees and the ability to earn cash-back rewards with your debit card. You’ll also get up to $15 per month in ATM fee reimbursements.
Why We Like It
We like Bank5’s high-yield, free checking account and its cash-back rewards debit card. The Bank5 Jumbo Savings account also offers a competitive 4.05% APY, but you’ll need to have a balance of at least $25,000 to qualify.
What We Don’t Like
Unless you can qualify for Bank5’s jumbo savings account, its savings rates aren’t the best around. Bank5’s ATM network is also fairly limited, but it does help that the bank doesn’t charge any ATM fees—and even offers reimbursements for ATM fees charged by other banks.
Who It’s Best For
You should look into Bank5 if you’re primarily looking for a rewarding, low-fee checking account. It might also be worth considering if you’ve got $25,000 or more to stash in savings.
Pros & Cons
- High APY on checking account
- Cash-back rewards debit card
- No monthly maintenance fees
- No ATM fees
- ATM fee reimbursements
- Competitive rate on jumbo savings account
- 100% deposit insurance through Depositors Insurance Fund (DIF) protection
- Low APY on regular savings account
- Small ATM network
- Not available to residents of Massachusetts or Rhode Island
Details
Residents of Massachusetts and Rhode Island are not eligible to bank with Bank5 Connect. Accounts are insured by the FDIC, and all deposits above the FDIC limit of $250,000 are 100% insured by Depositors Insurance Fund (DIF) protection.
Best Online Bank for High APYs
Quontic Bank
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
ATM Network
90,000+ ATMs nationwide
Learn More
On Quontic Bank's Website
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM fees
90,000+ ATMs nationwide
Editor's Take
We chose Quontic Bank as one of the best online banks because it offers top APYs on all its accounts: 1.10% APY on its Quontic Bank High Interest Checking account, 3.75% APY on its Quontic Bank High Yield Savings account, 4.25% APY on its Quontic Bank Money Market Account and 3.00% to 3.85% APY on its Quontic Bank Certificate of Deposit.
Why We Like It
We like Quontic Bank’s high APYs and low fees and minimum deposit requirements. The bank also has a Quontic Bank Cash Rewards Checking account that pays up to 1.00% cash back on all qualifying debit card transactions.
What We Don’t Like
Quontic Bank makes it easy to earn the stated APY on most of its accounts but to earn the 1.10% with its High Interest Checking account, you’ll need to make at least 10 qualifying debit card transactions of at least $10 each per statement cycle.
Who It’s Best For
You should go for this online bank if you’re after high APYs and want to be able to take care of all your banking in one place.
Pros & Cons
- Offers cash-back checking, interest checking and bitcoin checking
- Mobile and online banking
- Access to more than 90,000 surcharge-free ATMs
- Designated as a CDFI
- Full-service bank
- May find higher rates at other banks and credit unions
- Customer service isn’t available 24/7
Details
Quontic Bank offers one savings account, two checking accounts, a money market account and five CDs with terms ranging from six months to five years.
Best Online Bank for Savings Tools
Ally Bank
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
ATM Network
75,000+ ATMs nationwide
Learn More
Read Our Review
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM fees
75,000+ ATMs nationwide
Editor's Take
In addition to its competitive rates, low minimum deposit requirements and lack of fees, we chose Ally Bank for its unique online savings tools. With Ally’s savings account, you can create “buckets” that allow you to set 10 different savings goals within a single account. The bank also has a “round ups” feature that transfers the spare change from your transactions into your savings account. And the bank’s “surprise savings” feature analyzes your Ally checking account for money that’s safe to save and transfers it to your savings account automatically.
Why We Like It
As a full-service online bank, Ally offers an array of high-APY, low-fee checking and savings products. It has an extensive ATM network and reimburses up to $10 per statement cycle for fees charged at out-of-network ATMs.
What We Don’t Like
Ally’s money market account and CD rates aren’t the highest available.
Who It’s Best For
Consider Ally Bank if you’re looking to boost your savings account balance—its combination of unique savings tools and a generous savings APY will help you get there.
Pros & Cons
- Offers helpful savings tools
- High customer service satisfaction
- 24/7 customer service availability
- Low to no fees and minimums
- Out-of-network ATM fee reimbursement up to $10 per month
- Higher rates are available from other banks and credit unions
- No way to directly deposit cash
Details
Ally Bank offers a savings account, interest-checking account, money market account and CD terms from three months to five years. It also offers a raise-your-rate CD with terms of two and four years and a no-penalty CD with a term of 11 months.
