Best Online Banks of January 2024

August 04, 2024

Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

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 interest rates and no monthly fees.

Best Online Banks of January

Unlike brick-and-mortar banks, online banks may not even have physical locations, but they offer all the standard benefits like savings tools and even early direct deposit.

Best Online Bank Reviews

Below, you'll find our best online banking picks right now. 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 US, 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, 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

Many brick-and-mortar banks allow you to bank online — but with online banking, you bank primarily or exclusively online. Some online banks do have a couple physical locations, but they still operate digitally for the most part.

Because online banks don't have to pay for physical branch locations, they typically pay higher rates and charge fewer fees. This means you can earn more and spend less with your bank.

Ally is definitely one of the best online banks, but "best" depends on exactly what you're looking for. If you want a wide range of bank account options, high savings rates, savings tools, and 24/7 customer support, Ally is a great online bank for you.

Online bank accounts are worthwhile if you're searching for a high interest rates on savings accounts or bank accounts with minimal fees. You'll have to be comfortable with an online banking experience, though.

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 has been involved in a recent public controversy.

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.

Best Online Banks Offer Comparison

Ally Spending Account

Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.75/5

Fees

no monthly service fee

Annual Percentage Yield (APY)

0.10% to 0.25%

Minimum Deposit Amount

Pros

Check mark icon A check mark. It indicates a confirmation of your intended interaction. Spending buckets to manage expenses
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No initial deposit
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum account balance
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service charge
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Connect your account with Zelle
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Reimburses up to $10/month in out-of-network ATM fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Online bill pay
Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection

Cons

con icon Two crossed lines that form an 'X'. No physical branch locations
con icon Two crossed lines that form an 'X'. No way to deposit cash

Product Details

You can deposit checks right from your smartphone
Manage expenses by creating spending buckets
Ally reimburse's up to $10 per statement cycle for fees charged at other ATMs nationwide
Transfer money with your voice through Ally Skill™ for Amazon Alexa
Interest compounded daily, paid monthly
FDIC insured

Capital One 360 Checking

Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.5/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks

No minimums, no fees, no worries.

Fees

no monthly service fee

Annual Percentage Yield (APY)

0.10%

Minimum Deposit Amount

Pros

Check mark icon A check mark. It indicates a confirmation of your intended interaction. 0.10% APY on all account balances
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit or minimum account balance
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No foreign transaction fee
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Range of overdraft protection options
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Processes direct deposits up to 2 days early

Cons

con icon Two crossed lines that form an 'X'. Doesn't reimburse out-of-network ATM fees
con icon Two crossed lines that form an 'X'. Limited access to customer service by phone

Product Details

Over 70,000 free ATMs nationwide
Branches in NY, LA, TX, MD, VA, NJ, and Washington, DC
Interest compounded daily, paid monthly
FDIC insured

Discover® Cashback Debit Account

Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.25/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks

Earn cash back rewards with no fees. Start earning 1% cash back today (see website for details).

Fees

no monthly service fee

Annual Percentage Yield (APY)

None

Minimum Deposit Amount

Pros

Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to 1% cash back on up to $3,000 in purchases per month
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Over 60,000 in-network ATMs
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Enroll in free overdraft protection

Cons

con icon Two crossed lines that form an 'X'. Debit card can only be used in the US, Canada, Mexico, and the Caribbean
con icon Two crossed lines that form an 'X'. Only 1 branch location

Insider’s Take

Discover is a strong online bank. However, if you'd prefer to open a CD or money market account with a low minimum opening deposit, you might consider other options.

Product Details

Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases
100% US-based customer service available 24/7
No opening deposit or minimum account balance
No monthly maintenance fees
Over 60,000 in-network ATMs
FDIC insured

Axos Bank Rewards Checking

Earn up to a $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

Fees

no monthly service fee

Annual Percentage Yield (APY)

up to 3.30%

Minimum Deposit Amount

$50

up to $300

Pros

Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited out-of-network ATM reimbursements
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly maintenance fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No non-sufficient funds fees

Cons

con icon Two crossed lines that form an 'X'. $50 opening deposit
con icon Two crossed lines that form an 'X'. No APY if you can't meet qualifications
con icon Two crossed lines that form an 'X'. Few mobile app reviews

Product Details

Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
Zero monthly maintenance fees
Zero overdraft or NSF fees
Zero minimum monthly balance reqs
Unlimited domestic ATM fee reimbursements
Online debit card management
Simple, 3-step process for direct deposit
Only $50 to open an account

SoFi Checking and Savings

Earn up to a $300 bonus with qualifying direct deposits for eligible customers through 6/30/24. Earn up to 4.60% APY on savings balances (including Vaults) with direct deposit

Fees

no monthly service fee

Annual Percentage Yield (APY)

up to 4.60%

Minimum Deposit Amount

up to $300

Pros

Check mark icon A check mark. It indicates a confirmation of your intended interaction. FDIC insured for $2 million
Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn a higher interest rate with qualifying activities
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Up to $300 bonus with qualifying direct deposit (terms apply)
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to 15% cash back at local retailers if you use a SoFi debit card
Check mark icon A check mark. It indicates a confirmation of your intended interaction. No-fee overdraft coverage if you overdraw up to $50
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Savings tools
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
Check mark icon A check mark. It indicates a confirmation of your intended interaction. Joint account available

Cons

con icon Two crossed lines that form an 'X'. Declined purchase if you overdraw by more than $50
con icon Two crossed lines that form an 'X'. Doesn't reimburse out-of-network ATM providers' fees
con icon Two crossed lines that form an 'X'. May deposit cash at Green Dot locations but there's a $4.95 fee

Product Details

FDIC insured for $2 million
Free access to 50,000+ Allpoint ATMs worldwide
Hybrid checking/savings account
Earn up to 15% cash back on local retailers when you use a SoFi debit card; Retailer information is available through online banking
Earn 4.60% APY on savings balances (Vaults included) and 0.50% APY on checking balances if you set up direct deposit or deposit minimum $5,000 per month
Earn 1.20% APY on SoFi Checking and Savings if you don't have qualifying activities
Earn up to $300 cash bonus available through June 30, 2024; receive a $50 bonus if you make a direct deposit between $1,000 and $4,999 in the first 30 days of opening an account; receive a $300 bonus if you make a direct deposit of $5,000 or more in the first 30 days of opening an account
Create up to 20 Money Vaults to save for individual savings goals like an emergency fund or vacation
$4.95 fee each time you deposit cash at a Green Dot location
To get no-fee overdraft coverage you must have at least $1,000 in direct deposits

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:

Business Insider

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 at SaverLife:

"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, certified educator in personal finance, banking reporter, Personal Finance 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

Personal Finance Insider's mission is 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 Reporter

Evelyn He

Compliance Associate

Evelyn He is a compliance 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 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

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