For many consumers, the experience of walking into a bank or credit union branch, opening an account, and having face-to-face time with a teller will never get old. For others, opening up their browser and opening a checking or savings account from the comfort of their home is more their speed.
These days, most of your banking can be done online, from opening an account, to making deposits, transferring funds between accounts, paying bills, investing, and more. With so many banks catering to the online customer, finding the right account can be overwhelming.
To help make your decision a little easier, the Fortune RecommendsTMeditorial team ranked more than 30 different online banks and credit unions that offered checking and savings accounts. We weighed account annual percentage yields (APYs) for interest-earning accounts, monthly service fees, overdraft fees, mobile application ratings, free ATM access, account offerings and services, and customer service options. (Read our full methodology here.)
- SoFi Checking & Savings
- Quontic Bank
- Connexus Credit Union
- Bank5 Connect
- American Express National Bank
- Ally Bank
- Alliant Credit Union
- TIAA Bank
- Rising Bank
- Capital One
The 10 best online banks of 2024
Here’s our rundown of the top 10 online banks and credit unions, including the key figures you should know before you open an account. (Note: Minimum deposit requirements, fees, and other numbers in our list are up to date as of April 18, 2023, and are subject to change.)
1. SoFiChecking & Savings
About: SoFi is an online bank headquartered in San Francisco that offers checking, savings, investing products, and more. SoFi has three physical locations in the U.S., but customers have access to a network of over 55,000 ATMs nationwide. Customers can pay bills, find ATMs, send money, make mobile deposits, and more via SoFi’s website and mobile app.
Checking account APY: 1.20%
Savings account APY: 4.00%
Mobile app rating: 4.4
Overdraft fee: $0
Customer support
Customers can request assistance 24/7 by reaching out to SoFi via phone, chat, email, and even sending general questions to the Twitter account at @SoFiSupport.
Our verdict
Good for those who want to earn a high APY on their checking and savings account balance. SoFi earned the top spot on our list for its stellar APYs on its checking and savings accounts. Additionally, the bank does not charge any monthly service fees; it has no minimum balance requirements, and a vast fee-free ATM network. SoFi also offers a number of other financial services including private student loans, mortgage loans, auto loans, investment services, insurance, and more.
2. Quontic Bank
About: Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It is an FDIC-insured bank offering online and mobile banking platforms and a fee-free ATM network made up of 90,000 ATMs across the country. It offers a number of checking accounts, savings accounts, and mortgage products.
Checking account APY: 1.10%
Savings account APY: 4.05%
Mobile app rating: 3.8
Overdraft fee: $0
Customer support
Customers can contact a customer service representative via live chat, email, and telephone Monday through Friday between 9:00 a.m. and 6:00 p.m. ET.
Our verdict
Good for those who hate overdraft fees. Quontic Bank made our list for its competitive APYs, low fees, and massive ATM network. A major selling point: Quontic doesn’t charge overdraft fees. For the online banker who isn’t diligent about checking their account balance, this could be a lifesaver. What’s more, Quontic offers multiple customer support options and mortgage products in addition to its checking and savings accounts.
3. Connexus Credit Union
About: Connexus Credit Union serves over 441,000 members across all 50 states and offers high-yield checking accounts and deposit products, as well as personal, home, and auto loans. The credit union also offers money market accounts, individual retirement accounts (IRA), consumer credit cards, and more. Connexus members have fee-free access to more than 67,000 ATMs in the CO-OPSM and MoneyPass® ATM networks. Membership eligibility is dependent on being involved with a qualifying association; living in an eligible county or community; or being married to, living with, or related to an existing member.
Checking account APY: 1.75%
Savings account APY: 0.25%
Mobile app rating: 4.6
Overdraft fee: $4
Customer support
Customer service representatives are available to assist account holders via live chat or telephone on weekdays between 7:00 a.m. and 7:00 p.m. CT, and Saturdays from 8:00 a.m. to 1:00 p.m. CT. Representatives can also be reached via email.
Our verdict
Good for those who prefer a credit union and want to do all of their banking under one roof. Connexus Credit Union made our list for a few different reasons. Its checking and savings account APYs were not the highest on our list, but were still competitive compared to national averages. Its mobile app rating scored a 4.6 by our calculations, and the bank charges a modest overdraft fee of just $4, which is significantly lower than many of the banks and credit unions on our list. This credit union also offers a long list of products and services, including checking and savings accounts, money market accounts, credit cards, retirement accounts, investment services, and even financial wellness resources.
4. Bank5 Connect
About: Bank5 Connect is an online division of BankFive, a Massachusetts-based community that has been serving customers since 1855. The bank offers checking and savings accounts, and certificates of deposit (CDs). Bank5 Connect does not offer any branded ATMs; however, it does offer customers free access to thousands of ATMs across the country via the SUM Network.
