Top Online Banks of 2024

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Many of us grew up making the journey to a brick-and-mortar bank to hand a paper check to a teller. But now, with online banking, you can bank without leaving your home. Many online banks even offer perks that in-person banks don’t, like high savings account interest rates and no monthly fees.

Best Online Banks of April

Best Online Bank Reviews

Below, we’ve provided information comparing top-rated online banking platforms. We know “best” means something different for everyone, so we’ve listed each bank’s strengths, as well as its limitations. These online banks have stayed as our top picks for the last few months because they continue to stand out for minimal fees, variety of bank account options, and unique features. You can also refer to our best banks guide if you’d like to learn about brick-and-mortar options as well. 

Ally Bank

Ally doesn’t have minimum opening deposits for any of its accounts, so you can start online banking with any amount.

The Ally Savings Account makes it especially easy for you to save. You can set up separate savings buckets for different goals, such as Emergency Savings or Travel Fund. The Surprise Savings feature assesses your checking account balance three times per week to determine how much you can afford to save, then transfers money into your savings account.

You can contact Ally customer support 24/7, either over the phone or via live online chat.

The Ally Spending Account is a solid account, but it doesn’t come with any special features, such as cash back or a competitive interest rate. If you want a rewards checking account, you may want to go with one of the other banks on this list.

Ally Bank Review

Capital One 360

Capital One ranks as No. 1 on the J.D. Power US National Banking Satisfaction Survey. This study evaluates customers’ experiences with banks and measures factors such as trust, handling problems and complaints, and saving time and money.

Capital One doesn’t require any minimum opening deposits. It also has branches and Capital One cafes sprinkled around the U.S., so it’s a good option if you like online banking but want the option to speak with a banker face-to-face.

You can use your debit card at over 70,000 ATMs nationwide for free, but unlike many online banks, Capital One doesn’t reimburse any fees charged by out-of-network ATM providers.

Capital One 360 Bank Review

Discover Bank

Discover is a good option for people who want to do all their banking, investing, and borrowing with one institution. Discover has a strong cash back checking account that lets you earn 1% back on up to $3,000 of purchases each month (see website for details), as well as Discover credit cards.

While you don’t need to place an initial deposit for a checking or savings account, you’ll need at least $2,500 to open a money market account or CD. Some of our other options do not require a minimum opening deposit.

Discover Bank Review

Axos Bank

Axos Bank has savings, checking, CD, and money market accounts, so it’s a great option if you want to open all of your accounts with one bank. It’s one of the best banks for avoiding overdraft fees. Its high-yield checking account doesn’t charge overdraft or non-sufficient funds fees, and it offers free overdraft protection that links your checking account to a savings account.

You also may be eligible for a bank account cash bonus. Earn up to $300 welcome bonus when you use the promo code AXOS300 to apply for a Rewards Checking account and have qualifying direct deposit(s) by 6/30/24.

Axos pays higher rates on its accounts than most brick-and-mortar banks, especially on its high-yield checking account. However, you can still earn higher rates at other online banks.

Axos Bank Review

SoFi

SoFi has a great online banking option if you’d like to manage your money in one account. It’s a hybrid bank account that combines checking and savings features.

You can earn a competitive interest rate that’s higher than what many traditional and high-yield savings accounts pay if you set up direct deposits. It also offers up to $300 cash bonus through June 30, 2024 if you meet certain requirements.

SoFi Checking and Savings is also a strong online banking choice if you don’t want to deal with monthly service fees, overdraft fees, or out-of-network ATM fees. It also comes with a debit card. 

The account is a hybrid savings/checking account, so you’ll need to keep that in mind to get the most out of the account. If you deposit cash, you also might need to pay a fee.

SoFi Bank Review

Best Online Banks FAQs

Online Banking Trustworthiness and BBB Ratings

None of our top picks have any recent public scandals.

Here are the Better Business Bureau  scores for all the banks on our list:

The Better Business Bureau measures businesses by examining responses to customer complaints, honesty in advertising, and transparency about business practices.

Ally received an A rating from the BBB rather than an A+ because it has a few unresolved complaints.

Something to keep in mind is that a good BBB rating won’t guarantee that your interactions with the bank will be great. Consider speaking to current customers or reading online customer reviews to see if one of these banks may be suitable for you. 

Capital One and Discover have been involved in a recent public controversies. 

Capital One used to have an account called 360 Savings. In 2019, Capital One launched the new 360 Performance Savings Account, which paid a much a higher interest rate. Many customers thought their old savings accounts would automatically transition into this new one, but in reality, they had to manually open a new 360 Performance Savings Account to earn the higher rate. So some customers have been earning a significantly lower savings rate for years.

