26 min Read
By Caitlyn Moorhead
If you think an online bank may be well-suited to handle your personal finances, you’ll be glad to know you can will receive many of the same products and services as traditional brick-and-mortar banks or credit unions. This includes the added benefits of lower fees and higher interest rates due to the lower overhead costs of online banks. As online banking has become a mainstay for deposit account options and transferring money, more financial institutions are providing customers with these services.
To help you decide whether online banking is for you, GOBankingRates has analyzed dozens of online banks across a wide range of factors that include the following:
- Total assets
- Digital banking features
- Checking fees and monthly maintenance fees
- Checking and savings account products
- Money market account APY
- Savings account APY
- 12-month CD APY
- Minimum deposit requirements
- Bauer rating
- Products and services offered
- Average mobile app rating
- Available network of ATMs
Here are GOBankingRates’ Best Online Banks of 2024.
Our Commitment to the Readers
Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so that all are measured equally. You can read more about our editorial guidelines and the banking methodology for the ratings below.
METHODOLOGY
20 Years
Helping You Live Richer
Reviewed by Experts
Trusted by Millions of Readers
Compare the Best Online Banks
Bank
Best For
Products Offered
Savings APY
1-Year CD APY
ATM Network
Learn More
Ally Bank
4.8
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for Overall Banking Experience
Checking, savings, money market, CDs, loans, credit cards, etc.
43,000+
American Express National Bank
4.4
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for No Opening Deposit
Checking, savings, CDs, credit cards, loans, etc.
37,000+
Citizens Access
4.6
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for Savings Products
Savings, CDs, loans, etc.
No ATM access (there’s no checking account)
Discover® Bank
4.7
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for No Fees
Checking, savings, CDs, money market, credit cards, loans, etc.
60,000+
EverBank
4.8
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for High Overall APYs
Checking, savings, CDs, money market, credit cards, loans, etc.
80,000+
LendingClub Bank
4.9
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for High-Interest CDs
Checking, savings, CDs, loans, etc.
40,000+
Marcus by Goldman Sachs
4.6
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for Combining Investing and Banking
Savings, CDs, investing accounts, credit cards, etc.
No ATM access (there’s no checking account)
Salem Five Direct
4.4
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for High Savings APY
Checking, savings, CDs, etc.
55,000+
SoFi
4.9
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for Mobile App and Rewards
Checking, savings, investing accounts, loans, credit cards, insurance, etc.
No CDs offered
55,000+
Synchrony Bank
4.8
GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Best for Savings Products
Savings, CDs, money market, credit cards, loans, etc.
Nearly 70,000 (for money market)
GOBankingRates Best Online Banks
Best for oVERALL bANKING eXPERIENCE
Ally Bank
4.8
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, money market, CDs, loans, credit cards, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE ALLY BANK
Ally Bank was created to be an online-only alternative to brick-and-mortar banks, and that passion for innovation is apparent in customers’ experiences. Even beyond competitive annual percentage yields and guarantees never to be charged maintenance fees, we like the care that Ally Bank puts into making digital banking easy and accessible.
While a lot of banking is done online, a GOBankingRates survey showed Ally Bank outranking competitors in two key areas of customer service: service via live chat with a person as well as 24/7 customer service over the phone.A GOBankingRates survey also found that Ally Bank’s overall digital accessibility set it apart from competitors. Ally Bank ranked first in the quality of its mobile app, which received a high 4.7 rating on the App Store, although it scores worse for Android users with a 3.1 on Google Play.
PROS & CONS
Pros
- No fees or minimums
- High APYs
- Streamlined digital banking process with great customer service
Cons
- Lower app rating for Android users
WHO IT’S BEST FOR
Ally is best for customers who want as close to full service as they can get while online banking; with all the benefits (high APYs, broad range of products) and none of the drawbacks, as Ally provides great customer service and features like mobile check deposit that make digital banking easy.