Checking account APY: 2.00%
Savings account APY: 1.50%
Mobile app rating: 4.6
Overdraft fee: $15
Customer support
For assistance, customers can reach a support specialist via telephone and live chat Monday through Wednesday from 7:30 a.m. to 5:00 p.m. ET, Thursday and Friday from 7:30 am to 7:00 p.m. ET, Saturday from 7:30 a.m. to 3:00 p.m. ET, and Sunday from 11:00 a.m. to 3:00 p.m. ET.
Our verdict
Good for those who want to keep it simple with one no-frills account. Bank5 Connect is a smaller online bank, but offers competitive APYs on the products it does carry. This bank also has a large fee-free ATM network and its mobile app scored a 4.6 rating based on our calculations, although customer service hours vary widely throughout the week, which can make it difficult to know when you might be able to get a representative on the phone.
5. American Express
About: American Express has a history that stretches back to 1850 and has since become globally recognized for their credit cards, rewards, personal, and business banking products. They also have a wide network of over 37,000 free ATMs.
Checking account APY: 0.25%
Savings account APY: 3.75%
Mobile app rating: 4.7
Overdraft fee: $0
Customer support
Customer support specialists are available 24/7 over the phone or via live chat. The Amex app is available for download on the Apple App Store and Google Play and has a 4-star rating on both platforms.
Our verdict
Good for those who need personal and business banking products. American Express took the fifth spot on our list for its competitive APY on its savings account, high mobile app rating, and wide range of product offerings. Amex offers personal bank accounts, credit card products with robust rewards programs, and a suite of business products and solutions for consumers who need the best of both worlds.
6. Ally Bank
About: Ally is an online-only bank that offers a wide range of financial products and services including checking and savings accounts, credit cards, auto loans, personal loans, robo-advisors, and more. Despite the lack of physical branches, Ally offers customers free access to a network of more than 43,000 ATMs.
Checking account APY: 0.25%
Savings account APY: 3.75%
Mobile app rating: 4.3
Overdraft fee: $0
Customer support
For assistance with any of Ally’s bank accounts, credit cards, investment products, or services, customers can reach a representative via live chat, email, or phone 24/7. For auto loan help, representatives are available Monday through Friday, 8 a.m. to 11 p.m. ET, and Saturday from 9 a.m. to 7 p.m. ET. For assistance with new home loans, representatives are available Monday through Friday, 8 a.m. to 10 p.m. ET, Saturday, 10 a.m. to 4 p.m. ET. For existing home loans, phone service hours are 8:30 a.m. to 8 p.m. ET, Monday through Friday and 8:30 a.m. to 1 p.m. ET on Saturday. For questions related to Ally’s lending products, customers can call Monday through Friday, 8 a.m. to 10 p.m. ET and Saturday, from 8 a.m. to 9 p.m. ET.
Our verdict
Good for those who want all of the customer service options. Ally made our list for its customer service options. Account holders can reach a representative day or night via phone, chat, and email. For users who are on the fence about an online bank, the security of knowing a representative is always available might be a selling point for this online-only bank. Ally also offers a number of financial products and services, including checking and savings accounts, credit cards, investment accounts and services, auto loans, personal loans, and more.
7. Alliant Credit Union
About: Alliant Credit Union is a fully digital bank based in Chicago. A non profit financial institution, Alliant offers a suite of financial services and accounts with minimal to no fees. This includes no monthly service fees and no overdraft fees on its checking accounts and no fees on savings accounts for customers who select e-statements. Alliant customers also have fee-free access to 80,000 ATMs across the country.
Checking account APY: 0.25%
Savings account APY: 3.10%
Mobile app rating: 4.7
Overdraft fee: $0
Customer support
Customer service representatives are available 24/7 by calling 1-800-328-1935. Customers can also send secure messages through the bank’s online platform.
Our verdict
Good for those who want fee-free account options. Alliant Credit Union scored a spot on our list for its higher savings account APY, fee-free account options, and for having one of the highest mobile app ratings on our list. Not only does Alliant have a long list of deposit account options, but many of those accounts do not charge fees or have fees that can be waived by meeting certain requirements.
8. TIAA Bank
About: TIAA Bank is a subdivision of TIAA, or the Teachers Insurance and Annuity Association which is headquartered in New York. TIAA has 134 TIAA Offices in the United States, and customers have access to a network of over 80,000 fee-free ATMs. Its products include personal, business, and commercial banking products, as well as investment services. Customers can manage their accounts online or via the TIAA Bank mobile app which is available for download on the Apple App Store and Google Play.