In the lawsuit, the plaintiffs’ lawyers allege that Capital One didn’t inform 360 Savings customers that these were two distinct accounts, or that 360 Performance Savings paid a higher rate. However, Capital One wants this case dismissed because it claims people had every opportunity to learn these facts on their own. The case is still ongoing.

In 2024, Discover was required to pay $1 million in a settlement that claimed Discover denied Deferred Action for Childhood Arrivals, or DACA, recipients loans because of their immigration status. In the settlement, Discover has also agreed to rewrite its lending rules so DACA recipients are equally eligible for loans as U.S. citizens.

Best Online Banks Offer Comparison

Criteria for Evaluating Online Banks

Security Measures and Digital Safety

Security is important for any bank, but this is especially true for online banks. When considering an online bank, you’ll want to make sure it follows certain safety procedures. Like all banks, it should be FDIC-insured; it should also have secure online banking features, like encrypting your banking information in case of hacks and requiring multi-factor authentication to log in.

Range of Services and Account Types

The best banks offer many different banking services and accounts for users to choose from. For example, a bank might offer checking accounts, savings accounts, money market accounts, CDs with many different term lengths, personal loan options, mortgages, credit cards, and more.

This means you can keep all your banking services with one bank, even as you grow financially and start needing access to new types of accounts.

Fee Structures and Interest Rates

One of the major reasons to switch to an online bank is because of their low fees and strong interest rates for savings accounts. You can expect to find online banks with no monthly fees and high annual percentage yields on savings accounts, money market accounts, and CDs.

A bank that avoids ATM fees by offering extensive free ATM networks is also important, so that you can safely get cash anywhere in the United States without having to pay extra.

Customer Service and User Experience

The best digital banking customer service will feature 24/7 customer support, with phone line, live chat, and email options. You’ll also want a bank that has an easy-to-use online website and mobile banking app. Websites that provide all the information you need upfront and mobile apps with high ratings are both signs that a bank values user experience.

Benefits of Banking with Online Banks

Convenience and Accessibility

Online banks are typically both convenient and accessible. They can be accessed from any computer or mobile phone through a mobile banking app. Opening accounts online can take as little as five minutes, and you’ll be able to access your banking information without having to go into a branch. 

Typically Lower Fees and Higher Interest Rates

Because online banks aren’t connected to brick-and-mortar branches, they can generally offer you higher interest rates on things like high-yield savings accounts without charging monthly service fees. You’ll find many of our best high-yield savings accounts in online banks, for instance.

Many of our best free checking accounts are with online banks, as well.

Advanced Digital Tools and Features

Online banks frequently have better digital features than traditional brick-and-mortar banks. For instance, most online banks will help you learn how to make a mobile check deposit with their app. In comparison, not all brick-and-mortar banks offer mobile check deposit, making you go into a branch to deposit checks instead.

Online banks might also offer things like Zelle for easy money transfer, too.

Security Considerations of Online Banks

Keep in mind that banking online might offer unique security issues that in-person banking doesn’t. For example, having a bank account with a username and password means that someone could potentially use techniques like phishing to access your account, steal your banking information, and take your funds. 

The best way to keep that from happening is to use a strong, unique password that you don’t use for any other account and enable multi-factor authentication, preferably with an app like Microsoft Authenticator instead of through SMS. That means that, even if someone does figure out your password, they won’t be able to log in unless they also have access to your authentication account.

How to Choose the Right Online Bank

Matching Bank Features with Your Financial Goals

Ultimately, the best bank for you will depend on what you want from a financial institution. For example, if you’re looking for a bank to use for all of your banking needs, you’ll want to prioritize an online bank with a wide range of features. If you already have a bank you’re comfortable with, but you want the best 1-year CD rate possible, you’ll want to prioritize a bank that offers strong savings rates.

Since online banks are all equally accessible, make sure to shop around to find one that offers exactly what you’re looking for.

Evaluating the Mobile App and Online Interface

Even if a bank offers everything you want, you should still make sure that its website and app are easy to use. If you lose your debit or credit card, for instance, you don’t want to have to spend hours struggling with an unclear website trying to figure out how to report the loss. And you don’t want to accidentally transfer more money than you meant because of a buggy interface.

Spend some time on the bank’s website and check out its app ratings before you commit.

Why You Should Trust Us: Our Expert Panel for the Best Online Banks

To learn more about what makes a good online banking experience and how to choose the best fit, four experts weighed in:

BI

We’re focusing on what will make an online bank most useful, including customer service, fees, rates, and more. Here’s what they had to say about banking online. (Some text may be lightly edited for clarity.)

How can someone determine whether a bank is the right fit for them?

