9 Best Online Banks

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There are actually several banks that operate solely online.

These online banks are held to the same standards required by the federal government and are insured by the FDIC. It’s just that you won’t find an actual physical location for most of these banks.

We will go over their fees, how they keep up with competitive rates and what banking options they provide.

Note: We have ranked these accounts in no particular order. If in some cases interest rates are mentioned, those rates are subject to change.

Top Online Banks

There are many online banks these days, and most have plenty of attractive features to offer. We found best online banks so you can pick the best option that works for you.

1. Axos Bank

Axos Bank, formerly Bank of the Internet, calls itself “America’s oldest and most trusted Internet bank.” It has some great products to offer.

  • Monthly fees: $0 on checking and savings account
  • Minimum balance requirement: $0
  • ATM fees: Unlimited domestic ATM fee reimbursements
  • Interest earned: Yes, on some checking and all savings accounts
  • Better Business Bureau rating: A+

Rewards Checking

Axos Bank’s Rewards Checking account will pay you interest on its three interest-earning conditions.

  • It’ll pay interest if you have direct deposits of at least $1,000 coming into your account each month
  • It’ll pay you more interest if you have at least ten debit card transactions each month (minimum amount for debit transactions is $3)
  • And if you use your debit card another 5 times during the month, you’ll earn additional interest on your balances ($3 minimum transaction applies here too)

Also, there are other account options with Axos, including a cash back checking.

High-Yield Savings Account

Besides, Axos has a High-Yield Savings Account and High-Yield Money Market account that pay attractive rates.

Axos Bank

Banking Evolved.

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Best for: Those looking for an online bank that pays you interest on your checking account.

2. Discover Bank

The clever tagline from Discover Bank reads, “Everything you want from a bank, without ever setting foot in one.” That about sums it up. Who needs bank branches when you can do banking from your own home?

Discover online banking has lots to offer, including checking, savings, money market accounts, CDs and IRAs. Here’s a bit of info about their checking account.

  • Monthly fees: $0 on checking and savings account
  • Minimum balance requirement: $0
  • ATM fees: None at over 60,000 in-network ATMs
  • Interest earned: yes, on savings accounts, no on checking, but cash back on debit card purchases
  • Better Business Bureau rating: A+

Discover Cash Back Checking

Discover’s Cash Back Checking account gives you 1% cash back on debit card purchases up to $3,000 every month. This is a great feature for those of you who like to earn some money back on credit card purchases.

Discover Online Savings

Discover’s Online Savings account pays interest, carries no monthly fees, no minimum balance fees and has no minimum opening deposit.

Other Discover Products

In addition to the two mentioned above, they also have a Money Market account that pays an attractive yield and high-yield CDs and IRAs.

Discover Bank

Watch for cash rewards and competitive APYs.

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Best for: Those looking for an online bank that has several different banking solutions.

3. Bank 5 Connect

Bank 5 Connect has great checking and savings accounts options. But they’re also well known for providing “above and beyond” customer service. This is one of the reasons they made our list.

Some account features include:

  • Monthly fees: $0 on checking and savings account
  • Minimum balance requirement: $10 to open, $100 to earn interest
  • ATM fees: Free access to SUM Network ATMs, up to $15 in reimbursements per statement cycle for other ATM charges
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A+

High Interest Savings

Bank 5 Connect has a high-interest savings account available. There is a small $10 minimum to open the account, and the minimum balance to earn the high yield interest rate is only $100.

There are no monthly maintenance fees for having the account. However, they do charge $1 per month if you want to receive your statements via U.S. mail instead of choosing the electronic statement option.

Attractive CD Rates

Bank 5 Connect also has attractive CD special rates.

Best for: Those who value customer service when using an online bank.

4. FNBO Direct Bank

FNBO Direct Bank has online checking and savings accounts with many attractive features.

  • Monthly fees: $0 on checking and savings account to open or maintain
  • Minimum balance requirement: $1.00 to open, $0.01 to earn interest
  • ATM fees: No ATM fees from FNBO Bank
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A+

Online Checking Account

FNBO’s Online checking account has cool added benefits such as free debit card fraud monitoring and free stop payments for checks.

Online Savings Account

The online savings account has an attractive interest rate and free transfers with Popmoney.

Learn More: FNBO Direct Review

5. Capital One 360

Capital One 360 has several great products to offer online banking customers, including both savings and checking accounts.

  • Monthly fees: $0 on checking and savings account to open or maintain
  • Minimum balance requirement: $0 to open, no minimum balance requirement after that
  • ATM fees: Fee-free ATM access at over 40,000 ATMs
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A

The 360 Checking Account

The 360 Checking Account has some great benefits. If you become overdrawn on your checking account, you can set up transfers from your Capital One savings. Note that you have to set this up in advance of an overdraft.

Capital One also has a Teen Checking Account with similar benefits:

  • No minimum balance requirements
  • No monthly service fees
  • Interest earned on all account balances

Note that teens under 18 years of age who want to open a teen checking account are required to have a cosigner on the account who is over 18 years of age.

The 360 Savings Account

The 360 Savings account is currently paying attractive interest rates on account balances of any amount. There are no monthly fees for this account and no minimum balance requirements.

The 360 Kids Savings Account

Capital One’s Kids Savings account pays interest as well. As with their traditional savings account, there are no monthly fees and no minimum balance requirements.

Capital One also has Traditional IRAs, Roth IRAs and CDs available.

6. Charles Schwab

Charles Schwab has several accounts that could be great for you. Here are some of the benefits of Schwab checking and savings accounts.