Best for No Opening Deposit
American Express National Bank, Member FDIC
4.4
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, CDs, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE AMERICAN EXPRESS NATIONAL BANK
American Express is not only a name you can trust with your credit but also with your online banking needs. Its savings account annual percentage yield (APY) is great, and while the CD APYs aren’t off the charts, they remain competitive and above the national average compared to other big financial institutions.
We think this online bank has you conveniently covered for financial products ranging from high-yield savings, CDs and checking accounts. With 24/7 customer service, low minimum deposits and no fees, you can see why American Express National Bank could take care of all of your banking needs.
PROS & CONS
Pros
- No monthly fees
- No minimum opening deposits
- High savings APY
Cons
- Limited product lineup, including no money market
WHO IT’S BEST FOR
Customers who have an American Express® card or plan on getting one may also want to open an American Express bank account, as they have no monthly fees or required opening deposits and high APYs across savings products.
Best for Savings Products
Citizens Access
4.6
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Savings, CDs, loans, etc.
Savings Account APY
1-Year CD APY
5.50%
WHY WE LIKE CITIZENS ACCESS
Ranked among the winners of GOBankingRates’ Best Online Banks of 2024, we like how Citizens Access picks only smart financial products and services, like savings accounts, home loans and student loan refinancing, to fund your best life.
From opening a savings account where you can earn 21 times the national rate to obtaining mortgages with expert guidance, Citizens Access enables you to spend less and save more with the ease of doing it all online within a few minutes to skip long lines at branches. For added peace of mind, Citizens Access uses SSL encryption and 24/7 fraud monitoring to keep your money, and data, secure every second.
PROS & CONS
Pros
- High savings account and CD APYs
- No monthly fees
Cons
- Very limited product lineup with no checking or money market accounts
WHO IT’S BEST FOR
Citizens Access doesn’t offer a checking account, but with high interest rates on both its savings account and CDs, it’s a great option for customers who are interested in a low-risk avenue to building their savings.
Best for No Fees
Discover® Bank, Member FDIC
4.6
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE DISCOVER BANK
Discover Bank is a standout in the Best Online Banks category, offering FDIC insurance, reasonable minimum balance requirements, competitive annual percentage yields and an optimal mobile banking experience.The bank offers an impressive range of products, including a number of bank accounts that are winners in their respective categories — Discover’s checking, CD and money market accounts have all been recognized this year.
Though you might know Discover best for its credit cards, its online bank should not be overlooked. With many products that are standouts in the industry, Discover can be your one-stop shop for all of your banking needs.
PROS & CONS
Pros
- No monthly or overdraft fees
- Competitive APYs
- 24/7 customer service
Cons
- High minimum deposit to open a CD
WHO IT’S BEST FOR
Discover cardholders or those who want to combine incredible credit card perks with their online banking needs look no further. Discover Bank accounts come with no fees, competitive interest rates and world-class customer service.
Best for High Overall APYs
EverBank
4.8
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE EVERBANK
EverBank, formerly TIAA, offers high yields and a wide range of products and services. Although it’s primarily an online bank, it provides in-person services to Florida residents, which can be an added perk if you live in the state.
We think EverBank is an especially strong choice for those looking to open a checking account, CD or money market account — EverBank is a winner in all three categories with its Yield Pledge Checking Account, Yield Pledge Money Market account and CDs that come in a wide range of term lengths.
PROS & CONS
Pros
- High APYs, including on its Yield Pledge Checking
- No monthly fees
- Large ATM network and ATM fee reimbursem*nt
- Branches for FL residents
Cons
- Minimal account variety (only two checking accounts, one savings offered)
WHO IT’S BEST FOR
Customers looking to earn high interest rates across the board should consider EverBank, as it has the highest-APY savings account on this list and competitive interest rates on its checking and CD accounts too.
Best for High-Interest CDs
LendingClub Bank
4.9
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, CDs, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE LENDINGCLUB BANK
Don’t let the name fool you, LendingClub Bank offers more than just loans, but rather a full scope of banking services. We like that you have multiple ways to manage your money online with this financial institution, not to mention competitive yields and minimal fees.
