The emergence of online banks has changed the way we manage our money. In the past, we’d visit a bank branch to open an account or make a withdrawal. But now, online banks offer the ability to perform almost every banking task on a mobile device or a home computer.

We compared the top FDIC-insured online banks, examining key metrics including fees, customer experience, product choice, account features, and commitment to environmental and social responsibility to narrow down the 10 best. (Click here for the full methodology.)

10 best online banks

Discover Bank’s products

• Credit cards: Discover offers a variety of rewards and cash-back credit cards, student cards, and even secured credit cards.

• Rewards checking account: Discover’s no-fee checking account — the Discover Cashback Debit account — offers 1% cash back on up to $3,000 in debit card purchases each month.

• Savings account: Discover offers one high-yield online savings account option with zero monthly fees.

• Certificates of deposit: For savers who want a different type of savings option, Discover offers CDs with terms ranging from three months to 10 years.

• Money market account: The Discover Money Market account offers savers an alternative savings account option with greater access to their funds via ATMs, debit cards, and checks.

• Retirement and lending products: Discover offers individual retirement accounts (IRAs) and home, student, and personal loans.

Read our full review of Discover Bank

Ally Bank’s products

• Checking account: Ally’s Spending Account is a fee-free checking account option that lets users organize their cash into spending buckets, deposit checks remotely, and even get access to their paycheck up to two days earlier than their payday.

• Credit cards: Ally offers a platinum Mastercard option, as well as two different cash-back cards that reward cardholders with up to 3% cash back for spending at gas stations, grocery stores, drugstores, and other retailers.

• Lending products: Customers can use Ally’s lending products to get a mortgage, finance their vehicle, or get a personal loan to pay for expenses including medical treatments, home repairs, and renovations.

Read our full Ally Bank review

Quontic Bank’s products

• Checking accounts: Quontic offers a high-interest checking account for consumers who want to earn interest on their balance, as well as a rewards checking account that allows customers to earn cash back on debit card purchases. A standout product is Quontic’s innovative Pay Ring. If you’re the kind of customer who sometimes forgets your wallet at home, this is a wearable ring that ensures that you always have access to your funds and can pay for a purchase by tapping your ring at the checkout counter.

• Savings account: Quontic’s high-yield savings account compounds interest daily and requires $100 to get started.

• Certificates of deposit: Quontic offers several certificates of deposit, with terms that range from six months to 60 months with a minimum opening deposit of $500.

• Money market account: With a $100 minimum deposit requirement, savers can open their own Quontic Money Market Account online in just a few minutes. This account gives them access to their savings via check or debit card while earning interest on their balance.

• Mortgages: Quontic offers both traditional and non-traditional mortgage loans and refinancing for all kinds of borrowers, even those whom other lenders have rejected.

Read our full Quontic Bank review

Capital One’s products

• Credit cards: Capital One offers credit-building cards, cash-back cards, and rewards cards that allow customers to earn points for purchases on dining, travel, and entertainment. It also offers student cards, business cards, and low-intro APR credit cards.

• Checking accounts: In addition to its interest-earning 360 Checking account, Capital One allows younger customers to start managing their finances and earn interest through its teen checking account.

• Savings accounts: Capital One has two savings accounts — a high-yield savings account and a fee-free kids savings account.

• Certificates of deposit: Capital One’s CDs range from six months to five years with no minimum balance to open an account.

• Auto loans: Capital One offers car loans for new and used cars.

Read our full Capital One review

American Express’s products

• Credit cards: American Express’s credit card offerings include personal and business credit cards, prepaid cards, gift cards, and corporate credit cards.

• Savings accounts: American Express offers a high-yield savings account with no minimum balance or monthly fees.

• Certificates of deposit: American Express’s fee-free certificates of deposit range from 11 months to five years and do not require a minimum balance.

• Checking account: For customers who want to earn interest on their checking account balance, Amex offers a rewards checking account for current cardholders that has no required opening deposit, no monthly fees, and offers membership rewards points on eligible debit card purchases.

• Personal loans: American Express cardmembers can apply to finance personal expenses with a personal loan ranging from $3,500 to $40,000.

• Business products and services: Business customers can take advantage of American Express’s business credit cards, payment solutions, corporate cards, business lines of credit, and more.