  • Monthly fees: $0 on checking and savings account
  • Minimum balance requirement: $0
  • ATM fees: unlimited ATM fee rebates
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A

High Yield Investor Checking Account

Charles Schwab’s High Yield Investor Checking Account pays interest on all checking account balances.

However, this checking account must be tied to a Charles Schwab brokerage account in order to qualify for the deal.

The good news? Schwab One Brokerage Accounts are super affordable: there are no monthly fees for a brokerage account.

Bonus: the minimum account balance is waived if you have automatic deposit amounts of at least $100 going into your Schwab One Brokerage account each monthly. And online trades only cost $4.95 each.

Although the Charles Schwab interest rate is lower than some of the other banks mentioned here, it’s still higher than many traditional banks are paying. And the connection with the brokerage account is a nice feature.

7. CIT Bank

One of the reasons we love CIT Bank is because it pays higher than most banks on its Money Market Savings Account. GOBankingRates chose CIT as one of its Top Ten Online Banks.

Here’s some information about CIT Banks personal accounts.

  • Monthly fees: $0
  • Minimum balance requirement: $100 to open, no minimum balance requirement after that
  • ATM fees: None from CIT Bank, reimbursed up to $30 per month for fees from other banks
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A-

CIT Bank eChecking

CIT Bank’s eChecking account is a true online checking account. You’ll use your eChecking funds via your debit card, bill pay, ACH or other electronic methods.

Savings Accounts and CDs

CIT Bank offers a competitive rate on its savings accounts too. The Money Market account, the Savings Builder account and the Premier High Yield Savings account carry minimum opening balances of just $100.

This low opening balance makes each doable for nearly all levels of savers.

They also have a wide variety of CD and IRA options that pay some of the highest interest yields in the country, and many of their offerings come with a low $1,000 minimum opening balance.

If you have kids, you might be excited to know that CIT offers custodial checking and savings accounts as well.

This bank may also be able to help you if you need a mortgage loan, whether it be a purchase loan or a mortgage refinance.

CIT Bank

THeir high interest savings accoung pays more than 10 times traditional banks and they offer competitive rates on other products.

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8. BBVA

It’s easy to set up a BBVA Savings Account. If you apply for a savings account online with a $25 minimum opening deposit and an APY of 0.01%, you’ll earn extra money for placing your money in an interest-bearing savings account.

  • Monthly Service Charge: No monthly service charges
  • Minimum balance requirement: $25 to open, no minimum balance requirement after that
  • ATM fees: None at BBVA USA ATMs
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: A-

It is easy to make cash deposits and withdraw money in branch locations and via BBVA ATMs with no ATM fees.

Online Checking

BBVA’s online checking account comes with a free debit card. And you’ll earn cash back when you use that debit card for purchases.

Plus, check out BBVA’s Express personal loans, too, with potential for same-day funding.

BBVA

Offers a strong online banking platform.

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9. Ally Bank

Ally Bank offers checking accounts, savings accounts, auto loans, home mortgage loans, credit cards, investment options and more with their online banking services.

Here’s a little bit of info about their online checking accounts.

  • Monthly fees: $0 on checking and savings account
  • Minimum balance requirement: $0
  • ATM fees: None at Allpoint ATMs, reimbursement for other bank ATM fees up to $10 per statement cycle
  • Interest earned: Yes, on checking and savings accounts
  • Better Business Bureau rating: C

Interest Checking

Ally’s interest checking account pays an interest rate that depends on the balance you keep in the account.

There are no monthly fees associated with this account and you get free checks.

Online Savings

Ally’s online savings account pays interest on all balances, and there are no monthly fees associated with the account.

Ally also offers home mortgage loans (both purchase and refinance loans), and a wide array of other banking and investment services.

Bonus: Ally’s customer service center is available to take calls 24 hours a day, 7 days a week.

FAQ

What is the difference between an online bank and a local bank?

Online banks are mainly online. The benefit of them not having local branches is you can bank from anywhere online.

How do I open an account with an online bank?

With any online bank, simply go to their online website and look for the get started or open an account button.

Are online banks safe?

We recommend you look for online banks that are FDIC insured and have been reviewed by the BBB. Financial institutions aren’t risk free yet make sure you do your due diligence prior to signing up.

How do I choose the right account?

Most banks will offer similar types of checking and savings accounts. Ask yourself what you need most. Do you need a checking account that gives you rewards or lets you access your direct deposits faster?

Make a list of what is offered and what fits your needs.

Summary

If you’re interested in earning more money on your bank account, consider opening an interest-bearing online bank account.

Most online banks also offer better mortgage rates, consumer loan rates or credit card rates than many traditional banks.

And earning a higher interest rate on your checking and savings accounts can help make it easier for you to save more money in the long run.

Although you might find it disconcerting to do your banking at a bank that doesn’t have a physical location, take comfort in the fact that reputable online banks are FDIC insured and many have been around for decades.

Plus, in today’s world, most of us are used to using a mobile app to do most everything. Why not a mobile check deposit account?

However, make sure to do your due diligence and read the fine print with any bank. Besides, watch for any transaction or overdraft fees, and understand what banking products they offer.

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Comments

  1. You are forgetting PSECU! They have members all over the world, excellent customer service, tons of free services (that many of the banks on your list charge for…i.e. Checks, bill payer, minimum balances, overdraft protection, etc), $5 minimum requirement to have an account, interest (including in checking), etc.

    • There very well may be others we could add, but didn’t, to this list. Thanks for mentioning that one. There may be individuals who want to check it out. 🙂

  2. I found this site, Well Kept Wallet, to be very helpful when considering online banks.

    • That’s great! We’re glad we could help! 🙂

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