The online banking options are top tier and you’ll always have convenient access to your money through a nationwide ATM network. No matter if you are looking for a CD, checking account or even an auto loan, LendingClub Bank has you covered.
PROS & CONS
Pros
- Competitive APYs, especially on CDs
- Interest checking
- Large ATM network through MoneyPass and ATM fee reimbursem*nt
- No monthly service fees
Cons
- Mobile app is not highly rated
- Minimal account variety
WHO IT’S BEST FOR
LendingClub’s entire suite of products is appealing, but customers who are interested in CDs will like that the bank has impressively high short-term CD rates and still-competitive long-term rates, too.
Best for Combining Investing and Banking
Marcus by Goldman Sachs, Member FDIC
4.6
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Savings, CDs, investing accounts, credit cards, etc.
Savings APY
as of Mar. 8, 2024
1-Year CD APY
as of Mar. 8, 2024
WHY WE LIKE MARCUS BY GOLDMAN SACHS
Marcus by Goldman Sachs has grown beyond its original investment banking roots over the past few years. It boasts multiple CD options, credit cards, automated investing services and high-yield savings accounts with no fees in sight.
It’s an online bank so you won’t have the traditional branches or ATMs at your disposal, but the products and services it does offer are often a step above its leading competitors. Keep in mind that Marcus by Goldman Sachs does not have a checking account option, but we highly recommend its CDs and other savings products.
PROS & CONS
Pros
- No fees or minimum deposits
- Access to investing products and services
- 24/7 customer service
Cons
- No checking account option
- APYs are not as high as some competitors
WHO IT’S BEST FOR
For the investing-focused savers, Marcus by Goldman Sachs is a great option to conveniently bank and invest in one place (while earning great interest rates on your low-risk savings products).
Best for High Savings APY
Salem Five Direct
4.4
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, CDs, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE SALEM FIVE DIRECT
We picked Salem Five Direct as a great online bank for people who don’t want to keep a minimum balance or to pay monthly fees and who want to earn a good yield on their savings. People with variable income or who just want the flexibility of moving money in and out of their accounts will benefit from its variety of products and services.
Salem Five Direct offers eOne Checking and eOne Savings accounts with no minimum balance, no fees and you can open an account for just $10. Not only will you never pay ATM fees, but Salem Five Direct will reimburse you up to $15 per month on other banks’ ATM fees, a real win. However, take note, you are only eligible for the eOne Checking if you don’t have an existing checking with them at the time of application.
PROS & CONS
Pros
- Very high savings APY with any balance
- No limit on savings transactions
- ATM fee reimbursem*nts
Cons
- Deposit products only
- It does pay interest on checking, but the rate is so low it doesn’t really make a difference
WHO IT’S BEST FOR
Salem Five Direct is great for customers who want to earn one of the best savings APYs in banking, regardless of their account balances. With no limit on transactions, its savings account is also incredibly liquid so you won’t have to worry about being able to access your funds.
Best for Mobile App and Rewards
SoFi
4.9
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Checking, savings, investing accounts, loans, credit cards, insurance, etc.
Savings Account APY
1-Year CD APY
No CDs offered
WHY WE LIKE SOFI
We think SoFi is an excellent online bank for people who want to put all of their financial eggs into one bank. It offers a wide variety of financial products and services beyond checking and savings, including loans, credit cards, insurance and investing options.Its mobile app is rated well on both the Apple Store and Google Play and customers can earn rewards for using it.
SoFi really makes it easy to consolidate your financial needs. It doesn’t leave people to figure all this out on their own, either, but offers free appointments with SoFi financial planners or you can use the robo-advisor. Ultimately, SoFi is a one-stop shop for banking that rewards its customers for doing so.
PROS & CONS
Pros
- Highly rated mobile app with a rewards system
- High interest on checking and savings
- No fees or minimum balance requirements
- Access to investing products and services
Cons
- Not much account variety (there is only one combined checking and savings account, for example)
WHO IT’S BEST FOR
Banking with SoFi comes with a lot of perks, including a combined checking and savings account that earns competitive rates and an app that rewards you for using it. Customers who like feeling valued and having access to a wide range of financial services should consider SoFi.