Read our full American Express National Bank review

SoFi’s products

• Checking and savings account: SoFi offers an interest-bearing combination checking and savings account with no account fees or balance minimums. It is also currently offering a checking account bonus to new customers.

• Credit cards: SoFi currently offers just one credit card, which earns users unlimited 2% cash-back rewards for every dollar spent on purchases.

• SoFi invest: SoFi customers can trade stocks and ETFs right in their SoFi mobile app with an investment account.

• Private student loans and student loan refinancing: SoFi offers student loan refinancing options with no origination fees, pre-payment penalties, or late fees. It also offers private student loans with no fees and multiple repayment terms.

• Personal loans: SoFi’s personal loans range from $5,000 up to $100,000 to help you cover the cost of personal expenses such as your wedding, travel, and home improvements. Once you’re approved, your money could be available as soon as the same day.

• Mortgages: SoFi’s home mortgage loans offer fixed terms ranging from 10 years to 30 years, with as little as 3% down.

• Insurance: For extra protection, SoFi offers auto, home, life, renters, and cyber insurance.

Read our full SoFi review

Axos Bank’s products

• Checking accounts: Axos offers three different checking account options with zero monthly maintenance fees — the Essential Checking, Rewards Checking, and Cashback Checking.

• Savings accounts: Axos offers a high-yield savings account with no monthly maintenance fees or minimum balance requirements. For customers who want to start building their savings early, Axos offers a savings account for teens ages 13-17.

• Certificates of deposit: Axos’s CDs range from three months to five years, with a $1,000 minimum amount to open an account.

• Mortgages: Homebuyers can take advantage of a host of mortgage options offered by Axos with $0 lender fees and up to 3% annualized cash back.

• Personal loans: For customers hoping to finance a large expense, Axos offers personal loans of up to $50,000 with terms ranging from three to six years.

• Auto loans: Axos’s auto loans can be used to cover purchases and refinancing with no payment for up to 90 days. Terms can be as long as 96 months.

• Investment accounts: Axos’s investment products include managed portfolios and self-directed trading accounts that users can link to their mobile app to monitor in one dashboard.

Read our full Axos Bank review

Varo Bank’s products

• Checking account: Varo’s fee-free checking account offers perks like cash back and early access to your paycheck with no hidden fees.

• Savings account: Savers can take advantage of Varo’s 5% annual percentage yield (APY) on up to $5,000 and 3% APY on everything else with no fees or minimum balance requirements.

• Credit card: The Varo Believe Credit-Builder Card helps customers build credit without a minimum security deposit, extra fees, or interest. Varo doesn’t require a certain credit score to qualify, but applicants must have a Varo Bank account with money in it and $500 or more in qualifying direct deposits.

Read our full Varo Bank review

First Internet Bank’s products

• Checking account: First Internet Bank offers two types of checking accounts. Its interest-bearing checking account can be opened with $100 and charges a $10 monthly maintenance fee. Its free checking account doesn’t pay interest, but there’s no daily balance requirement.

• Savings account: First Internet Bank’s free savings account doesn’t charge any monthly service fee and can be opened with $25.

• Money market account: The money market account has a higher minimum to open at $100. It offers a tiered APY depending on how much money is held in the account. The biggest savers can earn well over 5% APY on their balance at the moment.

• Certificates of deposit: First Internet Bank’s certificates of deposit range from three months to five years with a $1,000 minimum to open an account.

• Health Savings Accounts: First Internet Bank’s health savings accounts are free to open and do not charge a monthly maintenance fee or impose a minimum balance requirement. They’re not connected to your employer either, so the account and funds are portable.

• Kids Savings Accounts: For younger savers, First Internet Bank offers a chance to start saving for the future. Parents can open a savings account for their child with a $100 minimum. Once their child turns 18, the savings account will be converted to a free savings account.

Read our full First Internet Bank review

NBKC Bank’s products

• Checking and saving account: NBKC offers a combination checking and savings account that allows customers to spend and save money with one account and earn interest on their balance. Customers can set up autopay for their regular bills, savings goals for future expenses, and track their progress and spending along the way.

• Money market account: Savers can take advantage of NBKC’s money market account which doesn’t charge any fees and has a minimum balance requirement of just one cent to earn interest on your balance.

• Certificates of deposit: NBKC’s CD terms range from six months to five years and require a minimum opening deposit of $1,000.

