Best Online Banks of 2022

Each year we have more and more online banks offering perks that could save you more money. But, what are the best online banks this year?

Because online banks don’t pay for a brick-and-mortar presence, the best online banks should offer low to no banking fees and offer better interest rates on deposit accounts compared with traditional banks.

11 Best Online Banks

Here are the top online-only banks you can open an account with today:

  1. 🏆 Quontic
  2. Ally Bank
  3. Aspiration
  4. Axos Bank
  5. Bluevine
  6. Capital One 360
  7. Chime
  8. Current
  9. Discover Bank
  10. Synchrony Bank
  11. TIAA Bank

1. Quontic

🏆 Best Overall Online Bank

  • Apple iOS: 4.4 /
  • Google Play: 3.3

Quontic is an all-around solid choice of an online bank. It has several checking and savings accounts, including an innovative Bitcoin rewards checking account.

These accounts have low opening deposit requirements, no monthly fees, and competitive APYs.

Why It Made Our List

  • Competitive Rates: Quontic’s rates are competitive across the board for its CD, MMA, checking, and savings accounts, led by a 2.15% APY on high-yield savings.
  • Accessibility: Quontic gives you 24/7 access to mobile and online banking, Apple Pay, Zelle, Google Pay, and Samsung Pay. You also have access to a network of over 90,000 fee-free ATMs.
  • Rewards Checking: We like Quontic for its checking rewards accounts. You can get 1.5% back on debit card purchases in the form of cash or Bitcoin rewards in most states. Quontic is leading the way as the first traditional online bank to offer a Bitcoin rewards checking account.

Products

  • High-interest checking
  • Cash rewards checking
  • Bitcoin rewards checking
  • Money market account
  • CD
  • High Yield savings
  • Mortgages

2. Ally Bank

  • Apple iOS: 4.7 /
  • Google Play: 3.9

Ally Bank is an attractive online banking option for the tech-savvy account holder. You get low fees, high-interest rates – as well as a selection of different types of accounts.

Ally also offers plenty of credit cards, loans, and investments to choose from – meaning it could also handle many more of your financial needs.

Why It Made Our List

  • Minimal Requirements: Ally doesn’t have minimum deposit requirements, minimum account balances, or monthly fees.
  • Savings Account: Ally’s savings account stands out for its consistently competitive APY (currently 2.00% APY), organized buckets for saving goals, recurring transfers, and round-ups.
  • ATMs: You get access to over 43,000 ATMs for checking or money market accounts and fees are reimbursed up to $10 per statement cycle for fees.
  • User Experience: Ally has a great mobile app, high customer satisfaction ratings, and 24/7 customer service.

Products

  • Online savings
  • Interest checking
  • Money market
  • CD accounts
  • IRA and trust accounts
  • Mortgages
  • Auto loans
  • Home loans

3. Aspiration Spend & Save™

  • Apple iOS: 4.7 /
  • Google Play: 4.3

Aspiration is an online-only cash management account that offers a Spend & Save account that functions like a checking and savings account.

They also offer a credit card, limited investment accounts, and a sustainable impact service that helps businesses make more environmentally sustainable choices.

Why It Made Our List

  • Social Commitment: People who align their financial choices with their environmental principles will like Aspiration. They have earned B Corp status for their sustainability efforts.
  • Spend & Save Account: This account offers 1% cash back on debit card purchases at eco-friendly retailers and .5% cash back everywhere else. The basic account is fee-free and offers 3% APY for savings over $1,000 a month. There’s also a $5.99 premium account that can earn up to 5% interest.
  • Purchase Protection: Your Spend & Save debit card comes with an extended warranty on purchases, full refunds within 60 days if a store won’t accept your return, and $600 of phone insurance when you pay your monthly bill with your Aspire card.

Products

  • Spending account
  • Saving account
  • Credit card
  • Sustainable investment accounts

4. Axos Bank

  • Apple iOS: 4.7 /
  • Google Play: 4.6

Axos Bank is a one-stop shop designed to meet a range of banking and borrowing needs.

It’s secure, positively reviewed, and has higher interest rates across its accounts than brick-and-mortar banks.

Why It Made Our List

  • Checking Accounts: Axos has 5 checking accounts, offers interest, unlimited ATM fee reimbursements, and no maintenance fees or balance requirements.
  • Fee Structure: Axos limits fees on its leading checking accounts, the Essential and Rewards checking, with no insufficient funds or overdraft fees. The accounts simply reject further transactions unless you connect an overdraft line of credit or savings account.
  • Online Experience: Axos’s app and website are super user-friendly and let you apply for loans, manage your bank accounts, make remote deposits, and pay your friends with just their number and email.

Products

  • Checking accounts
  • High-yield savings account
  • CDs
  • Mortgages
  • Auto loans
  • Personal loans

5. Bluevine

  • Apple iOS: 4.6 /
  • Google Play: 4.6

Bluevine is a great online banking option for building and managing a business. It specializes in offering tailored checking and lending products to help businesses grow and maximize their cash flow.

Deposits are also FDIC-insured up to $250,000 per account holder through Coastal Community Bank, so you can trust your funds are secure.