Tania Brown, certified financial planner and vice president of coaching strategy at OfColor:

“Obviously, you want to make sure it’s FDIC-insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”

Sophia Acevedo, banking editor, Business Insider: 

“I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I’m searching for an interest-earning bank account I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”

What should someone look for in an online bank?

Tania Brown, CFP:

“With an online bank, absolutely online customer service, because you do not have the advantage of walking inside and talking to a human being. How often are you able to get them? What are their hours?”

Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:

“How onerous the transfer process is, transferring money in and transferring money out. Is it same day, next day? Is it pretty easy to sync a brick-and-mortar checking account to this particular high-yield savings account?”

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

“When it comes to online banks, you want to be a little bit more strict about what type of interest rates they’re providing. That’s the biggest thing, because online banks are supposed to have the higher interest rate because they don’t have the overhead of the brick-and-mortar. You want to make sure that it’s well above the national average. What type of securities do they provide? Do they have two-factor identification? If it’s an online bank, they should definitely have — at the bare minimum — two-factor authentication in how easy it is to change your passwords and things like that, because you want to be a little more hypersensitive about the cyber security for a strictly online bank.”

Our Methodology: How We Chose the Best Online Banks

A Business Insider, we aim to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

While interest rates are an important aspect of any online banking account, several offer the same annual percentage yields (APYs). To differentiate between them, we considered how much you’ll need to open an account, balance requirements, fees, ATM access, mobile apps, and other standout features.

We also took customer service into account, because with an online bank, you don’t have the option of walking into a branch to speak with a representative.

We reviewed over two dozen institutions to identify the strongest options. To learn more about how we rate and review products, visit our editorial standards page.

See our full ratings methodology for checking, business checking, savings, and money market accounts »

Online Banks That Didn’t Make the Cut and Why

• Chime: Chime has good free checking and savings accounts, but other online banks offer higher interest rates on savings accounts right now. Chime also doesn’t let you open a joint bank account or a savings account by itself. 
• LendingClub: This could be a good online banking fit if you can keep $2,500 in your checking account, because then you’ll qualify for 1% cash back on an unlimited number of purchases.
• American Express: American Express pays a competitive APY on savings account balances. Its checking account is currently only available to Consumer Card Members who have had a card account for at least three months.  
• Barclays: Barclays offers solid interest rates on savings accounts but doesn’t provide a checking account. 
• Bank5 Connect: Bank5 Connect has decent checking and savings account. But it doesn’t have a money market account, and you can find higher interest rates at other online banks.
• CIBC Bank USA: This online bank offers a variety of checking and savings accounts, but most require a minimum opening deposit or charge a fee if your balance falls below a certain amount. The checking account is also only available to residents in Illinois, Michigan, Missouri, or Washington.
• Salem Five Direct: Salem Five Direct pays a competitive interest rate on a savings account, but its CDs have high minimum opening deposits.
• HSBC Bank: HSBC might be appealing if you qualify for a premier bank account. You might like HSBC if you can keep $75,000 in bank/investment accounts, receive $5,000 in direct deposits each month, or take out a mortgage of at least $500,000. 
• Marcus by Goldman Sachs: Even though Marcus by Goldman Sachs is a good online banking option overall, it doesn’t offer a checking account. 
• Quontic Bank: You have plenty of bank account options to choose from with Quontic Bank — but you need to make 15 debit card transactions per month to earn the competitive APY on its high-yield checking account.
• EverBank: EverBank offers respectable rates, but our top picks have more impressive features such as higher interest rates or robust savings tools. 
• Vio Bank: This online bank pays one of the highest savings rates in the industry (which is always subject to change), but it doesn’t offer a checking account.
• CIT Bank: This is a solid online bank, but you’ll need between $100 and $1,000 to open bank accounts, and it doesn’t have an ATM network. 
• Synchrony Bank: This online bank pays a competitive rate with no minimum balance on savings accounts, but you can’t open a checking account. 
• NBKC Bank: NBKC is a good bank overall, but you can find higher interest rates at other banks.
• FNBO Direct: This is a respectable online bank, but its overdraft fees are pretty steep.
• BrioDirect: Although BrioDirect doesn’t have some of the advanced features of our top picks, it is a strong online bank overall. It refunds up to $20 per month in out-of-network ATM fees.
• USAA Bank: This could be a good online bank for military members and families, and new recruits can get paid a day early; however, USAA’s rates are low.
• Charles Schwab: Charles Schwab provides unlimited out-of-network ATM fee reimbursements and doesn’t charge foreign transaction fees, but its rates are low.

Sophia Acevedo, CEPF

Banking Editor

Kit Pulliam

Personal Finance Insider editorial fellow

Evelyn He

Compliance and Operations Associate

Evelyn He is a compliance and operations associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 15-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

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