17 Best Digital Banks of 2023

Banking

Gone are the days when you have to leave your home and drive to a local branch to deposit a check or pay a bill. Thanks to digital banking, you can perform just about any banking task from anywhere with internet connection.

You may avoid the time and hassle that’s typically associated with traditional banking.

There is no shortage of online banks on the market. While this is a plus, it can also make it very difficult to find a digital bank that checks off all your boxes.

To make the process easier, we’ve compiled this list of the best digital banks for 2023. After the list, we’ll discuss what digital banks are and how you can choose the ideal online bank for your unique situation.

Keep in mind that this is not an exclusive list and you’ll have to do your own research to find more great options.

Best Digital Banks For 2023

1. Chime

Chime is a neobank and fintech company that doesn’t charge any fees, including monthly fees, overdraft fees and minimum balance fees. The only fee you might have to pay is an out-of-network ATM fee.

You can easily avoid ATM fees as Chime has a broad ATM network with over 60,000 ATMs nationwide. If you opt for a Chime checking account, you’ll get a Visa debit card and won’t have to pay a replacement fee if you lose.

There’s also the SpotMe feature, which allows for fee-free overdrafts. Plus you can round up your debit purchases and transfer them into the Chime high yield saving account to meet (or even exceed) your savings goals. Last but not least, Chime offers early direct deposits and an intuitive mobile app you can use on your iOS or Android device.

Learn more: Chime Bank Review

2. Axos Bank

Axos Bank was founded in 2000. At the time, it was known as Bank of Internet USA. In 2018, it was renamed to Axos. Today, Axos offers a variety of banking products and loans as well as investment portfolios and commercial banking solutions. The online bank prides itself on no monthly fees or minimum balances.

But you will need an initial deposit to open an account and might get charged for wire transfers and other actions. If you become an Axos customer, you can also enjoy high APYs and unlimited ATM fee reimbursements when you use out-of-network ATMs.

In fact, the Axos Rewards Checking account earns up to 1.25% APY and comes with a $100 sign-up bonus.

Axos also offers a highly rated mobile app and 24/7 customer service via phone and online messaging in addition to a live chat you can use during regular business hours.

Learn more: Axos Bank Review

3. Current

Current is a financial technology or fintech company with no hidden fees or monthly fees on its standard account and teen account. In addition to no minimum balance requirements, Current doesn’t charge overdraft fees or money transfer fees.

Additionally, you can withdraw cash at more than 40,000 Allpoint ATMs. If you use your Current debit card at a participating retailer, you can earn points that are redeemable for cash or various items in the Current Shop.

We can’t forget the instant cash deposit feature you can use to deposit cash at over 60,000 popular stores, like Walmart and CVS.

Learn more: Current Review

4. Quontic Bank

Headquartered in New York, Quontic Bank is a digital bank with three unique checking accounts: the high interest account, cash rewards account, and Bitcoin rewards account. Plus it offers high rates on its savings account and CDs. You can open a savings account for as little as $100.

Quontic is an innovative digital bank because it’s a government-designated Community Development Financial Institution (CDFI). It offers lending services you might not be able to find elsewhere.

Its lineup of checking accounts include the Bitcoin Rewards Checking, High-Interest Checking, High Yield Savings, and Cash Rewards Checking.

With the one-of-a-kind Bitcoin Rewards Checking account, you can earn Bitcoin on all eligible debit card purchases. Plus, the high-yield checking account comes with a 1.10% APY.

You may also save money with its money market account or certificate of deposit (CD). Recently, the online bank got rid of a handful of fees, including overdraft fees and domestic wire fees.

With Quontic, you’ll get access to tens of thousands of free ATMs across the country and won’t have to pay a monthly fee or overdraft fee. You can also transfer money with ease via Zelle, Apple Pay, Google Pay, and Samsung Pay.

