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Home » Banking » Checking » Online » The Best Online Banks For Your Money In 2019

The Best Online Banks For Your Money In 2019

Last Updated On November 30, 2019 Robert Farrington 2 Comments

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best online banks

Are you tired of waiting in long lines, and dealing with too many fees and minimum requirements? Opening a checking account with an online bank could be your solution.

Today, almost every bank offers online banking options, but did you know that there are banks that solely operate online, with no actual branch locations? These banks offer most of the products you find at traditional banks- checking, savings, CDs and money market accounts. A few even offer mortgage products!

Without the overhead of physical locations, online banks can pass the savings to their customers, who will enjoy lower fees and added benefits, including protection from bank fraud. The APY will also be higher than traditional banks.

We break down our list of the best online banks - these are banks that typically deliver value in multiple areas, and no fees, and really easy to use products.

Featured Bank: CIT Bank. This high yield savings account is one of the best on the market, and it currently pays 1.85% APY! That's one of the best rates out there right now. Open a Savings Builder account here >>

Quick Navigation
Top 3 Picks For Online Banks
Specialty Banking Products
Why Select Online Banks Over Traditional Banks?
Advantages Of Online Banks
Disadvantages Of Online Banks
Finding The Highest Yield
The Best Online Banks
The Bottom Line: It Comes Down To Your Priorities

Top 3 Picks For Online Banks

Here's our top 3 picks for online banks. If you're not using one of these banks, we strongly encourage you to check them out for your checking, savings, and banking needs.


SoFi Updated Logo

1. SoFi Money - High Yield Checking Account

  • Highest Yielding Cash Management Account - 2.00% APY
  • Easy to use online banking
  • No monthly fees, no overdrafts, no ATM fees!
Open An Account

2. Chime Bank - $5 Free And Top Mobile App

  • Get $5 Free When You Open An Account
  • Easy to use online mobile banking app
  • Automatic savings program and fee-free ATMs
Open An Account

Discover Bank Logo

3. Discover Bank - Robust Fee-Free Banking

  • $0 minimum free checking account
  • Cash back debit
  • Highly rated online savings and money market accounts
Open An Account

Specialty Banking Products

If you're looking for a specific banking product, we have lists of the top banks in those areas. These banks on this list focus on all-around banking products and service, but you might just have a need for a savings account, CD, or mortgage.

Here's our top picks in each category.

  • Best Free Checking Accounts
  • Best High Yield Savings Accounts
  • Best Money Market Accounts
  • Best Certificates Of Deposit
  • Best Banks To Refinance Your Student Loans
  • Best Online Mortgage Lenders
  • Best Personal Loans

Why Select Online Banks Over Traditional Banks?

Many have no bank fees, and most offer reimbursement for other bank fees. Just make sure the bank is FDIC insured, usually $250,000 in coverage at traditional banks. Consumers love the convenience of doing their banking from anywhere with a few simple clicks. 

Most online banks offer the same banking products that you can find at traditional banks. Most online banks include checking, savings, top rated CDs, and money market accounts. 

Advantages Of Online Banks

Due to the nature of online banking, there are some distinct advantages that online banks can offer over traditional banks. Here are a few:

  • check
    High Rates: Generally, online banks tend to offer bank account and CD rates of 0.5% or higher, which is more than what most traditional banks currently offer.
  • check
    Low Fees: Because of reduced overhead costs, there are usually low fees, or even no fees. 
  • check
    User Friendly: Most online banks also have mobile apps, and a user-friendly interface, so you don’t have to be super tech-savvy.

Disadvantages Of Online Banks

Of course, making the switch to online banking presents some challenges as well, although they are minor. Here are a few disadvantages of online banks:

  • check
    Difficulties with Depositing Cash: Customers who regularly deposit paper checks or cash may face some inconveniences. You can get around this by depositing funds in a traditional bank, and then transferring funds to your online bank to take advantage of high APY rates. If you usually go to the bank to deposit paper checks, you will save yourself a trip by making mobile deposits via smartphone, where you take a picture of the front and back of the check. Withdrawing money is easy; just go to the preferred ATM locations for your online bank.
  • check
    Limited Product Offerings: If customers are looking for home loans, personal loans, or brokerage accounts, the choices are limited.
  • check
    No Personal Interaction: This is not a problem for most people. You save a trip to the bank, and if you need customer service, you can contact an agent by phone or chat.