Why It Made Our List

  • Competitive interest: Bluevine’s only bank account, Business Checking, earns 1.50% APY on up to $100,000 when you either spend $500 per month with your Bluevine Mastercard or accept $2,500 of customer payments per month in your account.
  • App compatibility: You can connect your Bluevine account to Quickbooks, Wave, Expensify, Xero, Cash App, Venmo, Wise, Square, and Gusto to streamline managing your bills, taxes, and payroll needs.
  • Credit card pay: Bluevine lets you pay vendors with a credit card, even if they don’t accept credit card payments. It sends your payment as an ACH transfer or physical check, giving you up to 45 days to pay and letting you get credit card rewards. This can be a helpful financial cushion for new businesses.

Products

  • Business checking
  • Business loans

6. Capital One 360

  • Apple iOS: 4.9 /
  • Google Play: 4.6

Capital One is one of the largest banks in the nation. While it’s primarily an online bank, there are local branches in 9 states.

It’s a great full-service bank if you’re looking to house your family’s bank accounts and loans in the same place.

Why It Made Our List

  • Locations: Capital One has 70,000 ATMs, over 700 branches, and innovative Capital One Cafes, where you can sip, snack, and take care of business, or just take it easy. Capital One is our pick if you’re looking for a hybrid online bank that still gives you access to brick-and-mortar locations and facetime with your bank’s reps.
  • No Minimums: You don’t have to make a minimum opening deposit or maintain a minimum balance for Capital One 360 checking accounts, savings, or CDs.
  • Teen Checking: We also like Capital One’s joint account for parents and kids. You can set parental controls and transfer money to your children. They get to manage their finances in the Capital One app and have their own debit card.

Products

  • Performance savings
  • CDs
  • Kids savings account
  • Checking
  • Teen Checking
  • Credit cards
  • Business and commercial banking
  • Auto loans

7. Chime Bank

  • Apple iOS: 4.8 /
  • Google Play: 4.6

If you’re after no-hassle banking, Chime may just be what you’re looking for. While Chime isn’t a traditional bank, account holders’ funds are held at FDIC-insured banks.

Chime is quick and easy to use with a solid app that allows you to manage all your accounts in one place – and there are no hidden (or visible) fees. Chime has made banking about as simple as it’ll ever be.

Why It Made Our List

  • Checking account: The account comes with round-ups, paycheck advances, and 60,000 fee-free ATMs. You can also link your Chime debit card to Google Pay and Apple Pay for more convenient payment options.
  • Fees: There are no monthly fees, no overdraft fees, and no card replacement fees for Chime’s checking or savings accounts.
  • Savings account: Chime offers decent interest on its savings accounts at 1.50% APY, with no minimum balance requirement.

Products

  • Checking account
  • Savings account
  • Credit builder credit card

8. Current

  • Apple iOS: 4.7 /
  • Google Play: 4.6

The Current banking app is perfect for people brand new to banking, like teens and young adults.

With free instant money transfers, instant spending notifications, spending limits, and merchant blocking, using Current gives teens financial freedom and visibility, and gives security to their parents.

Why It Made Our List

  • Teen debit card: Current offers the option to link a teen debit card to the main checking account so you can teach your kid about financial responsibility while keeping an eye on their spending.
  • High APY: Current has a variable interest rate of up to 4.00% APY on its savings account on up to $2,000 of deposits, which is higher than most online banks.
  • Beginners’ tools: Current’s highly rated mobile app and website are extremely easy to navigate. They also provide a ton of resources for new bankers, with dozens of personal finance guides on their blog.

Products

  • Checking
  • Savings

9. Discover

  • Apple iOS: 4.9 /
  • Google Play: 4.7

Most people are familiar with Discover as a credit card company – but it does a lot more than that.

Offering straightforward account options and generous cashback rewards, Discover is one of the best online banks overall. Whether you’re after a savings account, a checking account, or a money market account, Discover has you covered.

Why It Made Our List

  • Lack of fees: Discover Bank doesn’t charge fees for out-of-network ATMs, insufficient funds, stopped payment orders, overdrawn accounts, or returned items. It doesn’t charge any monthly maintenance fees, either, keeping your account costs low.
  • Rewards checking: Discover Bank’s checking account offers 1% cash back on $3,000 of debit card purchases each month, along with other perks like fee-free overdraft protection, pay advances, and Apple Pay compatibility.
  • High-yield savings: Discover’s online savings account has an APY of 2.00%, with no minimum balance, opening deposit requirements, or account fees.

Products

  • Savings account
  • Money market account
  • Rewards checking account
  • CDs
  • Trust accounts
  • Student, personal, and home loans

10. Synchrony Bank

  • Apple iOS: 4.7 /
  • Google Play: 4.6

Synchrony Bank isn’t a newcomer, building a positive reputation as an online bank over the last 20 years. It’s known best for its lineup of retail credit cards with popular brands ranging from Amazon to Walmart.

While Synchrony doesn’t offer any checking accounts, its savings and CD rates are competitive and make it well worth considering.