Best for Savings products
Synchrony Bank
4.8
ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.
Products Offered
Savings, CDs, money market, credit cards, loans, etc.
Savings Account APY
1-Year CD APY
WHY WE LIKE SYNCHRONY BANK
What sets Synchrony apart is its high yield rates on savings and money market accounts. For people comfortable with online banking, it’s a great way to grow your money fast.
Though Synchrony doesn’t offer a lot of financial products — for example, only one savings account and one money market account — the high yield on these makes up for the limit. And as an online bank, there are no physical branches, so you’ll need to be up to date on the mobile app or website, but there’s 24-hour customer service and live chat available.
PROS & CONS
Pros
- High APYs on savings and CDs
- No monthly fees or minimum deposit
- Highly rated mobile app
Cons
- No checking account
- Limited variety of the accounts that it does offer
WHO IT’S BEST FOR
Synchrony Bank is a no-frills online banking institution with a focus on savings products. Customers most interested in a straightforward, easy banking experience that comes with high interest rates should look at Synchrony.
Research Methodology
To determine rankings, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) Bauer rating (out of 5 stars); (6) products/services offered (auto loans, mortgage loans, credit cards, investment services, and insurance); and (7) the average mobile app rating between the Google Play (Android) and Apple stores. Factors (1) and (2) weighed 0.5 times, and factors (3) and (7) weighed 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed. All data is up to date as of Mar. 8, 2024, rates and fees are subject to change.
What To Know About Online Banking
Online banking allows a bank’s customers to conduct a wide range of financial transactions virtually. These transactions may be done using an online bank’s website on your computer, laptop or a mobile app.
How Online Banks Work
While the types of banking products and services will vary depending on the specific institution, online banking allows customers to conduct most types of transactions online or through a mobile app. Some common online banking transactions include opening accounts, paying bills, depositing checks, viewing statements and transferring funds.
Online Banking Fees
Typically, online banks do not charge the same high fees as traditional brick-and-mortar banks. You may open a bank account with an online bank that does not charge certain fees. You might not be required to pay monthly fees, minimum balance fees, person-to-person transfer fees, overdraft fees, foreign transaction fees or ATM fees, depending on the online-only bank.
Pros and Cons of Online Banking
Considering the pros and cons of online banking can be a helpful first step in deciding if it is right for you. But, as GOBankingRates found, with over 31% of 25- to 34-year-olds largely using online banking almost exclusively it might even be more imperative that you find a place to call your banking home.
Pros
- Convenience: Once you log in, you can manage your accounts, check your balance, pay bills, view statements and more. Online banking may be done anywhere in the world and right at your fingertips.
- Automation: Use automatic features like scheduling bill payments for on-time payments and automate savings to grow your money faster. This could be especially helpful if you’re one one of the 60% who keep $500 or less in checking or the 40% who keep $500 or less in savings, in a survey done by GOBankingRates.
- Bank securely: If you misplace or lose your debit card, log into your online bank account to deactivate the card to ensure no further purchases are made. Securely manage your money and monitor your account from fraud anywhere.
- ATM access: Depending on your online banking institution, you may be able to withdraw cash through ATMs accessible by your online bank.
- Additional features: Many online banks help provide a clear picture of your finances using spending, budgeting and other financial monitoring tools.
Cons
- ATM fees: If your online bank is part of a small ATM network, or does not have an ATM network, there is more likelihood you’ll incur fees when making withdrawals.
- Cashless: Unless your online bank is linked to ATMs that accept cash, there will be no way for you to make cash deposits.
- Long check processing: Online or mobile app check deposits can often take longer to process.
How To Choose an Online Bank
It can be hard to know which online-only bank is best for you and your needs. Here are some factors to consider, as well as some suggestions to guide you toward the best online bank for you.
