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Our Best Online Banks of 2024
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Best Online Banking Companies 2024
Traditional bank branches are becoming less essential as online banking offers convenience for everyday tasks like checking balances and transferring funds. However, with numerous online banks emerging, choosing the right one can take time.
To simplify the process, our team of finance experts has evaluated top online banks based on criteria such as APY, fees, product offerings, and more.
Discover our list of the best online banks for 2024, featuring services, pros and cons, and cost comparisons. We aim to help you cut through the muck, saving time and money.
Our Best Online Banks:
1. SoFi : Our best online bank overall
2. Bank5 Connect: Our best for connecting to a banker via video
3. Chime: Our best for building your credit
4. Quontic Bank: Our best for high-yield savings
5. Western Alliance: Our best for small business banking
6. Citi Bank: Our best for its new customer bonuses
7. Discover Bank: Our best for adding cash to an online account
8. PNC Online Banking: Our best for their Virtual Wallet account
9. Alliant Credit Union: Our best for saving for a goal
10. Varo Bank: Our best for cash advances
11. Capital One: Our best for student checking
Methodology: How We Reviewed the Best Online Banks
Best Money rates banks and credit unions by evaluating factors like checking, savings, certificates of deposit (or credit union share certificates), banking experience, and overdraft fees.
First, we aimed to find banks suitable for many customers—from small business owners to those with low credit scores. Our evaluation criteria included interest rates, fees, ATM and branch availability, account features, technology usability, customer service quality, and levels of innovation.
We assessed online reviews, including Better Business Bureau ratings, our own experiences, Consumer Reports reviews, and many other sources to identify a wide range of customer feedback.
Next, we considered several key criteria to determine our rankings:
- Product offerings: We examined what products and benefits make a bank stand out.
- APY: We looked at banks offering high annual percentage yields and those that limit higher interest rates to customers who significantly invest in their savings accounts. Some banks also offer interest-accruing checking accounts, which is a nice perk.
- Fees: While many banks offer free accounts, others charge fees. Some banks waive these fees if customers meet certain criteria, such as setting up direct deposit or maintaining a minimum balance.
- ATM network: For banks without a physical presence, robust ATM accessibility is crucial. Some banks waive a certain amount of out-of-network ATM fees.
- Customer support: We assessed support effectiveness, response times, and customer satisfaction.
- Digital experience: We checked if online banks to offer features like checking account balances, paying bills, and sending peer-to-peer payments. We also evaluated the mobile app experience since many people bank on the go.
- Minimums: We considered banks' minimum balance requirements for checking or savings accounts and the requirements to earn the APY.
Our Best Online Banks - Quick Reviews:
1. SoFi - Our best online bank overall
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| One-stop online banking | No fees other than out-of-network ATM fees Savings: 4.60% APY Checking: 0.50% APY | Member benefits, including travel offers, rate discounts on loans, and more | Freeze a debit card on the go, two-factor authentication (2FA) |
If you’re looking for a place to bundle financial services, SoFi offers offers personal loans, mortgage loans, student loans, investing, credit cards, and insurance. And, you get access to over 55,000 fee-free ATMs across the US.
The website is easy to navigate, though it can be a bit overwhelming due to all the different services SoFi offers. The mobile app is easy to use and houses all the services that you might need, from banking to investing.
Why we chose SoFi: We chose to review SoFi due to its member benefits. Just by having an account (of any type), customers get access to a slew of services, including member discounts on loans, estate planning, travel offers, financial insights, access to an online community, invitations to special experiences and events, and VIP treatment at the SoFi Stadium in Los Angeles.
What customers are saying: Customer reviews of SoFi are generally mixed. Some users praise the VIP treatment and member benefits, while others express concerns about customer service and the website interface. Customers are often pleased with the high annual percentage yield (APY) on savings accounts and the range of additional services offered, such as personal loans, investing, and credit cards. Despite any criticisms, many customers appreciate SoFi's efforts to innovate and provide a comprehensive financial platform.
PROS
CONS
2. Bank5 Connect- Our best for connecting to a banker via video
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Connecting to a banker via video |
| Up to $15 reimbursed for out-of-network ATM fees per statement cycle | Encryption for online security |
While Bank5 Connect offers checking and savings accounts, its Jumbo Savings account really stands out. With this account, you can earn 5.10% or higher on balances of $25,000 or more. The bank also offers a cash-back debit card for its checking accounts. The mobile app allows customers to transfer money between accounts, send Zelle payments, and even view a Quick Balance without logging in.
