Best Online Banks of 2024

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In a day and age where convenience is highly valued, online banks have become increasingly popular for personal banking services. Not only do online banks provide instant access to your money, but they also do it while offering interest-earning potential well above the national average.

Best Online Banks

Money kept at an online bank is just as safe as your local bank branch. Most online bank deposits are FDIC insured up to legal limits. Many online banks provide full-service banking services too. Below is an overview of the best online banks right now and how to choose the right online bank for you.

Ally Bank

• Banking products available: Checking, savings, money market account and CDs
• App Store Rating: 4.7
• Google Play Rating: 4.0

The history of Ally Bank goes back a hundred years as GMAC, a division of GM. Since becoming Ally Bank in 2009, they’ve provided full-service online banking services to millions of customers.

Banking products include an interest-bearing checking account and competitive APYs through its online savings account, money market account and several CDs options. There are no monthly maintenance fees or minimum balance requirements. Checking account balances over $15,000 earn a higher interest rate.

Ally’s checking and money market accounts both come with ATM cards and check-writing privileges.

On top of its deposit accounts, Ally offers investment and retirement accounts, and home, auto and personal loans.

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Axos Bank

• Banking products available: Checking accounts, savings, money market account and CDs
• App Store Rating: 4.7
• Google Play Rating: 3.5

Axos Bank has been a leader in the online banking industry since it opened in 2000, with easy-to-open accounts that feature low opening minimum deposits and very few fees.

The online bank features five checking accounts, including options to earn interest and cashback. There are also accounts available for minors and seniors.

Axos customers don’t have access to an ATM network, but many of its accounts come with unlimited ATM fee reimbursements.

Customers also have access to home, auto and personal loans through Axos Bank.

Capital One

Capital One

• Banking products available: Checking, savings and CDs
• App Store Rating: 4.8
• Google Play Rating: 4.7

Capital One is a full-service online bank offering a variety of banking products and services. The online bank offers limited in-person services at select local bank branches and Capital One Cafes, but most of its business is online.

Bank accounts include savings and checking accounts, CDs and accounts for kids and teens. CD terms range from six months to five years. Other accounts include IRA Savings and IRA CDs. Capital One customers also have access to auto financing online.

Capital One’s mobile app is one of the highest-rated mobile banking apps in both the App Store and Google Play.

CIT Bank

• Banking products available: Checking, savings, money market account and CDs
• App Store Rating: 4.6
• Google Play Rating: 3.9
• ATM Access: None

CIT Bank is another top online bank to consider. It offers competitive rates on many of its accounts, especially its Savings Connect Account.

If you’re looking for access to a checkbook with your online bank account, you’re out of luck with CIT Bank. Neither its e-checking account nor money market account feature check-writing privileges.

Discover

• Banking products available: Checking, savings, money market account, CDs and retirement accounts
• Fees: No monthly maintenance fees
• App Store Rating: 4.8
• Google Play Rating: 4.5

Credit card giant Discover brings the same no-fee philosophy to its online banking with no fees and no minimum balance requirements on any of its accounts.

Customers have access to several bank accounts that earn competitive high-yield interest, including its savings and money market accounts. Discover’s CDs are also a great way to build savings with high APYs and terms from three months to 10 years.

Discover’s online checking account comes with a debit card and access to a checkbook. The account also earns cash back on select debit card purchases each month.

HSBC

• Banking products available: Checking, savings and CDs
• App Store Rating: 1.4
• Google Play Rating: 2.7

HSBC is one of the largest banking and financial services organizations in the world. It only makes sense for the banking giant to feature an online banking division.

For global travelers, HSBC offers its Premier Checking account. On top of not charging foreign transaction fees, the account comes with access to a global ATM network with no fees at US-based ATMs, but no checkbook.

Despite being a global banking leader, its mobile apps have some of the lowest ratings among banks on our list.

SoFi Checking and Savings

• Banking products available: Joint checking and savings account, brokerage account, mortgage loans, student loans and private loans
• App Store Rating: 4.8
• Google Play Rating: 4.1

SoFi Checking and Savings allows you to enjoy the benefits of both a checking and a savings account. What's more, if you open an account, you can get a sign-up bonus, even if you want to just take SoFi Checking and Savings for a "test drive."

Beyond the sign-up bonus, though, SoFi has a lot to offer. This account's APY is remarkably strong; it can go head to head with the best high-yield savings accounts.

UFB Direct

• Banking products available: Savings and money market accounts
• App Store Rating: 4.7
• Google Play Rating: 3.4

UFB Direct is a division of Axos Bank. Even though it doesn’t have a checking account option or CDs, it still offers plenty of value for customers who plan to keep larger balances.

Both the High Yield Savings account and Premium Money Market account earn competitive rates.

UFB Direct’s money market account also comes with limited check-writing privileges.

What Is an Online Bank?

Online banks are banks and credit unions that typically exist without traditional brick and mortar branches. While many local banks offer online services in addition to in-person service, they are not considered online banks. Online banks provide banking services via online and mobile access almost exclusively. Customer service for online banks is usually limited to phone, email and online chat support.

How to Choose an Online Bank

There are several factors to consider when comparing online banks to find the right one for you:

• Fees: Most online banks don’t charge monthly maintenance fees, but some do. Ensure you’re clear about monthly fees and any other fees that might pop up like overdraft fees.
• Rates: Opt for an account that earns a competitive rate to maximize your savings.
• Mobile App: Since most of your banking is through online access and a bank’s mobile app, survey what features its app offers before committing to a bank. Does it allow mobile check deposits? What about online bill pay or the ability to link to popular third-party payment sites like Venmo, Apple Pay and more?
• FDIC insurance: Most online banks are FDIC-insured, but it’s a good habit to check. You want to know your money is protected wherever you store it.
• Access: Look for details on how to make deposits and withdrawals from a bank’s accounts. Many online banks make cash deposits difficult or impossible to make. Make sure transaction options line up with your needs.

It’s human nature to skip over the fine print, but take time to read those details when picking an online bank. You could be looking over vital information that would affect your decision. Much of our lives are spent online, so why not boost your savings with higher rates from an online bank? Even if you don’t do all of your banking online, a high-yield online bank account is a great spot to keep an emergency fund or save for another project or savings goal.