Best Online Bank for No Fees
Discover® Bank
Products
Savings, Checking, CDs
Fees
No monthly, overdraft or in-network ATM fees
ATM Network
60,000+ ATMs nationwide
Learn More
On Discover's Website
Savings, Checking, CDs
No monthly, overdraft or in-network ATM fees
60,000+ ATMs nationwide
Editor's Take
Discover® Bank makes our list of best online banks for avoiding fees thanks to its zero-fees policy: no monthly maintenance fees, no insufficient funds fees and no in-network ATM fees. There’s also no fee for stop-payment orders, returned items or excessive withdrawals.
Why We Like It
Discover® Bank offers a full suite of banking products and services, including the Discover® Bank Online Savings Account earning 3.40% APY and the Discover® Cashback Debit Checking account that earns 1% cash back on up to $3,000 in debit card purchases each month. See website for details. And customers have access to an extensive ATM network.
What We Don’t Like
This online bank’s CD rates could be improved, although it does offer one of the best rates on 10-year CDs.
Who It’s Best For
Anyone looking to minimize fees while still earning competitive rates and rewards should look into Discover.
Pros & Cons
- Charges very few fees
- Competitive APYs and cash back earnings
- Highly rated mobile app
- Extensive ATM network
- 24/7 customer service
- Higher rates are available from other banks and credit unions
- Doesn’t pay interest on checking account
Details
Discover® Bank offers a cash back checking account, a high-yield savings account and CDs with terms from three months to 10 years. The mobile app is highly rated on the App Store and Google Play.
Best Online Bank for High-Yield Savings
Synchrony Bank
Products
High-yield savings accounts, money market accounts, CDs, IRAs
Fees
No monthly maintenance fees or ATM fees; limited ATM reimbursements apply
ATM Network
60,000+
Learn More
Read Our Review
High-yield savings accounts, money market accounts, CDs, IRAs
No monthly maintenance fees or ATM fees; limited ATM reimbursements apply
60,000+
Editor's Take
We chose Synchrony Bank because it pays 3.80% APY, charges no monthly fees and has no minimum deposit requirement. Unlike most savings accounts, Synchrony Bank High Yield Savings Account comes with an ATM card for easy access to your funds.
Why We Like It
We like that all of Synchrony’s savings products—its high-yield savings account, money market account and CDs—charge no monthly fees and have no minimum deposit requirements. Its savings account APY is impressive, as are its rates on most CD terms.
What We Don’t Like
This online bank’s money market account pays less than what you could find elsewhere, and it doesn’t offer a checking account.
Who It’s Best For
Open an account at Synchrony Bank if you’re looking to open a high-yield savings account or CD, especially if you want to avoid monthly fees and minimum deposit requirements.
Pros & Cons
- Competitive interest rates
- No monthly fees
- No minimum deposit requirements for savings and money market accounts
- ATM card available for high-yield savings account
- No checking accounts
- Limited ATM network
- No physical locations
Details
Synchrony banking products do not have monthly service or minimum balance fees. Synchrony doesn’t charge a fee to use ATMs, however, there may be a fee charged by the ATM owner. Synchrony refunds up to $5 in ATM-owner fees each month, but if you reach Diamond status in Synchrony’s Perks Rewards program, you’ll get unlimited ATM fee refunds at domestic ATMs. Synchrony does not reimburse fees at international ATMs.
Best Online Bank for Full-Service Banking
NBKC Bank
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
ATM Network
37,000+ ATMs nationwide
Learn More
Read Our Review
Savings, Checking, MMAs, CDs
No monthly, overdraft or ATM fees
37,000+ ATMs nationwide
Editor's Take
We included NBKC Bank because it’s a full-service bank that offers interest-bearing accounts and keeps fees to an absolute minimum. There are no monthly maintenance fees, overdraft fees, minimum balance fees or foreign transaction fees. Plus, NBKC Bank offers home loans, personal loans and more, so you can take care of all your financial needs in one place.
Why We Like It
NBKC Bank Everything Account is an interest-bearing checking and savings account combined into one. You can spend, save and pay bills from a single account. It comes with an extensive ATM network and reimburses up to $12 per month for out-of-network ATM fees. Its CD rates are also fairly competitive.