Why we chose Bank5 Connect: Bank5 Connect stands out due to its video banking. This tech-forward company uses video to let customers speak face-to-face with a real banker. For tasks that normally require an in-branch visit, such as notarizing a document, video banking is a real time-saver and convenient.
What customers are saying: Bank5 Connect receives positive reviews, particularly for its user-friendly interface and video banking convenience. Customers appreciate the high APYs on savings accounts and the fee-free ATM reimbursements. However, some concerns are raised about fund accessibility and paper statement fees. Overall, Bank5 Connect is noted for its competitive rates and innovative features.
PROS
CONS
3. Chime- Our best for building your credit
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Building your credit |
| Fee-free overdraft up to $200 | Disable credit or debit cards in the app or online, Two-factor authentication, Fingerprint authentication |
Chime offers standard checking and savings accounts with few frills. If overdrafting is a concern, customers are covered for up to $200 on transactions with a checking account. Additionally, they can receive their direct deposit paycheck up to two days early. Chime has a feature called Save When You Spend, which allows customers to automatically round up transactions to the nearest dollar. The rounded-up amount is moved into an Automatic Savings Account, where it earns 2% APY.
Why we chose Chime: Chime's checking and savings accounts are basic, but its credit-building credit card stands out. Many people with low credit scores or no credit history struggle to open a credit card. Chime's credit card has helped customers increase their FICO score by an average of 30 points.
What customers are saying: Chime gets its praise from customers for its fee-free overdraft protection and early direct deposit feature. However, some users express dissatisfaction with customer service and out-of-network ATM fees. Despite this, Chime remains popular for its credit-building credit card and automatic savings feature.
PROS
CONS
4. Quontic Bank - Our best for high-yield savings
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
High-Yield Savings |
|
| Mastercard Zero Liability Protection for your debit card, Lock/unlock your debit card, ID theft protection |
Quontic Bank aims to provide a community bank feel with the benefits of modern technology. It offers the nation's first Pay Ring, a wearable debit card for use at contactless payment terminals. Quontic also has a presence in the metaverse. Its Decentraland outpost allows tech enthusiasts to learn about products, attend virtual events, and get NFTs (non-fungible tokens). Additionally, Quontic has a few physical locations in New York, Florida, and Arizona for those who also prefer in-person banking.
Why we chose Quontic: We chose to include Quontic in this list because of it being ideal for growing savings quickly. Quontic offers an APY of 4.5% with a low minimum balance requirement of $100, making saving accessible for everyone.
What customers are saying: Quontic gets praised for its its high-yield savings accounts and innovative features like the Pay Ring. However, some express frustration with the limited physical branch availability and customer service. Despite these issues, Quontic stands out for its competitive interest rates and cashback debit card.
PROS
CONS
Read the full Quontic Bank review
5. Western Alliance - Our best for small business banking
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Small business banking |
| Both commercial and small business banking services are available | Fraud protection, Enhanced security for check payments, Tools to prevent electronic fraud in Automated Clearing House (ACH) debit transactions, Secured access to online banking, Secured data transfer |
Western Alliance is one of the few online banks on our list that offers business banking services for both large corporations and small businesses. Unlike many others, you can visit a local branch if needed. Western Alliance has a network of partner banks to provide full-service banking in specific U.S. markets. Western Alliance also offers useful business tools such as payroll cards and merchant services. Additionally, it has specialty checking accounts designed for nonprofits, political campaigns, and Interest on Lawyers Trust Accounts (IOLTA).
Why we chose Western Alliance: Our experience with Western Alliance was notably positive. Western Alliance offers a wide range of options for businesses of all sizes. While there are fees for checking and savings accounts, we appreciated that these fees can be waived if customers maintain a daily minimum balance.
What customers are saying: Western Alliance gets feedback often from customers about being able to link only one external accounts, which may cause issues if you have multiple bank accounts. But, the bank's extensive branch network and tailored business solutions are notable in many reviews. Some customers have found that the interest rates are comparatively low.
PROS
CONS
Read the full Western Alliance review
6. Citi Bank - Our best for its new customer bonuses
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| New customer bonuses |
| Citi Relationship Tiers offers perks and personalized banking based on a combined average monthly balance | 2-step authentication, Security word, PIN & security questions, Authorized users |
While Citi Bank is best known for its many credit cards, it also offers online personal banking services. The more services you access with Citi, the more you can benefit. With its Relationship Tiers, which are based on a combined monthly average range, offer increasing benefits like waived service fees and loan interest discounts.