5. CIT Bank

CIT Bank, N.A. is part of First Citizens BancShares, Inc. and offers some of the most competitive interest rates in the banking industry. Its eChecking accounts come with a $100 minimum opening deposit plus a free debit card.

A two-tiered savings account, money market accounts, and CDs are available as well. If you become a CIT Bank customer, you can enjoy numerous perks, like no monthly fees, mobile check deposit capabilities, and a robust mobile app you can access 24/7.

6. Revolut

Revolut made its debut in 2015 as a digital travel card. Over time, it’s evolved as a challenge bank or digital bank that challenges traditional banks and credit unions. You can choose from four checking accounts as well as one interest checking account for children. All accounts come with linked debit cards you can use abroad.

If you travel to different countries, you’ll be pleased to learn that Revolut will use the real-time exchange rate to convert your money into the appropriate currency right away.

Other noteworthy perks include early paycheck access, savings vaults, which earn interest and bonus money. Revolut also offers travel rewards, no foreign transaction fees, and the ability to invest in cryptocurrency.

7. Varo Bank

Varo Bank is an online bank with its one bank charter. With Varo, you can opt for a fee-free checking account that comes with a Visa debit card. Even though it doesn’t pay interest, it does allow you to receive direct deposits up to two days early. Varo also offers a savings account with competitive interest rates.

In fact, these are some of the highest APYs we’ve seen in the digital banking industry. The only drawback is that you must open a Varo checking account to take advantage of its savings account. If you’re looking for a basic, no-frills online checking account and online savings account, high interest rates, or an account that doesn’t charge monthly fees, a Varo bank account should be on your radar.

8. Bluevine

For digital business banking, Bluevine is a solid choice. Even though the online bank only offers one checking account option for its business customers, the Bluevine Business Checking account, its APY is impressive.

You can take advantage of this bank account online as long as you spend a certain amount each month with your Bluevine Business Debit Mastercard. The other option is to collect enough customer payments via wire transfer, ACH, mobile check deposit, or your merchant payment processing provider.

In addition to the Bluevine Business Checking account, there’s the business line of credit which can help you fund various business-related expenses up to $250,000. You may withdraw funds as much or as little as you need to, up to as set credit limit. You’ll only pay interest on the amount you borrow, rather than the entire amount you’re approved for.

9. Ally

Ally Bank is a full-service online bank that’s been around since 2019. Compared to other digital banks, it offers an impressive selection of accounts. You can count on Ally for a checking account, high-yield savings account, certificate of deposit (CD), and money market account.

The bank also provides loans, including mortgages and auto loans as well as investing services such as robo advising and wealth management.

With Ally, you don’t have to maintain a minimum balance or worry about monthly maintenance fees.

It’s part of the Allpoint ATM network so you can enjoy free access to over 43,000 Allpoint ATMs throughout the U.S. If you do use an out-of-network ATM to withdraw money and get charged a fee, Ally will reimburse you up to $10 per month.

10. SoFi

SoFi is a financial services company and brokerage that operates online. Its flagship banking product is the Checking and Savings account. While this is a combined account, your money will earn different APYs based on where you park it within the account, as long as you set up direct deposit. Without direct deposit, you can expect a flat APY on all balances.

In addition, SoFi provides two days early direct deposits and doesn’t charge monthly maintenance fees or overdraft fees.

The online bank’s product lineup goes beyond banking services. It includes private student loans, student loan refinancing, personal loans, mortgage loans, investing products, credit cards, and insurance.

As a SoFi customer, you can enjoy member benefits, such as complimentary career coaching, invites to happy hours and other events in your local area, and discounts on estate planning.

11. Discover Bank

When most people think of Discover, credit cards usually come to mind first. While Discover is known for its credit card products, its checking account earns impressive cash back rewards and offers access to a large ATM network.

In addition to the Discover checking account, you can opt for a high-yield savings account, money market account, and CD with terms ranging from three months to 10 years.

If you prefer a mobile banking experience, you can get it with the highly rated Discover app. It’s available on the Apple App Store and Google Play Store. Customer service is also available 24/7, even on major holidays.

