Why Open an Online Checking Account?

An online checking account beats a traditional checking account for the same reason as email beats the postal system and online shopping beats brick-and-mortar stores. Online checking accounts are based on traditional checking accounts, but with more convenience, less cost, and less hassle.

Online checking accounts have been around since the early days of the internet, but at first were quite limited in terms of functionality. In recent years online checking accounts have become more sophisticated. In fact, many online checking accounts now include a free mobile app that lets people do their banking from their phone. 

These days, consumers can do virtually all their banking online or on their mobile banking app, from bank-to-bank transfers, to depositing checks, to scheduling bill payments. Many online banks even offer add-ons like ID theft insurance, roadside assistance, and retail rewards programs.

How to Compare Online Checking Accounts

No 2 checking accounts are equal, so it’s worth doing a comparison shop before settling on an online bank. The following is a checklist of things to focus on when comparing online checking accounts.

• Monthly Fee: Some online checking accounts come with no monthly fees while others come with a flat monthly fee (typically ranging from $1 to $50). Typically, banks agree to waive the monthly fee if the customer keeps their balance above a minimum amount (e.g. $1,000 or $10,000). Always ask what you’re getting for your fee. For a basic checking account, there shouldn’t be any fee. For an account that’s packed with features, a fee is considered acceptable.
• Additional Fees: Online banks always charge a fee for international transfers and some also charge for domestic transfers. Most online banks offer free ATM withdrawals from their own ATMs and reimbursements from third-party ATMs.
• Customer service: Some online banks have physical branches, while others operate exclusively online. Some offer personalized customer service (usually for a monthly fee) while others make you wait on the phone with everyone else. Some offer live chat straight from your online or mobile bank account, others don’t. Many online banks offer round-the-clock customer service.
• Savings accounts: Some banks only offer checking accounts. Others offer a selection of checking accounts, savings accounts, and certificates of deposit. Better yet, some banks offer hybrid checking-savings accounts that let the customer simultaneously have everyday access to their account and save money.
• Credit or debit cards: Like regular checking accounts, online checking accounts usually come with the option of linking a credit or debit card to the account. Online banks are increasingly offering customers a choice of credit card plans, each with a different rate and different set of features and benefits.
• Loans: Another benefit of opening an online checking account  is it can give you easy access to loans. Depending on the bank, there may be personal loans, home loans, auto loans, and many other types of lending products. Online loans offer the same benefits as online checking accounts: greater convenience, lower fees, and quicker applications.

Our Top Online Checking Account as of Nov 21st 2024

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What Services do Online Checking Accounts Offer?

Online checking accounts offer all the same functions as traditional checking accounts—and more. Online checking accounts have revolutionized banking, allowing users to do everything they would have previously done in-branch from the comfort of their own home, or from on the go.

Here are some of the features usually offered with an online checking account:

• Domestic and international wire transfers - Send and receive money between your account and another person’s account.

• Transfer money between accounts - Transfer money between your own checking and savings accounts.

• Multiple account integration - Keep your accounts organized and easy to access. 

• Bill payment - Stay on top of your bills and set reminders so you never miss a beat.

• Digital check deposit - Instantly scan and deposit a check with your smartphone and get access to the funds straight away. 

• Digital/downloadable account statements - Great for managing your budget, and for instantly sending records to your accountant.

• Mobile banking app - Manage your accounts from your mobile device.

• Mobile payments - Make purchases straight from your account with Google Pay, Apple Pay, or Samsung Pay.

• Sophisticated security and encryption - Keep your data safe with multi-factor authentication and extra-strong encryption.

• FDIC Insurance - Deposits insured up to at least $250,000 (and sometimes as high as $1.5 million, depending on the bank).

• SMS / email alerts - Notifications whenever any unusual or suspicious activity occurs in relation to your bank account.

• ATMs - Withdraw money from thousands of ATMs in the US and around the world, and get reimbursements from third-party ATM withdrawals.

