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 an internet connection, and avoid the 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 2024.
16 Best Online Banks
Whether you’re looking for robust investment options, minimal fees, or strong interest rates, you’re sure to find a bank in our list that meets your needs.
1. 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 4.60% APY on savings and 0.50% APY on checking accounts, as long as you set up direct deposit.
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.
Learn more: SoFi Review
2. Upgrade
Upgrade is a leading fintech company that partners with Cross River Bank to offer innovative banking solutions without the typical fees associated with traditional banks. The Upgrade Rewards Checking Plus account has no monthly maintenance fees, overdraft fees, or transfer fees. There are also no minimum balance requirements to maintain the account.
One of the main attractions of Upgrade is the ability to earn up to 2% cash back on everyday debit card purchases, effectively turning regular spending into savings. Additionally, customers can benefit from early direct deposit, allowing them to access their paychecks up to two days earlier than the standard payroll schedule.
Upgrade further enhances customer convenience by reimbursing up to five out-of-network ATM fees per month, subject to certain conditions. This feature, coupled with FDIC insurance up to $250,000, makes Upgrade a secure and flexible online banking choice.
For those looking to manage their finances efficiently, Upgrade offers a user-friendly mobile app available on both iOS and Android platforms, making banking accessible anytime, anywhere.
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.
With Current, building your credit is now as easy as using your debit card for regular purchases, eliminating the need for borrowing or credit checks.
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. 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 ATMs1 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®5 feature, which allows for fee-free overdrafts. Plus, you can round up9 your debit purchases and transfer them into the Chime high yield saving account to meet (or even exceed) your savings goals. Additionally, Chime offers early direct deposits2 and an intuitive mobile app you can use on your iOS or Android device.
Learn more: Chime Bank Review
5. GO2bank
GO2bank is a cutting-edge online bank, designed to cater to the diverse needs of its customers. Launched by Green Dot Corporation, it aims to provide a seamless banking experience with a wide array of features that make managing finances convenient and hassle-free.
With no monthly fees (with eligible direct deposit) or minimum balance requirements, GO2bank offers a user-friendly mobile app that allows you to access your account, deposit checks, and pay bills from your iOS or Android device. You can also benefit from its extensive network of over 19,000 free ATMs nationwide.
One of the standout features of GO2bank is its Early Pay feature, which allows qualifying customers to receive their paychecks up to two days earlier than their regular payday.
GO2bank also offers a high-yield savings account with a competitive 4.50% APY, helping you grow your savings faster. In addition, the bank’s Secured Credit Card can help you build or improve your credit score.
To further enhance your banking experience, GO2bank offers a range of features, including mobile wallet compatibility with Apple Pay, Google Pay, and Samsung Pay, as well as the ability to lock and unlock your debit card directly from the app.
Learn more: GO2bank Review
6. 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.
Learn more: CIT Bank Review
7. 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.
Learn more: Ally Bank Review
8. 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.
Learn more: Discover Bank Review
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
Learn more: Varo Bank Review
14. 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.
15. 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.
16. 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.
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.
- Fewer 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.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
9. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