12. iGObanking

The online division of New York-based Flushing Bank, iGObanking provides several banking products to accommodate various needs. You can open the iGOchecking with only $1 and don’t have to worry about monthly maintenance fees or minimum balance requirements.

Since it’s a part of the Allpoint ATM network, you can make fee-free withdrawals at more than 40,000 ATMs nationwide.

There’s also the iGOsavings which doesn’t require an opening balance and yields flat APY on all balances. Other iGObanking you might want to explore include the iGOmoneymarket, iGOcd, and iGOira. You can also take advantage of P2P Payments, which makes it easy to transfer funds from your account to third-party recipients.

13. Vio Bank

Vio Bank is the online division of MidFirst Bank. With the Vio Bank High Yield Online Savings, which requires a minimum deposit of $100, you can enjoy a competitive APY across balances.

Vio’s High Yield Online CDs offer various term lengths, ranging from six months to 10 years. Even though there’s a $500 minimum CD deposit requirement, there aren’t any monthly fees.

If you like to bank on the go, you can download the bank’s mobile app, which offers features like statement access, mobile check deposit, and account alerts. While you won’t find a lot of banking products at Vio Bank and the app is relatively basic, its high APYs and low minimums make it a solid pick.

14. Bread Savings

Formerly Comenity Direct, Bread Savings is an online-only bank with a high-yield savings account and certificates of deposit with terms ranging from one to five years. At this time, there are no checking accounts or ATM networks. Bread’s credit card offerings, however, include the Bed Bath & Beyond® Mastercard® Credit Card, David’s Bridal Credit Card, and the IKEA® Projekt Credit Card.

If you prefer a card that isn’t co branded, you can opt for the Bread Cashback™ American Express® Card, which offers unlimited 2% cash back on all purchases. For great interest rates and a straightforward banking experience, Bread Savings can be a good choice.

15. NBKC Bank

While NBKC Bank is a full-service community bank with a few physical branch locations in Kansas and Missouri, its primary business is performed online. NBKC Bank provides checking accounts, savings accounts, money market accounts, and CDs with competitive rates.

Its money market accounts come with debit cards and paper checks while its CDs allow you to add money after you open them.

NBKC Bank’s most popular product, the NBKC Everything Account is a hybrid checking and savings account. It pays a solid, flat rate on your entire balance. It also lets you set up various savings goals and track your progress.

16. Barclays

Barclays is a financial service company that serves U.S. customers with a few online deposit products. With a Barclays online savings account, you can expect a high annual percentage yield.

Additionally, there’s no minimum deposit requirement and you don’t have to pay monthly service fees. Barclays also offers CDs with terms ranging from three months to five years and co-branded credit cards with cash back and other rewards.

At this time, the digital bank does not provide online checking accounts. You can download the mobile app to manage your financial accounts and credit cards round-the-clock.

17. Synchrony Bank

Synchrony Bank is a subsidiary of Synchrony Financial, which was formerly GE Capital Retail Bank. This established online bank offers a high yield savings account with no minimum balance requirement.

Synchrony also offers a money market account that lets you write checks, and CDs with terms between three months to five months with no minimum deposit. While checking accounts are not available, you can invest with the Synchrony individual retirement account or IRA.

The bank’s perks program provides various reward tiers based on how much money you’ve deposited and how long you’ve been a customer. All tiers offer discounts and special perks on travel and leisure.

woman on smartphone

What is a digital bank?

Also known as an online bank, a digital bank is one that operates mostly or entirely online. Unlike traditional financial institutions with brick-and-mortar locations, digital banks let you handle all of your financial services virtually.

Whether your goal is to transfer funds from your savings account to your checking, check your account balance, or anything in between, there’s a good chance you can accomplish it through digital banking. Compared to a traditional bank, an online bank has less overhead expenses and can therefore pass the savings on to you through minimal to no fees.