• Mortgages: Homebuyers and owners can benefit from NBKC’s home loans which include purchase loans, refinancing options, and home equity loans.

• Lending services: NBKC also offers other types of financing options like auto loans and personal loans.

Read our full NBKC Bank review

 

Online banking vs. traditional banking: key differences

Online banks and traditional brick-and-mortar banks typically offer the same types of products, but the lack of physical locations for online banks makes the banking experience quite different.

 

1. Branches: The most obvious difference between these two banking models is that brick-and-mortar banks have physical branches and online banks do not. If you’re the kind of customer who prefers to speak with a banking associate in person to open an account or resolve issues related to your account, an online bank may not be the right option for you.

2. Fees and interest: Online banks usually have lower operating costs because they don’t have to maintain office buildings or other physical infrastructure. As a result, an online bank may offer more competitive APYs or lower fees on their products. This isn’t a guarantee, but it’s worth comparing both types of banks to secure the highest interest rates and lowest fees for the products you’re interested in.

3. ATM access may be limited: Online banks typically do not have their own ATM network and rely on third-party networks to offer their customers ATM access. If you don’t like to carry cash and frequently use electronic transfers or payments, this is probably a non-issue. However, if you do use cash for certain expenses, it may be more difficult to access it without paying an extra fee. Certain third-party networks have the power to charge their own fees, even if your bank doesn’t. Many online banks offer ATM fee reimbursement, but it’s usually capped at a certain amount per month.

4. Mobile app and online banking experience: Online banks exist solely online, so it’s only natural that most of them will invest heavily in those platforms and provide you with greater digital banking capabilities. This could include mobile check deposits, mobile wallet integration, card locking and unlocking, ATM locator tools, budgeting tools, and more. Many traditional banks offer mobile apps, but they may be more limited in what they offer.

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What to consider when choosing an online bank

If you’re considering opening an online bank account, there are a few key factors you should consider to ensure that you choose the best bank for your personal finances.

Is this bank FDIC-insured?

Before considering any bank, whether it’s online or traditional, you should first verify that the bank is FDIC-insured. FDIC insurance protects the money in your deposit account up to $250,000 per depositor, per ownership category. Common ownership categories include single accounts, joint accounts, retirement accounts, trust accounts, business accounts, and more. The easiest way to verify that your bank offers deposit insurance is to use the FDIC’s "BankFind" tool, which allows you to type in any bank’s name, URL, or FDIC certification number to verify that it is indeed covered by the FDIC. Many banks also denote their status with “Member FDIC” noted on their homepage.

How easy will it be to access your funds?

The benefit of a bricks-and-mortar institution is that you can usually stop by your local branch to deposit cash and withdraw money free of charge when you need it. Online banks can be a bit trickier. Many online banks offer fee-free ATM networks, but it’s not guaranteed that you’ll have an ATM close to home. ATM cards are also not a guarantee with every online bank, and in some cases your only option for accessing your funds could be via electronic transfer to another bank account.

If you plan to make frequent cash deposits or prefer to pay for certain expenses in cash, you’ll want to consider whether an online bank’s ATM network and ATM card privileges will work for you.

How easy is it to speak to a real person?

Customer service may not be at the top of your list of considerations when choosing a bank, but mishaps can happen, and when they do, you might want to have a real human helping you to resolve it rather than a chatbot.

Be sure to review each bank’s customer service options to learn more about its customer service hours and the different methods for reaching a representative.

What kinds of fees or account minimums does this bank charge?

Online banks don’t typically have the same operational costs as brick-and-mortar banks, which is good news for their customers. The bank might offer fee-free or low-fee accounts in certain instances, or higher APYs. However, this isn’t always the case. Be sure to read the account terms and conditions of any accounts you’re considering and compare those figures with rates and fees from other banks to find the best option for your needs.

What kinds of capabilities does this bank offer on its online and mobile banking platforms?

Research the features available to customers on this bank’s mobile app and online platform. Some banks may not invest heavily in their digital tools and websites, and as a result, you could be limited as a customer. Functions you may find useful include transferring money between accounts, mobile check deposits, setting up automatic bill payments, and more. Think carefully about the features and capabilities that matter most to you and factor those in when making your decision about the best online bank for you.

Frequently asked questions (FAQs)

What is online banking?