- Check the fees: Banks will promote their free accounts but look to determine whether there are additional fees for services you typically will use, such as check writing or ATM withdrawals.
- Compare to other banking options: Online banking is increasingly becoming more the norm, however, if you are someone who needs to make a lot of cash deposits or prefers personal assistance, in-person banking may be a better fit for you.
- Read the fine print: Read the details as some rates or fees might be promotional.
- Check the APY: Always check the APY to make sure it applies to the products you’re interested in now or might be in the future.
- Check the website and app: Great rates and low fees are important, but if you can’t understand or don’t like an online bank’s user interface, you might not enjoy the experience over the long run, especially since there are no in-branch options.
- FDIC insurance: All banks on this list have FDIC insurance, and indeed, most banks do. Always check to make sure you understand your financial institution’s FDIC insurance policies.
Alternatives to Online Banks
If you have been on the fence about trying an online bank, here is how they compare to other banking options and services.
- In-person banking: If you travel a lot, have a range of financial needs or need to consistently deposit or withdraw cash, in-person banking may be preferred.
- Traditional banks: These standard brick-and-mortar banks often have more products available such as a Roth IRA or even stock options.
- Credit unions: These often offer higher rates and lower fees than traditional banks, but can be on par with online banks. However, credit unions tend to offer more personable and community-forward service.
How To Open an Online Bank Account
As the whole point of online banking is to not have to go in person to a physical branch, it should be no surprise that opening these bank accounts is all done online. Here are some steps to take so you can open your online bank account today:
- Decide which online bank to go with.
- Go to the bank’s website.
- Choose the type of account you want.
- Fill out an application.
- Have your personal information ready such as name, address, birthday and Social Security number.
- Have two forms of government-issued identification ready such as a driver’s license or passport.
- Once your application has been approved, you can fund the account with your first deposit.
Recap of Winners
- Ally Bank – Best for Overall Banking Experience
- American Express National Bank – Best for No Opening Deposit
- Citizens Access – Best for Savings Products
- Discover Bank – Best for No Fees
- EverBank – Best for High Overall APYs
- LendingClub Bank – Best for High-Interest CDs
- Marcus by Goldman Sachs – Best for Combining Investing and Banking
- Salem Five Direct – Best for High Savings APY
- SoFi – Best for Mobile App and Rewards
- Synchrony Bank – Best for Savings Products
FAQ
Although the basic idea behind an online bank can be simple to understand, there are still many common questions surrounding this form of banking. Here are the answers to some of the most frequently asked questions regarding online banks.
- What is the most trusted online bank?
- GOBankingRates has ranked the following among the most trusted and Best Online Banks for 2024:
- Ally Bank
- American Express National Bank
- Citizens Access
- Discover Bank
- EverBank
- LendingClub Bank
- Marcus by Goldman Sachs
- Salem Five Direct
- SoFi
- Synchrony Bank
- GOBankingRates has ranked the following among the most trusted and Best Online Banks for 2024:
- Are online banks safe?
- Yes, online banks are safe because most of them have FDIC insurance. This means your money stays safe if a bank fails or goes out of business. However, be cautious of hacking, phishing, identity theft and any other nefarious ways that scammers use to gain access to your info.
- Are online banks FDIC-insured?
- Yes, though it is always best to double-check before opening an account, any major online bank will be FDIC-insured which means your account will be covered for the full amount typically up to $250,000.
- Do online banks have ATMs?
- Though this does vary from bank to bank, typically yes online banks have ATMs as they offer many of the same features as brick-and-mortar banks. However, with online banks, it is more likely that it will be a small ATM network, so be aware of when you are out of network as you may incur fees.
- How do I deposit and withdraw money with my online bank account?
- Depositing cash into online banks is tricky as the bank must be linked to ATMs that allow cash deposits. If you are someone who works with a lot of cash, be sure to check that your online bank has this option otherwise depositing cash will be problematic. However, there are many ways to deposit or withdraw money from an online bank account such as a debit card, ATM transaction, account transfer or wire transfer.