What We Don’t Like
While the Everything Account’s APY is impressive for a checking account, you could earn a lot more on your savings with one of the best high-yield savings accounts. NBKC Bank‘s money market account doesn’t offer the highest rate either.
Who It’s Best For
Go for NBKC Bank if you want to take care of all of your online banking, and potentially your loans, in one place. It’s also worth checking out if you like the idea of a combined checking and savings account.
Pros & Cons
- Offers a combined checking and savings account
- Low to no fees
- Out-of-network ATM fee reimbursement up to $12 per month
- High customer service satisfaction and live chat tool
- Full-service bank
- Higher rates are available from other banks and credit unions
- Not designed for those who want separate checking and savings accounts
Details
NBKC Bank offers a combined checking and savings account, a money market account and CD terms from three months to five years. It also has an add-on CD that has a term of one year.
Best Online Bank for Mobile Check Deposit
SoFi®
Products
Checking, savings
Fees
No monthly maintenance fees or overdraft fees
ATM Network
55,000+
Learn More
On SoFi's Website
Member FDIC
Member FDIC
Checking, savings
No monthly maintenance fees or overdraft fees
55,000+
Editor's Take
We ranked SoFi® highly because its combined checking and savings account comes with a mobile check deposit feature that allows you to snap a photo of your check and access your funds as early as one day later. This interest-bearing account also comes with early direct deposit.
Why We Like It
You’ll earn 0.50% APY on checking and up to 3.80%¹ APY on savings if you set up eligible direct deposit, by depositing $5,000 or more every 30 days or by signing up for SoFi+. Customers who don’t meet this criteria earn 1.00% APY on savings balances with the SoFi Checking and Savings Account. You can even earn cash back when you use your SoFi® debit card at qualifying businesses.
What We Don’t Like
This bank doesn’t offer standalone checking or savings accounts, nor does it offer money market or CD accounts.
Who It’s Best For
Opt for SoFi® if you’re looking for a checking and savings account that earns competitive yields and comes with extra online banking features like mobile check deposit and savings roundups.
Pros & Cons
- No minimum balance to open
- No account fees for overdrafts or account maintenance
- Receive direct deposits up to two days early
- Impressive APY
- Extensive ATM network and cash back at select retailers
- No branch locations
- Only banking product is a combined checking and savings account
Details
SoFi doesn’t offer separate checking or savings accounts at this time—only the combined SoFi Checking and Savings Account account. Up to 3.80%¹ APY on checking and savings account balances can be yours when you set up eligible direct deposit or by depositing $5,000 or more every 30 days, +0.70% Boost on Savings APY to up to 4.50% for up to 6 months on new accounts with eligible Direct Deposit. Terms apply. (New savings accounts only)*. Members without eligible direct deposit earn 1.00% APY on savings and Vaults balances and 0.50% APY on checking balances.
When you open an account, you become a SoFi member, which comes with access to additional benefits like rate reductions on loan products, financial planning services, estate planning discounts, access to exclusive SoFi events and more.
Disclosures:
¹SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
*Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Best Online Bank for CDs
EverBank
Products
Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
ATM Network
80,000+ ATMs nationwide
Learn More
Read Our Review
Checking, MMAs, CDs
No monthly, overdraft or ATM fees
80,000+ ATMs nationwide
Editor's Take
We awarded EverBank (formerly TIAA Bank) a top spot for its EverBank Performance CD, which pay competitive rates ranging from 3.40% to 4.00% APY and have a modest opening deposit requirement of $1,000. EverBank CDs come in terms ranging from three months to five years.
Why We Like It
In addition to its competitive CD rates, EverBank charges no monthly fees on its bank accounts, no overdraft fee from a linked EverBank account and no ATM fees. EverBank‘s checking account also automatically reimburses up to $15 each month for third-party ATM charges. Keep a minimum balance of $5,000 or more in your checking account and you’ll get unlimited ATM reimbursements.
What We Don’t Like
The online bank’s money market account doesn’t pay the highest rate, and EverBank doesn’t offer any CD accounts with terms longer than five years.
Who It’s Best For
EverBank is best for strategic savers who want to leverage a CD ladder to their advantage. The bank offers eight term lengths under three years and lets you build a ladder that sees a CD mature every three months. However, EverBank doesn’t currently offer any CD terms longer than five years.