Checking account APY: 0.25%
Savings account APY: 4.25%
Mobile app rating: 4.6
Overdraft fee: $0
Customer support
TIAA representatives are available via email and by telephone, Monday through Friday from 8:00 a.m. to 5:00 p.m. ET.
Our verdict
Good for those who want to earn a high APY on their savings account. TIAA’s savings account APY was tied with one other bank for the highest APY on our list. For consumers who are looking for a bank that offers free ATM access, a developed mobile app, and competitive APYs to grow their balances, TIAA may be a viable option. This bank didn’t offer as many products as some of the other banks we reviewed, but its fee-free accounts could make up for the short list of account options.
9. Rising Bank
About: Rising Bank is an online division of Midwest BankCentre, a St. Louis-based community bank. Rising Bank offers a number of financial products and services, including a checking and high-yield savings account, CDs, insurance products, lending products, and more.
Checking account APY: 0.30%
Savings account APY: 4.25%
Mobile app rating: 4.6
Overdraft fee: $25
Customer support
For customer support, a Rising Bank representative can be reached via telephone Monday through Friday between 8:30 a.m. and 5:00 p.m. CST. Customers can also send a secure message on the Rising Bank website 24/7 and request assistance via email.
Our verdict
Good for those who have the funds for higher minimum deposits. Rising bank offers a few basic account options including checking and savings accounts, CDs with terms ranging from 6-months to 3-years. Rising bank also has an average mobile app rating of 4.6 The one major drawback about this bank is that it requires a $1,000 minimum deposit to open an account and overdrafts will cost you $25 per purchase.
10. Capital One
About: Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence, as well as some physical branches across the country. Customers have access to a network of more than 70,000 ATMs nationwide.
Checking account APY: 0.10%
Savings account APY: 3.40%
Mobile app rating: 4.7
Overdraft fee: $0
Customer support
Capital One offers chat and phone support from 8:00 a.m. to 8:00 p.m. ET, seven days a week. Customers can also send secure messages within the mobile app.
Our verdict
Good for those who want a strong mobile app. Capital One took the final spot on our list for its high mobile app rating and higher than average savings account APY. Capital One’s app gives users the power to manage their Capital One credit cards and deposit accounts, receive purchase notifications, pay bills, send money from their accounts, check their VantageScore, and more. In addition to its highly rated mobile app, Capital One offers a number of financial products and services including checking accounts, credit cards, auto financing, business cards and banking solutions, commercial banking products, and more.
The pros and cons of online banks
Online banks have various pros and cons that you should be mindful of before deciding to bank with a digital-first institution.
Pros
- Online banks may charge no fees or lower fees: Online banks without brick-and-mortar locations save on the overhead costs that traditional banks are responsible for. They may pass on these savings to customers in the form of reduced fees.
- Online banks may offer higher APYs: Fewer overhead costs can also translate to higher APYs on savings products.
- You could benefit from a wider range of digital tools: Online banks with a strong digital presence may invest more in online and mobile banking platforms to make up for the lack of a brick-and-mortar presence. As a result, you could have access to a wider range of digital budgeting and account management tools, customer service options, and more.
Cons
- For customers who like the option of walking into a physical branch, online-only banks may not be the best fit. Sometimes resolving an issue related to your account is better handled by working with a teller face-to-face, especially for customers who aren’t as digitally savvy.
- If you deposit cash frequently, an online-only bank could end up costing you more in fees. Because online-only banks don’t have physical branches, you’ll need to ensure that you find one that offers a fee-free ATM network. In the event that they don’t, it could be challenging to make cash deposits and you’ll likely be responsible for a fee each time you do deposit cash.
Frequently asked questions
How do you keep your online bank account safe?
Be sure to change your password regularly to keep your account secure and less susceptible to being hacked. You can also opt to use multi-factor authentication on your phone or laptop, which adds another layer of security each time you’re logging into your account by asking for a text, email, or phone-call verification code.
Do online banks charge higher fees?
Fees vary from bank to bank, but generally online-only banks tend to charge lower fees than banks with brick-and-mortar locations because these institutions don’t have to pay the same overhead costs that banks with physical locations do.
Is my money safe in an online bank?
Your money is just as safe in an online bank or credit union as it is in a brick-and-mortar institution. What’s important to make note of is a bank’s deposit insurance. Be sure to verify that your financial institution is fully backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
Our methodology
The Fortune RecommendsTM team compared more than 30 online banks and credit unions to help you find the best institution to help you meet your needs. Our top picks are available to customers across the U.S. no matter where you’re located, subject to the terms of account, product, and service. Some of our picks have brick-and-mortar locations; however, all of our picks offer online banking for customers nationwide.