Why we chose Citi Bank: Citi Bank excels especially if you’re a new customer due to its enticing cash bonuses when customers complete certain tasks. For example, for savings accounts, Citi Bank waives the monthly service fee for three months when certain requirements are met. Additionally, it offers a promotional interest rate for savings balances of $25,000 or more. New checking customers can also earn a $300 cash bonus.
What customers are saying: Citi Bank garners mixed online reviews, with some praising its new customer bonuses and relationship tiers and others expressing dissatisfaction with its customer service and fees. It has to be said that many customers enjoy its easy-to-use mobile app, as well as accessibility to over 65,000 fee-free ATMs.
PROS
CONS
7. Discover Bank - Our best for adding cash to an online account
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Adding Cash to an Online Account |
| Get paid two days early, 60,000+ fee-free ATMs | Fraud protection, Information privacy, Enhanced account verification |
Discover Bank's online banking services offer high-yield savings accounts, no monthly fees, and a range of financial tools. Their user-friendly platform allows for seamless account management, bill payments, and money transfers. Customers also benefit from 24/7 customer support and secure access to their accounts via a robust mobile app. Discover Bank is an excellent option for accessing checking, savings, CDs, credit cards, money market, or retirement accounts, or as a one-stop solution for more than one financial service.
Why we chose Discover Bank: Its high-yield savings APY of 4.3% is quite appealing, especially in an era where savings rates are dwindling. Discover Bank offers 1% cash back on up to $3,000 in monthly purchases. Additionally, we appreciated that you can add cash to a checking account with a contactless debit card at any Walmart in the U.S. at no charge.
What customers are saying: Discover Bank’s varied online reviews note its high-yield savings accounts and cash-back debit cards. Customers greatly enjoy features like Discover’s competitive interest rates and cash-back rewards on purchases.
PROS
CONS
Read the full Discover Bank review
8. PNC Online Banking - Our best for their Virtual Wallet account
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Student checking accounts |
| Student accounts: No monthly service charge for the first 6 years | Enhanced security features including security questions and additional sign-on security |
PNC Online Banking services offer a comprehensive suite of financial tools, including mobile check deposit, real-time account alerts, and customizable budgeting features. Customers can easily manage their accounts, pay bills, and transfer funds through a user-friendly platform. PNC stands out with its student checking accounts and online financial education tools. Additionally, there is no monthly service fee if certain requirements are met, and customers have access to over 60,000 fee-free ATMs.
Why we chose PNC Online Banking: We chose to review PNC Online Banking because it stands out with its dedicated student checking accounts. These accounts have no monthly fees for six years and provide access to financial education tools. Additionally, new customers can earn $100 with qualifying direct deposits of $500 or more to a new Virtual Wallet. This focus on student needs, combined with extensive security measures, makes PNC an excellent choice.
What customers are saying: PNC Online Banking garners mixed online reviews, with some praising its student checking accounts and financial education tools, while others had setbacks with its customer service and account fees. Notable features include its bonuses for new customers and options for high-yield savings accounts.
PROS
CONS
Read the full PNC Online Banking review
9. Alliant Credit Union - Our best for saving for a goal
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Saving for a goal |
| 80,000+ fee-free ATMs | $0 liability on fraudulent charges |
Alliant Credit Union offers a robust online banking experience with high-yield savings accounts, low fees, and competitive loan rates. Members benefit from 24/7 account access through a user-friendly mobile app, free nationwide ATM access, and exceptional customer service. Alliant provides unique services like early direct deposit and no monthly maintenance fees with eStatements. High-Rate Checking offers up to $20 per month in ATM fee rebates, and Teen Checking is available for kids aged 13 to 17. Additionally, savings accounts are offered for kids aged 12 and younger.
Why we chose Alliant Credit Union: Why chose to review Alliant especially for the interest rate that makes opening a savings account at Alliant very appealing. We find that the ability to open up to 19 supplemental savings accounts to save for a specific goal, such as a wedding or a vacation, adds a lot of value to online banking experiences in general.
What customers are saying: There are mixed reviews for Alliant Credit Union. Some customers highlight Alliant’s high-yield savings accounts and options for goal-based savings, while others express dissatisfaction with customer service and administrative oversights. Noteworthy features include the ability to open multiple supplemental savings accounts and offerings for teen checking.