Pros & Cons
- Offers Yield Pledge promise
- No monthly, overdraft or ATM fees
- Unlimited out-of-network ATM fee reimbursement with a $5,000 minimum balance
- Highly rated mobile app
- Customer service is available seven days a week
- You can find higher rates at other banks and credit unions, despite Yield Pledge
- No CDs with terms greater than 60 months
Details
EverBank offers a checking account (Yield Pledge Checking), a savings account, a money market account (Yield Pledge Money Market), basic CDs, a bump-up CD and what it calls an IntraFi CD, a CD that offers expanded FDIC insurance on deposits.
Best Online Bank for Customer Service
Capital One 360
Products
Savings, Checking, CDs
Fees
No monthly, overdraft or ATM fees
ATM Network
70,000+ ATMs nationwide
Learn More
On Capital One's Website
Savings, Checking, CDs
No monthly, overdraft or ATM fees
70,000+ ATMs nationwide
Editor's Take
We chose Capital One 360 as a top pick for customer service because it offers 24/7 customer service and has been ranked highest in overall customer satisfaction by J.D. Power for four years in a row. This bank is also a unique hybrid of a no-monthly-fee online bank and a brick-and-mortar bank. Its Capital One Cafés offer a place to get personal, face-to-face support from bank representatives and money coaches in a coffee-shop atmosphere. And Eno, the bank’s virtual assistant, is available in the mobile app or by text.
Why We Like It
None of the bank’s products require a minimum deposit or minimum balance, and Capital One 360 offers high yields on savings and CD accounts.
What We Don’t Like
This online bank’s Capital One Cafés are a unique perk, but it only has locations in select cities.
Who It’s Best For
Consider Capital One 360 if you want the low fees and high yields offered by online banks but don’t want to sacrifice good customer service to get them.
Pros & Cons
- Capital One Cafés, with in-person banking support
- Branch access
- Customer service available seven days a week
- Large ATM network
- No minimum deposit or balance requirements
- No money market account
- Capital One Cafés and branches only in select states
Details
Capital One 360 offers a savings account (Capital One 360 Performance Savings Account™), checking account (Capital One 360 Checking Account) and CDs (Capital One Certificates of Deposit). It also offers a Capital One Kids Savings Account and Capital One MONEY Teen Checking.
Best Online Bank for Small Business
First Internet Bank
Products
Checking, savings, money market accounts, CDs
Fees
Monthly maintenance fees on some accounts
ATM Network
N/A, $10 in ATM surcharge rebates per month
Learn More
On First Internet Bank's Website
Member FDIC
Member FDIC
Checking, savings, money market accounts, CDs
Monthly maintenance fees on some accounts
N/A, $10 in ATM surcharge rebates per month
Editor's Take
We picked First Internet Bank as the best online bank for small businesses because it offers an array of low-fee and interest-bearing business checking, savings, CD and money market accounts. Its Do More Business Checking account has no monthly maintenance fees or minimum deposit requirements, earns interest and offers unlimited transactions. The bank’s First Internet Bank Certificate of Deposit (Personal) also pay a generous 3.61% to 4.23% APY.
Why We Like It
We love the rates on this bank’s business MMA and CDs. We also like that it offers two free checking accounts—one designed for new or growing businesses and one for medium- to large-sized businesses. Its personal accounts also come with decent rates and low fees.
What We Don’t Like
First Internet Bank‘s savings rates on both its business and personal accounts are fairly low.
Who It’s Best For
Look into First Internet Bank if you want to open a business checking account, or a business or personal CD account.
Pros & Cons
- Basic checking has no monthly fees or transaction limits
- All business accounts earn interest
- Competitive interest rates on most accounts
- ATM reimbursements
- Higher balances required for best interest rates
- Savings and MMA ATM cards only available to sole proprietors
- Interest compounds monthly
Details
First Internet Bank has two business checking accounts, a regular business savings account, a business money market account and business CDs with terms ranging from three months to five years.
Do More Business Checking has no monthly fee, but you need to maintain a minimum $10,000 balance to earn interest. Money Market Savings has a $5 monthly fee, waived with a $4,000 minimum daily balance. It earns 3.09% APY with a daily balance of $5 million or below and 3.90% APY with a daily balance above $5 million. Regular Savings has a $2 monthly fee, waived with a $1,000 minimum daily balance. It earns 0.91% on all balances. You’ll need to call the bank for information about Commercial Checking.