To come up with our final list, we we ranked the best online banks on the following categories and weighted each category as set forth in the percentages below:
- Annual percentage yield (APY) on your checking and savings account balance (45%): This percentage represents the real rate of return on your checking and savings account balance; the higher the APY, the better. For accounts with tiered APYs, we assumed a minimum balance of $5,000 based on the latest date from the Federal Reserve and weighed APYs based on the most basic checking or savings account offered.
- Account and product offerings (10%): We rewarded each online bank a point for each account type and service it offered. This included additional deposit accounts, investment accounts, lending services, credit cards, and more.
- Overdraft fee (10%): Most banks will charge you a fee when you spend more than what you have in your account. We ranked online banks with lower or zero overdraft fees higher on our list.
- Monthly service fees (20%): Some banks charge monthly maintenance fees. We ranked banks with lower or zero monthly fees higher on the list.
- Mobile application rating (5%): We calculated the average mobile application rating for each bank or credit union using ratings from the App Store and Google Play. We rewarded online banks that had a higher average mobile application rating.
- Free ATM access (5%): Accounts belonging to financial institutions that have a vast network of surcharge-free ATMs ranked higher on our list than alternatives that did not offer ATM access.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave phone support the most weight.
We think that the best online banks offer a wide range of product offerings, free ATM access, low or zero monthly service fees and minimum balance requirements, and interest earnings on your balance, among other perks. The requirements, fees, and account perks offered by these online banks may be available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the banks and credit unions on this list are insured by the FDIC and NCUA respectively.
As a financial expert with a comprehensive understanding of the banking industry, particularly online banking, I can provide insights into the concepts mentioned in the article. The article discusses the top 10 online banks and credit unions for 2024, evaluating them based on various criteria, including annual percentage yields (APYs), fees, mobile app ratings, and customer service options. Let's break down the key concepts:
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SoFi Checking & Savings:
- Headquarters: San Francisco
- Services: Checking, savings, investing, and more
- Notable Features: High APYs, no monthly service fees, extensive fee-free ATM network, various financial services including loans, investments, and insurance.
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Quontic Bank:
- Background: Started as a community bank in NYC in 2009
- Services: Online and mobile banking, fee-free ATM network
- Highlights: Competitive APYs, no overdraft fees, multiple customer support options, offers various accounts and mortgage products.
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Connexus Credit Union:
- Membership: Serves over 441,000 members across all 50 states
- Services: High-yield checking, deposit products, loans, credit cards, and more
- Noteworthy: Competitive APYs, lower overdraft fees, extensive ATM access, diverse financial products.
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Bank5 Connect:
- Affiliation: Online division of BankFive, a Massachusetts-based community bank
- Services: Online checking, savings, CDs
- Features: Competitive APYs, no-frills account, fee-free ATM access, limited customer service hours.
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American Express:
- History: Founded in 1850, globally recognized for credit cards and banking products
- Services: Checking, savings, credit cards, rewards programs
- Strengths: Competitive savings APY, strong mobile app rating, personal and business banking products.
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Ally Bank:
- Type: Online-only bank
- Offerings: Checking, savings, credit cards, loans, robo-advisors
- Advantages: Free ATM access, 24/7 customer support via chat, email, and phone, diverse financial products.
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Alliant Credit Union:
- Base: Fully digital bank based in Chicago
- Services: No-fee checking, savings, and a range of financial services
- Highlights: Higher savings APY, fee-free accounts, excellent mobile app rating, extensive ATM network.
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TIAA Bank:
- Affiliation: Subdivision of TIAA (Teachers Insurance and Annuity Association)
- Services: Personal, business, and commercial banking, investment services
- Strengths: High savings APY, free ATM access, developed mobile app.
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Rising Bank:
- Affiliation: Online division of Midwest BankCentre
- Offerings: Checking, high-yield savings, CDs, insurance, lending
- Considerations: Requires higher minimum deposits, average mobile app rating.
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Capital One:
- Size: One of the largest banks in the country
- Services: Checking, savings, credit cards, auto financing, business banking
- Notable: Strong mobile app, higher savings APY, extensive ATM network.
Pros and Cons of Online Banks:
- Pros: Lower or no fees, higher APYs, advanced digital tools.
- Cons: Lack of physical branches, challenges with cash deposits, potential limitations for less digitally savvy customers.
FAQs:
- Safety Measures: Change passwords regularly, use multi-factor authentication.
- Fee Comparison: Generally, online-only banks tend to have lower fees.
- Safety in Online Banks: Money is safe, but ensure FDIC or NCUA backing.
Methodology for Ranking:
- Criteria include APY, account offerings, overdraft fees, monthly service fees, mobile app ratings, free ATM access, and customer service.
- Weighted percentages for each criterion contribute to the overall ranking.
As an enthusiast with in-depth knowledge, I hope this breakdown provides a clearer understanding of the concepts discussed in the article. Feel free to ask for more details on specific aspects.
