Which online bank is the best?
We chose Quontic Bank as one of the best online banks because it offers top APYs on all its accounts: 1.10% APY APY on its Quontic Bank High Interest Checking account, 4.50% APY on its Quontic Bank High Yield Savings account, 5.00% APY on its Quontic Bank Money Market Account and 4.30% to 5.05% APY on its Quontic Bank ...
| Institution | Top savings APY | Top checking APY |
|---|---|---|
| Ally Bank | 4.25% | 0.25% |
| Laurel Road | 5.00% | 0.01% |
| Everbank | 5.15% | 0.45% |
| Capital One | 4.35% | 0.10% |
We chose Quontic Bank as one of the best online banks because it offers top APYs on all its accounts: 1.10% APY APY on its Quontic Bank High Interest Checking account, 4.50% APY on its Quontic Bank High Yield Savings account, 5.00% APY on its Quontic Bank Money Market Account and 4.30% to 5.05% APY on its Quontic Bank ...
- ICICI Bank. ICICI Bank is one of the best Banks in terms of Net Banking through which you can transfer your funds anytime, pay bills, insurance, and many other services. .
- HDFC Bank. .
- City Union Bank. .
- Union Bank of India. .
- Kotak Mahindra Bank.
Discover, Varo, Ally, Axos and SoFi are some of the many banks that have totally free checking accounts, meaning they don't charge a monthly fee or require a minimum balance.
Our picks for the best online banks are SoFi Bank, Discover Bank, Ally Bank, Varo Bank, LendingClub, Upgrade, Alliant Credit Union, FNBO Direct, Zynlo Bank and Quorum Federal Credit Union. You may get a higher annual percentage yield (APY) compared to traditional banks when you choose an online-only bank.
- Key takeaways.
- What are the easiest bank accounts to open online?
- Discover: Best for getting cash back on purchases.
- SoFi Checking and Savings: Best for high APY.
- U.S. Bank: Best mobile app.
- Truist: Best for no overdraft fees.
- Bank of America: Best for flexible banking.
- Chime®: Best for bad credit.
First and foremost, the bank should be FDIC-insured (NCUA-insured for credit unions), so your deposits will be protected if the bank or credit union fails. You should also make sure the online bank has competitive rates, low fees and an expansive ATM network if accessing cash is important to you.
Online banks typically offer more competitive annual percentage yields (APYs) on deposit accounts than brick-and-mortar competitors. This is another perk of not having to maintain a costly branch network. According to FDIC data, the average national deposit rate for a savings account in August 2023 is 0.43%.
While the upsides of using an online bank often include higher rates and fewer bank fees, a potential downside can be the lack of branches. If you're a person who prefers being able to do your banking in person at a branch, it's probably best to stick with a bank that can accommodate that.
Which bank is the most user friendly?
| Bank | J.D. Power Satisfaction Rating |
|---|---|
| Bank of America | 689 (tied for first in South Central Region) |
| Capital One | 716 (1 point above the industry average) |
| Charles Schwab | 732 (17 points above the industry average) |
| Chase | First in 3 of 15 geographic regions |
- State Bank of India (SBI) The State Bank of India (SBI) is India's largest public sector bank providing an extensive range of banking services. ...
- HDFC Bank. ...
- ICICI Bank. ...
- Punjab National Bank. ...
- Bank of Baroda (BoB) ...
- Axis Bank. ...
- Canara Bank. ...
- Union Bank of India.
If they're FDIC-insured, online banks are as safe as traditional brick-and-mortar banks in many ways. You can also take steps as a consumer to ensure your account is as protected as possible when banking online, whether you bank with a brick-and-mortar or an online bank, also called a direct or digital bank.
Cons of online banks
You can't deposit cash unless the bank is linked to ATMs that accept cash. The number of products tends to be more limited at online banks. Some only offer a few types of accounts.
| Institution | Bonus | See details |
|---|---|---|
| Axos Bank | $300 | View offer |
| Citi | $300 | Learn more |
| Chase | $300 | Learn more |
| Wells Fargo | $300 | Learn more |
The biggest risk of online banks is that someone will access your savings or checking account and steal your information and money. This typically happens when your account is hacked by cybercriminals who get your username and password. However, these risks are not limited to banks that operate exclusively online.
| Bank | Forbes Advisor Rating | Products |
|---|---|---|
| Chase Bank | 5.0 | Checking, Savings, CDs |
| Bank of America | 4.2 | Checking, Savings, CDs |
| Wells Fargo Bank | 4.0 | Savings, checking, money market accounts, CDs |
| Citi® | 4.0 | Checking, savings, CDs |
Is Chase Bank FDIC insured? Yes, all Chase bank accounts are FDIC insured (FDIC# 628) up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
Varo believes that everyone deserves access to secure, reliable banking. That's why we offer checking and savings accounts with zero minimum balance requirements and no initial deposits. We're on a mission to bring better banking for everyone. Get started today and open an account.
Open a TD Checking Account online in minutes—it's easy and secure. With accounts built for every stage of life, you'll get free Online Banking, Mobile Banking, no fees at TD ATMs, plus overdraft options to help you avoid fees.
Do banks check your credit when opening an account?
You don't need a credit score to open a bank account because banks don't check your credit when you apply for an account. Instead, they'll take a look at your ChexSystems report, which contains information about your banking history. Here's what to know before applying for a new bank account.
Here's why Dave Ramsey likes neobanks
As Ramsey explains, many of these accounts charge no monthly maintenance fees, unlike more traditional banks that usually impose this added cost unless you meet certain requirements such as maintaining a set minimum balance.
Bottom line
Though it may look a bit different than opening an account at a branch, setting up an online bank account can make banking much more convenient and have financial benefits, too. You'll have access to much higher APYs, and often, an online bank account may have lower or no monthly fees.
Due to the open nature of the Internet, all web-based services such as YAB's Online Banking are inherently subject to risks such as online theft of your User ID/UserName, Password, virus attacks, hacking, unauthorized access and fraudulent transactions.
- Customer service lacks personal touch.
- Not an option for those lacking access to the internet.
- ATM options may be limited.
- Greater due diligence required to vet the bank.