• Credit card rewards - Get points for making purchases with your account-linked credit card

VaroMoney Terms and Conditions

¹ Annual Percentage Yields (APY) are accurate as of December 1, 2022. Rates may change at any time without prior notice, before or after the account is opened. You can earn 5.00% on your first $5,000 if you meet these requirements: Make sure that you Varo account balances are above or equal to $0 at the close of the month. Receive total direct deposits of $1,000 or more each qualifying period. Additional balances over $5,000 will earn 3.00% APY. The requirements must be met within the Qualifying Period which begins on the first calendar day of the month and ends at the close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Meet the requirements in the current month to qualify to earn 5.00% APY for the following month. Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency. Tax refunds and government stimulus payments, Person-to-Person payments (such as Venmo) and funds deposited using a Varo routing number are not considered a direct deposit. Be aware that interest is paid in whole cents only.

Chime Disclaimer

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

˜ Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

* SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime's sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

^ Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

⁺ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

¹ Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account into your savings account. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more into your savings account.

² FDIC deposit insurance limit to $250,000 per depositor, per insured bank, per ownership category. For Stride Savings Account depositors, funds are eligible for FDIC insurance when it arrives at the bank. Please visit www.chime.com/savings-apy-and-program-banks/ for more details on FDIC insurance.

³ Sometimes instant transfers can be delayed. The recipient must use a valid debit card to claim funds. See your issuing bank’s Deposit Account Agreement for full Pay Friends Transfers details.

⁴ The average national savings account interest rate of 0.17% is determined by FDIC as of September 19, 2022 based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Visit National Rates and Rate Caps to learn more.

⁵ Chime will be offering members a chance to get their federal tax refund up to 5 days early when they file directly with the IRS and direct deposit with Chime. Getting your federal tax refund early is simple, just sign up for a Chime Checking Account, file your return with the IRS, and set up your tax refund to direct deposit into your Chime Checking Account. After setting up direct deposit, members will also be eligible to get regular paychecks up to 2 days early^.

SoFi Disclaimer

*Terms Apply
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.

SoFi members with Direct Deposit can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.20% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% 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 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Additional FDIC Insurance - SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms See list of participating banks at SoFi.com/banking/fdic/receivingbanks 

One Cash Disclaimer

1. 4.35% annual percentage yield (APY) applies to the Savings balance of One Cash customers who either (i) received $500 or more of eligible direct deposits in the previous month or (ii) have a total daily account balance of $5,000 or more. 4.35% APY is also earned on Pay Autosave balances without these deposit or balance requirements. In all instances, 4.35% APY is limited to a total Savings balance of up to $250,000. All other Savings balances will earn 1.00% APY. APYs are as of 10/10/2024, but may change at any time before or after account opening.

2. To receive 3% cash back, eligible customers (at the time their purchase settles) must (i) have received $500 or more of eligible direct deposits in the previous month, or (ii) have a total account balance of $5,000 or more. 3% cash back is limited to up to $50 per year and applies only to purchases made at U.S. Walmart locations and on Walmart.com. This promotion may not be combined with other One promotions that offer cash back on purchases at Walmart.Terms Apply.

3. Cash back can be earned through the Debit Rewards Program. Individual offer details can be found in the One app. Terms Apply.

4. Direct deposit may be available up to 2 days in advance, but depends on when your employer sends paycheck data.

5. Available with Direct Deposits totaling at least $500 in the previous month. You must be 18 or older to receive Overdraft Protection. When on, Savings Backup will be used before Overdraft Protection. Overdraft balance is due right away. Transactions eligible for Overdraft Protection are at the discretion of One and may exclude certain transactions (e.g., bill pay, global transfers). See details

6. Allpoint Network ATM transactions are fee-free for accounts with eligible direct deposits totaling at least $500 in the previous month. For all other ATM transactions the One ATM Fee will apply and third-party ATM fees may be incurred.