Finding The Highest Yield

If your goal is only to have the highest yielding products, then check out this article of high yield savings accounts or this list:

The Best Online Banks

In addition to our top 3 listed above, we’ve put together a breakdown of some of our other best online banks. Make sure you check out each one based on your situation. Our favorites include Aspiration and USAA.

All rates and APY were last updated on November 1, 2019.

Ally Bank

Ally is an award winning online bank that charges no ATM fees. Ally bank offers 1.0% APY on savings accounts, and a $10.00 reimbursement on ATM fees. For checking accounts, you can earn 0.10% APY on balances less than $15,000, and 0.60% APY on balances of over $15,000.

Check out our full Ally Bank review here.

Open an Account

American Express Bank

American Express Bank provides online banking customers with access to online savings accounts and CDs through the American Express Personal Savings online bank. There are no monthly fees or minimums associated with the online savings account. The account links with up to 3 of your current bank accounts, so there is no need to completely switch banks. Check out our full American Express Savings Bank review.

Open an Account

Axos Bank

Axos Bank Rewards Checking has flexible requirements to earn a high APY and also provides ATM fee reimbursement. Instead of requiring you to meet 3 requirements, you get 0.4166% APY for each requirement you meet: a monthly direct deposit of $1,000 or more, using your debit card 10 times per month, using your debit card 15 times or more per month, with a maximum 1.25% APY based on account activity. 

Open an Account

Bank 5 Connect

Bank 5 Connect has a rewards program where Bank 5 Connect debit cardholders earn rewards points for every $2 spent. Bank 5 Connect lets you write checks for free, and provides ATM reimbursements.

With a high interest rate of 0.76%, low minimum deposit requirements, and no monthly maintenance fees, Bank 5 Connect is a great choice with rewards to cash in for gift cards and other merchandise.

Open an Account

Barclays

Based in the UK, Barclays offers clients in the U.S. access to online savings accounts and CDs. Online savings accounts through Barclays feature no minimum balances to open and no monthly maintenance fees.

Open an Account

BBVA Bank

BBVA Bank is one of our favorites that a lot of people haven't heard of. They offer a top rated money market account, great CDs, and free checking accounts!

This bank has everything you need for your money, and they offer great rates, low and no fees, and all around great banking.

Open an Account

Capital One 360

​Capital One 360 was acquired and rebranded by Capital One. Formerly known as ING Direct, Capital One 360 offers online checking, savings, CDs, business savings, and children’s accounts, many with no minimum balance requirements or monthly fees.

In addition, Capital One 360 also offers brokerage accounts, IRAs, and mortgages. Read our full Capital One 360 review here.

Open an Account

Charles Schwab

Charles Schwab is geared towards investors who travel frequently and hold accounts with high balances. With the High Yield Investor Checking Account, there are no fees for ATM use anywhere in the world.

There are also no foreign transaction fees, and ATM reimbursement for any international ATMs that have fees. The account offers a 0.15% APY and no minimums or monthly service fees. If you have a linked Schwab brokerage or savings account, there are no fees to cover overdrafts. Check out our Charles Schwab review.

Open an Account

Consumers Credit Union

The Consumers Credit Union is a credit union open to all members. It offers free checking and up to 4.5% APY if you meet certain conditions. In order to join, you just have to pay $5 for membership with their sponsor, the Consumers Cooperative Association. Now, you will be eligible for a free checking account. 

To get unlimited ATM reimbursement and 3.09% APY on balances up to $10,000 you need to make at least 12 debit card purchases per month without using the 4 digit pin code, at least one direct deposit or online payment per month, log in at least once per month, and sign up for paperless statements.

If you open a Visa credit card with the Consumers Credit Union and spend at least $500 per month with the card, they kick your interest rate up to 3.5% APY on balances up to $15,000. If you spend at least $1,000 per month, enjoy 4.59% APY on balances up to $20,000. Yes, the requirements are extensive, but the APY is substantial. If you fail to meet the requirements, you only get 0.01% APY with no ATM reimbursement.

Open an Account

Discover Bank

Discover Bank is one of the "oldest" online banks - one of the first to offer high yield savings accounts and more. However, most people only think of Discover for their credit cards.

In addition to offering competitive credit cards, Discover Bank offers savings, money market, CDs and IRAs. Online savings offers one of the highest APYs you'll find around.

Read our full Discover bank review here.