PROS
CONS
Read the full Alliant Credit Union review
10. Varo Bank - Our best for cash advances
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Cash Advances |
| Varo Advance offers cash advance up to $500 when you qualify, 40,000+ fee-free ATMs | Lock debit and credit card and block transactions from the Varo app, Industry-standard, 256-bit AES level encryption |
Most of us have had a time where our paychecks didn’t quite stretch out long enough to cover all our expenses. That’s when a cash advance would have come in handy, right? You don’t often find online banks that offer cash advances, especially at non-exorbitant rates, but Varo does.
Why we chose Varo Bank: Varo Advance fees start at $1.60 for a $20-advance. New customers can quickly qualify for an advance of $250, then, over time, up to $500.
What customers are saying: Varo Bank garners mixed feedback online, with some customers praising its cash advance feature and high annual percentage yield (APY) for savings accounts, while others criticize its customer service and slow deposit processing times. Notable features include Varo Advance, which offers cash advances with low fees and a competitive APY for savings accounts. However, common complaints revolve around difficulties in reaching customer support and delays in deposit availability.
PROS
CONS
Read the full Varo Bank review
11. Capital One - Our best for students
| Best for | Rates and Fees | Features and Options | Safety and Security |
|---|---|---|---|
| Customers located near a Capital One Café |
| Create multiple Performance Savings accounts for financial goals | Card lock in-app,Fraud reporting |
Capital One is renowned for its extensive range of credit cards, but it also excels in personal and business banking services. The 360 Performance Savings account offers an impressive 4.35% APY, while the 360 Checking account also earns interest. With access to over 70,000 fee-free ATMs and the ability to add cash to a 360 Checking account at CVS, Walgreens, or Duane Reade, Capital One provides convenient and rewarding online banking solutions.
Why we chose Capital One: Capital One stands out for integrating unique community spaces with its online banking services. The Capital One Cafés provide a physical extension to their digital offerings, allowing customers to work, relax, and conduct banking transactions in a supportive environment. This blend of online convenience with in-person community engagement sets Capital One apart.
What customers are saying: Capital One receives varied online feedback, with positive remarks on its Capital One Cafés and competitive interest rates for savings accounts. Customers appreciate the convenience of fee-free accounts and the ability to add cash at select locations. However, some criticisms highlight limited branch availability and the absence of multiple account options.
PROS
CONS
Read the full Capital One review
Compare Our Top Online Banks
| API | Minimum balance for API | Fees | ATM Network | |
| SoFi | 4.30% | none | Out-of-network ATM fee (not disclosed) | 55,000+ fee-free ATMs within the Allpoint Network |
| Chime | 2.00% | none | $2.50 out-of-network ATM fee | 60,000+ fee-free ATMs at Walgreens, CVS, 7-Eleven, and Circle K |
| Bank5 Connect | 1.5% | $100 | none | Thousands of SUM Network ATMs (up to $15 per statement cycle reimbursed for out-of-network ATMs) |
| Western Alliance | Business savings 0.05% | $1,000 | Business checking: $16 to $50 per month, but can be waived if requirements are met | Thousands of fee-free ATMs that accept Plus System, Star System, and Interlink, as well as the MoneyPass network |
| Quontic Bank | 4.5% | $100 | $2.75 out-of-network ATM fee | 90,000 fee-free ATMs |
What is online banking?
Online banking allows individuals and businesses to manage their finances via computer or smartphone, providing convenient access to banking services from anywhere with internet access. It includes features like depositing checks, transferring funds, and paying bills, mimicking almost all in-branch services. Some banks have physical locations, while others are exclusively online, which might limit certain services like cash deposits. Despite the 24/7 transaction capability, customer support availability can vary.
The Benefits of Online Banks
The benefits of online banking include:
Convenience: Manage your finances from home, the office, or anywhere with internet access, saving time and hassle.
Flexibility: Conduct transactions 24/7, including transferring funds, paying bills, and checking account balances, without being limited by bank hours.
Accessibility: Use mobile banking apps for on-the-go banking from your smartphone or tablet, ensuring your finances are always at your fingertips.
Security: Benefit from enhanced security measures like encryption and multi-factor authentication to protect your personal and financial information.
How To Choose the Best Online Bank for Your Needs
To choose the best online bank for your needs, align the bank's offerings with your requirements. Consider if you need branch visits or specialized accounts. If physical branches are important, look for online banks with accessible locations or traditional banks offering strong online services. Assess the bank's features, such as mobile app quality, customer support, fees, and interest rates, to ensure they match your financial goals and lifestyle.
How To Open an Online Bank Account
To open an online bank account:
Choose a Bank: Select a bank that offers online banking services.
Visit Website or App: Go to their website or download their mobile app.