Summary of Best Online Banks 2025
Best For
Best Online Bank for Checking Accounts
Products
Checking, Savings, CDs
Fees
Nonsufficient funds fees; no monthly, overdraft or ATM fees
Atm Network
Thousands
Best For
Best Online Bank for High APYs
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
90,000+ ATMs nationwide
Best For
Best Online Bank for Savings Tools
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
75,000+ ATMs nationwide
Best For
Best Online Bank for No Fees
Products
Savings, Checking, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
60,000+ ATMs nationwide
Best For
Best Online Bank for High-Yield Savings
Products
High-yield savings accounts, money market accounts, CDs, IRAs
Fees
No monthly maintenance fees or ATM fees; limited ATM reimbursements apply
Atm Network
60,000+
Best For
Best Online Bank for Full-Service Banking
Products
Savings, Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
37,000+ ATMs nationwide
Best For
Best Online Bank for Mobile Check Deposit
Products
Checking, savings
Fees
No monthly maintenance fees or overdraft fees
Atm Network
55,000+
Best For
Best Online Bank for CDs
Products
Checking, MMAs, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
80,000+ ATMs nationwide
Best For
Best Online Bank for Customer Service
Products
Savings, Checking, CDs
Fees
No monthly, overdraft or ATM fees
Atm Network
70,000+ ATMs nationwide
Best For
Best Online Bank for Small Business
Products
Checking, savings, money market accounts, CDs
Fees
Monthly maintenance fees on some accounts
Atm Network
N/A, $10 in ATM surcharge rebates per month
How To Choose an Online Bank
Here are some factors to consider when choosing an online bank:
- Fees. Pesky fees can quickly eat into your overall bank balance. Look for an online bank that keeps fees of all types to a minimum. That includes monthly fees, overdraft fees and ATM fees. It’s even better if the bank reimburses for third-party ATM charges. Analyze your banking behavior to figure out which fees you need to worry about most. You can often avoid fees with the right bank.
- APYs. If you’re looking to get the most for your money, find a bank that pays a competitive APY on its financial products. Online banks tend to pay higher rates, so do some comparison shopping to get the best rates you can.
- Minimums. Lower minimum deposit and balance requirements generally make it easier to maintain an account. Find an online bank with minimum requirements that meet your financial comfort level.
- Products. The online bank you choose depends heavily on the products you need. Some online banks are full-service financial institutions, offering checking, savings, money market accounts, CDs and other products. Others limit their offerings.
- ATM network. If having access to cash is important, look for an online bank that offers an extensive surcharge-free ATM network. Check the bank’s site to make sure there are ATMs close to your location or in the areas where you travel most.
- Customer experience. Online banks typically don’t offer branch access, and if they do, it’s often limited. That’s why it’s essential to keep customer support in mind when shopping for an online bank. Look for a bank that offers easily accessible customer service representatives or online chat alternatives.
- Digital banking experience. Convenience is crucial in the world of digital banking. With an online bank, your primary interactions occur via the bank’s website and mobile app. The best online banks provide a simple online interface and highly rated mobile apps for banking on the go. Check out reviews of the mobile app on the App Store and Google Play.
- Safety. Look for a bank insured by the Federal Deposit Insurance Corporation (FDIC), which provides up to $250,000 in insurance per depositor, per bank, for each account ownership category, in the event of a bank failure. At credit unions, make sure the account is insured by the National Credit Union Administration (NCUA).
Pro Tip
If your emergency savings are currently sitting in a low-yield account at a large brick-and-mortar bank, consider moving them to a high-yield savings account at an online bank. Traditional banks with a large physical presence usually pay below-average interest on savings, while many online banks offer rates that are 10 times higher than the average.