Open an Account

Fidelity Cash Management Account

Fidelity’s Cash Management Account is structured similar to a brokerage account rather than a regular checking account. With a 0.07% APY and no monthly fees or overdraft fees, you can rest assured that your savings are growing at a steady rate.

There is a $1,250,000 limit with no required minimum balance. There are no ATM fees, and ATM reimbursement is available for ATMs located in the US. Read our full Fidelity review here.

Open an Account

FNBO Direct

First National Bank of Omaha currently offers a competitive APY for its online savings account, with a minimum deposit of $500. Even more impressive, it offers an interest bearing checking account that currently pays 0.65% APY and an online savings account that pays 1.15% APY with minimum requirements.

Open an Account

Marcus by Goldman Sachs

Marcus by Goldman Sachs has great online banking options. They specialize in high yield savings accounts and high yield CDs. However, they are continuing to diversify their product offering and offer great choices for users. 

They are lacking some features, like mobile check deposit, but they do make up for it with generous online transfer amounts and more. Check out our Marcus by Goldman Sachs review.

Open an Account

MemoryBank

MemoryBank will give you up to 1.5% APY for the first year on balances up to $250,000 for the first year as long as you meet the following conditions: receive at least one electronic deposit every month, payroll deposited into the account, and select the paperless statement option.

If you have a large balance and want to find the best liquid account, MemoryBank has a good offer. You need at least $50 to open the account. You will get access to AllPoint ATMs.

Open an Account

Radius Bank

Radius Bank caught our attention earlier this year with their Hybrid Checking account, which is like the best of checking and savings accounts combined. They are one of the few banks on this list that offer interest bearing checking, but with some really low minimums to earn interest.

Also, they have a great mobile platform that has mobile deposits and more. Plus, no monthly fees, which is what we like to see. They also have some innovative small business checking options as well.

Read our full Radius Bank review here.

Open an Account

TIAA Bank

TIAA Bank (formerly Everbank) is a great online bank because they guarantee that their rates will always be in the top 5% of all rates.

They also offer a great first year introductory APY on your checking account, on balances up to $250,000. They also reimburse ATM fees as long as you keep at least $5,000 in your account.

Open an Account

Synchrony Bank

Synchrony is widely recognized as one of the best banks around, and they have the best interest rates. Account holders enjoy a 1.05% APY, no minimum deposit or balance, and no fees or service charges.

Synchrony also rewards member loyalty with travel rewards such as car rentals, and hotels. Loyal customers can also take advantage of perks such as ATM fee reimbursements, travel rewards, and discounts on theme parks, car rentals, and hotels. 

Read our full Synchrony Bank review.

Open an Account

USAA Federal Savings Bank

USAA is a unique bank in that it limits it's membership to current and former service members, as well as their families. However, if you can become a member, USAA is hands down our favorite online bank.

They offer free checking, decent yields on their savings accounts, and a variety of perks that every online bank should offer. These include free checks, ATM fee refunds, mobile check deposit, and more. You can read our full USAA Bank review here.

Open an Account

The Bottom Line: It Comes Down To Your Priorities

We have established that most of the accounts offer a higher APY than traditional banks. If a high APY is your top priority, Bank 5, Bank of the Internet, Consumer Credit Union, and TIAA Bank are some of our top picks. If you want an account that offers rewards and perks, Synchrony is your best bet. 

You should compare these online banks with the best credit unions here.

For higher returns on higher balances, Charles Schwab may be your first choice. Whatever you decide, base your decision on how much you can afford to put into the account, and how you plan to use the account.

Have you opened a checking or savings account with an online bank?Do you enjoy the benefits of an online bank over a traditional bank? Tell us in the comments section below!

Filed Under: Online
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.

About Robert Farrington

Robert Farrington is America's Millennial Money Expert, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.

One of his favorite tools is Personal Capital, which enables him to manage his finances in just 15-minutes each month. Best of all - it's free!

He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a mix of properties through Fundrise. Worth a look if you're looking for a low dollar way to invest in real estate.

Comments

  1. Manny says

    September 7, 2019 at 7:15 pm

    With all the options of higher savings rates and fewer fees, who would open a brick and mortar account anywhere anymore?

    Reply
    • Robert Farrington says

      September 8, 2019 at 9:04 pm

      Typically it’s for people that do a lot of cash transactions. Also businesses may benefit from a local bank (for both the cash transaction aspect, as well as lending potential).

      Reply

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