Online banking involves banking at financial institutions that don't operate physical branches. These banks typically offer similar products and financial services to credit unions and traditional banks, but customers do all of their banking online or via mobile app.

Are online banks safe?

Online banks are just as safe as traditional banks, if not more so. As long as your bank is protected by federal deposit insurance, your deposits are federally insured up to $250,000 per depositor, per ownership category.

What is one con to using an online-only bank?

The most obvious drawback of online banking is that you don’t have access to a physical branch or face-to-face customer service when you need it. However, many online banks have expanded their customer support offerings to include late-night, weekend, or even 24/7 service hours to give customers greater access to a service representative.

What is the best free online bank?

The best free online bank will depend on your needs and preferences. That said, we chose Ally Bank's spending account as our top free checking account for its no monthly maintenance fees, competitive interest rates, and great customer service. Learn more about how to find the best online checking account.

How do I open a bank account online?

To open a bank account online, you typically need to visit the bank's website, choose the type of account you want (e.g., checking, savings), and provide personal information such as your Social Security number, a valid ID, and address verification. The process is usually straightforward; simply fill out an online application, which can often be done in a matter of minutes.

Do online banks have ATMs?

Many online banks provide access to ATMs. They often partner with nationwide ATM networks such as Allpoint or MoneyPass, which allow customers to use ATMs across the country without incurring fees. Some online banks may also offer reimbursements for fees charged by out-of-network ATMs.

Which online bank offers the highest interest rates on savings accounts?

You can see a list of banks that offer savings accounts with 5% APY or higher here. Keep in mind these rates are subject to change, so always verify rates and account terms directly with the bank before opening an account.

What are the benefits of using an online bank?

The benefits of using an online bank include higher interest rates on deposit accounts, lower fees, and 24/7 access to banking services via desktop and mobile.

How do I withdraw and deposit cash in an online account?

To withdraw cash from an online account, you can often use network ATMs or electronically transfer money between accounts. Many online banks also allow you to deposit checks through mobile apps, while some accept cash deposits at network ATMs or via reload networks like Green Dot.

Best online banks methodology

Our grading system, collected and carefully reviewed by our personal finance experts, comprises over 600 data points for over 20 FDIC-insured online banks to develop our list of the top 10 best online banks. We compared these banks across key metrics, including fees, customer experience, product selection, account features and security, and environmental and social responsibility.

The banks on our list could earn a maximum of 75 points across all five categories. Here’s a closer look at the categories we considered:

Fees: 20 points

We weighed each bank’s fees for its most basic checking and savings account options, as well as overdraft fees and ATM fees. Banks were awarded points for having no or lower fees, greater fee transparency, and clear, easy-to-access fee structures.

Customer service experience: 28 points

Customer service is a key element in a bank’s product offering, especially with online banks, where visiting a branch and asking for in-person help is usually impossible. Banks were scored on metrics including mobile app ratings on Apple and Google storefronts and methods for reaching customer service representatives. Banks that offered phone, chat, and email contacts were awarded the maximum points in that category.

We examined each website for information clarity as part of the customer service offering assessment. This subjective assessment looked at each bank’s website design, ease of navigation, language clarity, and whether customers could easily gather all the needed information to make an informed decision about any particular product.

We also awarded points to banks that offered more extensive ATM networks, credit monitoring tools, and educational resources.

Product selection and account features: 14 points

Each bank we analyzed could earn one point per product for each of the following:

• Checking accounts

• Savings accounts

• High-yield savings accounts

• Money market accounts

• Certificates of deposit

• Mortgages

• Personal loans

• Auto loans

• Home equity lines of credit

We also looked at the speed of ACH transfers and gave banks points for same- or next-day transfers, early access to paychecks, Zelle as a service, and being part of FedNow — the Federal Reserve’s instant payment service.

Security: 10 points

We carefully considered each bank's security measures to protect your money and sensitive information. We looked at factors such as multi-factor authentication, website encryption, alerts for suspicious activity, zero fraud liability, and whether each bank had a dedicated security page or hub.

Environmental and social responsibility: 3 points

Many consumers consider a bank’s carbon footprint and philanthropic efforts before deciding on a particular institution. As such, banks that have dedicated pages to their philanthropic efforts and environmental goals, and have pledged to reach net zero CO2 emissions by 2050 scored up to 3 points for doing so.