Open an Account: Find the option to open an account and follow the prompts.
Provide Information: Enter your name, address, Social Security number, and upload identification documents like a driver's license or passport.
Verification: Once your information is verified, your account will be opened.
While requirements vary, you'll generally need contact information, a Social Security number, and a government-issued ID.
Online Banks vs. Traditional Banks
There are key differences between online banks and traditional banks:
Lower Fees: Online banks often have minimal to no fees. They eliminate charges like monthly maintenance, overdraft, and out-of-network ATM fees, making them cost-effective.
Higher Interest Rates: Online banks frequently offer high annual percentage yields (APYs) on savings and checking accounts, providing better returns on deposits.
Easy Account Setup: Unlike traditional banks, many online banks do not require a minimum balance and have low or no initial deposit requirements, making account opening simple and accessible.
Early Paycheck Access: Some online banks, like Capital One and SoFi, offer direct deposit paychecks up to two days early, providing quicker access to funds.
Digital Convenience: Online banks excel in digital features, such as mobile check deposits and streamlined bill payments, helping users manage their finances efficiently.
Fee-Free ATMs: They often provide extensive networks of fee-free ATMs or offer reimbursements for ATM fees, enhancing accessibility.
Additional Perks: Online banks attract customers with extra benefits, including cash-back debit cards, attractive sign-up bonuses, and in-app tools for savings and budgeting.
These differences highlight the advantages of online banks in terms of cost, convenience, and features compared to traditional banks.
However, online banks do have their drawbacks:
Limited Cash Transactions: Some online banks support cash deposits via ATMs, but many do not accept cash at all. Banks focused solely on savings may not offer ATM access or cash withdrawals, requiring fund transfers to external accounts for access.
Lack of Physical Branches: Except for hybrid models like Capital One, the absence of brick-and-mortar branches means you miss out on in-person banking services.
Fewer Account and Service Options: Online banks usually offer a narrower range of financial services compared to traditional banks. They might only provide basic accounts like checking, savings, and CDs, whereas larger national banks offer a comprehensive suite of banking, lending, and investment options.
While most online banks are legitimate, it's important to watch for red flags indicating a bank might not be well-established or secure. Lack of FDIC or NCUA insurance, unrealistic interest rates and fees, no physical address, and poor website security are all signs of a shady online bank.
Who Are Online Banks Best For?
Online banks are best for tech-savvy users who are comfortable conducting financial transactions online. They are ideal for individuals who prefer the convenience of managing their finances via computer or smartphone without the need to visit a physical branch. Additionally, online banks are well-suited for those who do not rely on in-person banking services, such as regular, large cash deposits. Overall, these banks provide a convenient, flexible, and often cost-effective way to manage finances for those who fit these criteria.
Bottom Line
Online banking offers a convenient, flexible, and cost-effective alternative to traditional banking. With lower fees, higher interest rates, and advanced digital features, online banks are ideal for tech-savvy users who prefer managing their finances from anywhere. Our comprehensive review of the top online banks for 2024 highlights the best options based on APY, fees, and product offerings. By understanding the benefits and potential drawbacks, you can make an informed decision and find the best online bank to meet your needs.
FAQs
What is an online bank?
An online bank operates through a website or mobile application, offering various services. Some have physical locations, while others don't. Services include checking, savings, loans, and credit cards, with some limitations on cash deposits.
How do I open a bank account online?
Opening an online bank account, whether checking or savings, involves providing personal information like your Social Security number, physical address and a government-issued ID like a driver license. Approval times may vary.
How do I deposit and withdraw money with my online bank account?
Deposits can typically be made via mobile check deposit or partner locations for cash deposits. Withdrawals are usually done through approved ATMs using a debit card.
Are online banks safe?
Yes, online banks are generally safe, as they are FDIC insured. However, it's important to research a bank's security measures.
Are online banks FDIC insured?
Yes, online banks are typically FDIC insured, ensuring the safety of deposited funds. Verify a bank's legitimacy before opening an account.
What should I do if I notice unauthorized transactions on my online bank account?
Immediately contact customer service if unauthorized transactions occur. Many online banks offer options to freeze or lock your debit card to prevent further unauthorized use. The bank will investigate and issue a new card if necessary, ensuring you are not held responsible for fraudulent activity.
Explore more from BestMoney Online Banking:
Su Guillory is an experienced business and finance writer now contributing to BestMoney. She’s written several business books and has been published on sites including Forbes, Nav, SoFi, and AllBusiness. She writes about business and personal credit, financial strategies, loans, and credit cards.