Pros and Cons of Online Banks
| PROS OF ONLINE BANKS | CONS OF ONLINE BANKS |
|---|---|
| Lower Fees (monthly maintenance, overdrafts, ATM, P2P transfers, incoming wire transfers, foreign transactions) | No branch access, so banking and customer service are handled online or on the phone |
| Higher rates on checking, savings, CDs and money market accounts | ATM networks may be limited compared to traditional brick-and-mortar banks |
| Extra features like automated savings tools, goal trackers, budgeting tools, integration with mobile wallets, etc. | May not accept cash deposits |
| Easy application processes to open accounts | Limited range of services (fewer account options or lack of lending and investment products) |
Online Banks vs. Traditional Banks
| ONLINE BANKS | TRADITIONAL BANKS |
|---|---|
| Don’t usually have branch locations
| Operate brick-and-mortar locations
|
| Tend to offer more generous rates and lower fees
| Typically offer less competitive rates and charge more fees
|
| Usually have a limited range of products and services
| Tend to offer more financial products and services |
| May offer 24/7 virtual customer service | – |
Related to: Online Banks Vs. Traditional Banks: Which Are Better?
Who Are Online Banks Best For?
“Online banks are best for customers who want to minimize account fees and maximize the interest they earn on their balances,” says Maisha Shahid, deputy editor at Forbes Advisor.
“As long as you feel comfortable managing your account through a bank’s website or mobile app, you have a lot to gain from banking with an online institution. Just make sure to do your research first to find the right balance of account services, customer support options and ATM accessibility.”
How To Open an Online Bank Account
You can open a bank account online via your chosen bank or credit union’s website or mobile app. From there, you’ll generally follow the same steps that you would to open a bank account at a branch. Here’s a typical step-by-step process for opening a bank account online:
- Visit the bank or credit union’s website, or launch its mobile app.
- Find the type of bank account you want to open and fill out an application for a new account.
- Verify your identity and provide other required information, which may include your address, phone number and email.
- Make a minimum deposit, if required.
- Wait for your deposit to clear, which may take a few days. Then, start using your new account.
Methodology
To create this list, Forbes Advisor analyzed the products and services of 60 online banks, including a mix of large and small online banks and neobanks. We ranked each bank on 12 data points within the categories of product offerings, APY, fees, ATM network, customer experience, digital experience and minimum requirements.
Our aim was to include banks that are not only available to customers nationwide, but also to prioritize institutions that have low minimum deposit requirements and a solid suite of products.
Here’s the weighting assigned to each category:
- Product offerings: 20%
- APY: 20%
- Fees: 20%
- ATM network: 10%
- Customer experience: 10%
- Digital experience: 10%
- Minimums: 10%
Online banks offering the highest APYs and lowest fees across their products rose to the top of the list, as did those with a low minimum deposit and balance requirements and a broad ATM network. Banks with high customer satisfaction and an intuitive digital banking experience also earned higher scores. To appear on this list, the bank must be an online bank with national availability.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Frequently Asked Questions (FAQs)
Are online banks safe?
Online banks are as safe as brick-and-mortar banks, as long as they’re members of the Federal Deposit Insurance Corp. Assuming the online bank you’re considering is covered by the FDIC, your funds will be as safe as they would be at a traditional bank.
Are online banks FDIC-insured?
The FDIC insures many online banks. Other online banks are affiliated with brick-and-mortar banks that are FDIC insured. And some offer additional insurance protections through organizations like the Massachusetts Depositors Insurance Fund (DIF).
FDIC-insured accounts are covered up to $250,000 per depositor, for each ownership category, in the event of a bank failure. Before opening a bank account, confirm that the financial institution is FDIC insured. Look for the National Credit Union Administration (NCUA) to insure nationally chartered, and many state-chartered, credit unions for similar amounts.
Do online banks have ATMs?
Online banks usually don’t operate their own branded ATMs, but in many cases, they offer fee-free ATM access through partner banks. ATM networks vary in size depending on which bank you use, with some of the best online banks offering free access to more than 37,000 ATMs nationwide. If you withdraw cash often, check whether your account comes with ATM fee reimbursements, as out-of-network ATM surcharges can quickly add up.
Why can't I open a bank account online?
You might not be able to open a bank account online if you don’t have certain required documents, such as a government-issued photo ID, U.S. residential address, Social Security number or taxpayer identification number. Additionally, your application might be denied if you’ve had too many negative marks, such as overdrafts or bounced checks, reported to ChexSystems.
How do I deposit cash with an online bank?
If your online bank has an ATM network that allows cash deposits, you can typically deposit cash at an in-network ATM the same way you would with a traditional bank. Some online banks without ATM networks offer cash deposits at certain retailers, though this may result in a fee of up to $5 or more. Many online banks don’t support cash deposits at all but may offer a mobile check deposit feature.