Why It Made Our List

  • Savings account: Synchrony Bank’s savings account has a competitive 2.15% APY. It also has no minimum account balance requirements, minimum opening deposit, or monthly fees.
  • CD options: Synchrony Bank has CDs ranging from 3 months to 5 years. There’s also a no-penalty CD, bump-up CD, and Traditional and Roth IRA CDs, which not all banks offer. Synchrony’s CD rates are also consistently competitive.
  • Customer service: Synchrony Bank’s customer service line has weekday and weekend hours, and it has specialized phone numbers for each of its credit cards. The website also provides handy banking forms, FAQs, and an ATM finder tool.

Products

  • High yield savings
  • Money market accounts
  • CDs and IRA CDs
  • Credit cards

11. TIAA Bank

  • Apple iOS: 4.7 /
  • Google Play: 4.6

TIAA Bank has comprehensive banking services for personal, business, and commercial needs. That includes competitive high-yield checking and savings accounts and three CD accounts.

TIAA also has a solid user experience, with mobile banking, online tools, and the ability to send money with Zelle.

Why It Made Our List

  • Guaranteed interest: We’re impressed with TIAA’s Yield Pledge promise on its checking account and CDs. The bank compares its rates on these accounts to nearly 5,000 banks weekly. If its rates don’t fall in the top 5% nationally, TIAA adjusts them.
  • Fees: TIAA Bank doesn’t charge monthly service fees or overdraft fees. It also reimburses up to $15 a month of out-of-network ATM fees, and waives all ATM fees if your checking account has at least $5,000.
  • Customer service: TIAA’s customer service is available 7 days a week, while a lot of banks limit their hours to weekdays. The mobile app and website are also extremely easy to use and have lots of resources.

Products

  • High yield checking
  • 3 CDs
  • Savings
  • Money market account
  • Business and non-profit checking
  • Commercial solutions

Summary: Best Online Banks

Bank Products
Quontic Checking, Savings, MMAs, CDs, and Mortgages
Ally Checking, Savings, MMAs, CDs, Loans, and Mortgages
Aspiration Checking, Savings
Axos Checking, Savings, MMAs, CDs, Loans, and Mortgages
Bluevine Business Checking, Business Loans
Capital One 360 Checking, Savings, CDs, Bussiness Accounts, Auto Loans, Credit Cards
Chime Checking, Credit Cards, Savings
Current Checking, Savings
Discover Checking, Credit Cards, Savings, MMAs, CDs, and Loans
Synchrony Savings, MMAs, CDs, and Credit Cards
TIAA Checking, Savings, MMAs, CDs, and Business Accounts

Pros and Cons of Online Banks

As with everything, there are pros and cons to online banking:

Pros:

  • Convenience
  • Low or No Monthly Fees
  • Better Interest Rates Compared to the National Average

Cons:

  • No face-to-face interaction
  • Not all online banks have full banking services
  • Depositing cash takes more time

Tips for Choosing The Best Online Bank

We all have different personal finance lives which means we need different banking services.

Think about Your Needs

You may value a free checking account over getting a high annual percentage yield on 6-month CDs. You may care more about ATM fees than mobile app ratings.

Some customers need an online bank to manage their everyday spending. Others just want a place to park their money so it can grow faster than it would at their local branch of a national bank.

Read the Fine Print

Before you pick an online bank make sure you read the fine print — all the fine print. Taking a good look at the bank’s website, and making sure you’re aware of all potential fees is a must. Often you have to dig deep and find a pdf to learn about a bank’s full schedule of fees.

Check for Fees

While most online banks don’t charge monthly fees – there could be other fees. Foreign transaction fees, wire transfer fees, and even fees to replace your lost ATM card could surprise you later.

So make sure you know what they are in case the bank charges a fee for a common banking task for you. Free access won’t be free if you get dinged every month by these other fees.

Look Into the Interest Rates

Additionally, make sure you choose a bank that offers solid interest earnings – but make sure you know the required account balances and opening deposits to earn the advertised interest rate. There’s no point in choosing an online bank that gives you excellent APY if you can’t qualify for it.

Make Sure the Bank is FDIC Insured

Finally, make sure your money is protected – choosing a financial institution that is FDIC insured will give you peace of mind, so always check whether the bank you’re considering is federally insured.

Frequently Asked Questions

What is an online-only bank?

Online-only banks are financial institutions that offer their banking services exclusively online. Instead of managing accounts and making deposits in person, accountholders carry out banking tasks online or with a mobile app.

Are online-only banks safe?

Quick answer, yes. Just make sure the bank you’re considering is a member of the Federal Deposit Insurance Corp. (FDIC). The FDIC insures your account for up to $250,000. The bottom of the bank’s website should include an FDIC logo if the bank is a member. Credit unions will often show membership in NCUA, an equivalent organization for credit unions.

Is there a fee for online banking?

Online banks tend to have few or no service fees or overdraft fees. That’s because they don’t have to deal with the cost of operating and staffing physical branches.

Are online banks better than regular banks?

Whether an online bank or traditional bank is better for you depends on what you’re looking for. The biggest advantages of a traditional bank are access to in-person customer service and the ability to make cash deposits. While you lose out on these features with an online bank, you typically get lower account fees, higher interest rates, and larger ATM networks.

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