Pros and Cons of Online Banks

Just like all financial solutions, digital banks come with benefits and drawbacks that you should consider before you ditch your accounts at a traditional bank.

Pros

  • Fewer fees: Online banks typically don’t have to maintain physical branches. This enables them to offer banking products with low or even no fees. Many online banks advertise no monthly fees, no overdraft fees, and no ATM fees, for example. Their lower fee structure can save you a significant amount of cash over time.
  • Higher rates: If you open an online savings account and do your banking online, you can expect higher annual percentage yields or APYs than you’d get at a traditional bank. You may also enjoy higher rates on checking account balance and other types of accounts, like money market accounts and certificates of deposits (CDs).
  • Easy access: Chances are you lead a busy life and don’t have to schedule an appointment with a teller and drive to a local bank. The good news is you can access your online bank account at any time. It’s available for you round-the-clock.
  • Extras: Many online banks offer extra conveniences you may find useful. Some examples include mobile apps, early payday deposit, budgeting tools, automated savings features, and easy fund transfers.

Cons

  • No physical locations: If in-person support is important to you, you might consider the lack of branches a downside. While most digital banks offer customer service via online chat, phone, and social media, face-to-face meetings are uncommon.
  • Can be difficult to deposit cash: To deposit cash in a traditional bank account, you can drive to a nearby branch and hand it over to a teller. With a digital bank, however, cash deposits are a greater challenge. Some online banks make depositing cash impossible while other banks let you do so through an ATM or third-party service, such as Green Dot.
  • Less options: Some online banks offer a limited selection of products. For example, you might find checking accounts and savings accounts but no certificates of deposit (CDs), loans, insurance, and brokerage accounts. This can be an issue if you prefer a one-stop-shop experience.
  • Technical glitches: The reality is that technology doesn’t always work flawlessly. While technical problems are rare with digital banks, they do exist. For this reason, it’s wise to open a backup account at a traditional bank and always keep some emergency cash on hand.

Are online banks safe?

If you’re new to the world of online banking, you might wonder if digital banks are safe. In short, any online bank that’s insured by the Federal Deposit Insurance Corporation or FDIC is safe. FDIC insurance means that if your bank fails or shuts down for any reason, the FDIC will give you the money in your accounts.

In most cases, you’ll get up to  $250,000 for an individual account and $500,000 for a joint account. To determine if a digital bank is insured by the FDIC, check their website or look for them on the FDIC website.

If you choose a credit union with digital banking services, you can receive the same type of protection from the National Credit Union Administration or NCUA. It’s a good idea to choose from online banks FDIC insured.

Bottom Line

If you’d like to manage your banking needs online, a digital bank can be a solid choice. While you won’t be able to visit a branch for in-person service, you can lock in competitive interest rates and enjoy the convenience of banking from anywhere at any time.

Additionally, you may be able to avoid some or all of the fees most brick-and-mortar banks charge. Before you decide on an online bank, be sure to explore all your options and weigh the pros and cons of each.

Frequently Asked Questions

What are the best online banks?

When searching for the best online banks, you need to consider what features are important to you. Are you looking for ATMs that are easily accessible from your home or work? Are you seeking a high-interest savings account with the best APY? Or maybe you’d like to get your paycheck two days earlier.

You can find online banks that provide all of these features on our list above.

What does digital banking mean?

Digital banking is when you handle all your financial services digitally. You depend on online tools to make deposits, monitor your deposit accounts, and more.

What is the most popular digital bank?

Ally Bank is known as the oldest and most popular bank in the U.S. It offers a wide array of checking accounts, saving accounts, money market accounts, CDs, and more.

How do I choose a digital bank?

Our list of the best online banks is a great place to start. Consider your goals and preferences to determine the right online banking solution for your situation.

Anna Baluch
Meet the author

Anna Baluch is a freelance personal finance writer from Cleveland, OH. She enjoys helping people make smart financial decisions.