Best Online Banks of November 2023

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.

15 Best Online Banks of 2023

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

1. 🏆 Discover Bank
2. Ally Bank
3. Western Alliance
4. Aspiration
5. Axos Bank
6. Varo Bank
7. Capital One 360
8. American Express National Bank
9. Quontic
10. SoFi
11. UFB Direct
12. Synchrony Bank
13. NBKC Bank
14. TIAA Bank
15. CIT Bank

1. Discover

🏆 Best Overall Online Bank

• 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, payday advances (when you set up direct deposit), and Apple Pay compatibility.
• High-Yield Savings: Discover’s online savings account has an APY of 4.35%, 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

Learn More:

• Discover Bank Review

2. Ally Bank

• Apple iOS: 4.7 /
• Google Play: 3.7

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 4.40% 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

Learn More:

• Ally Bank Review

3. Western Alliance Bank

• Apple iOS: 4.9 /
• Google Play: 4.2

While Western Alliance specializes in offering a suite of business and commercial banking products, it takes the prize for personal online savings.

The FDIC-insured bank partners with Raisin, a user-friendly online financial platform, to offer industry-leading interest rates on its savings account.

Why It Made Our List

• Competitive rates: Western Alliance offers 15% APY on all savings account balances, more than 12 times higher than the national average.
• No fees: Western Alliance’s savings account has no monthly fees or minimum balance requirements to keep up with. You just need a $1 deposit to start earning.
• User experience: Customers manage their accounts through the highly-rated Raisin app, which is streamlined and efficient. You get 24/7 access to your funds and easy account management.

Products

• High-yield savings
• Business checking accounts
• Business savings accounts
• Business loans
• Business credit cards

4. Aspiration Spend & Save™

• Apple iOS: 4.7 /
• Google Play: 4.2

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 premium account that can earn up to 5% interest. The premium account is $7.99 per month ($5.99 per month if you pay for one year in advance).
• 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

Learn More:

• Aspiration Review

5. Axos Bank

• Apple iOS: 4.7 /
• Google Play: 4.5

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

Learn More:

• Axos Bank Review

Axos Bank

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Axos Bank offers user-friendly online banking tools and typically offer some of the highest rates on savings and checking products.

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6. Varo Bank

• Apple iOS: 4.9 /
• Google Play: 4.7

Varo Bank makes online banking easy with its highly-rated mobile app and standout customer service.

The company provides chat support 7 days a week and offers competitive interest rates and cash back on certain purchases.

Why It Made Our List

• Mobile App: Varo has one of the highest-rated apps in the online banking industry. The app is available for iOS and Android and can be used to manage your accounts and set up personalized tools for saving. The app can also notify you of any withdrawals, deposits, or debit card purchases.
• No Fees: Varo doesn’t charge a monthly maintenance fee and provides 55,000 fee-free Allpoint ATMs nationwide. While some banks charge overdraft fees of as high as $35, Varo does not have a penalty for overdrafting.
• Savings Programs: Varo offers two optional automatic savings programs that can be linked to your account. Save Your Pay allows you to automatically put a percentage of your direct deposit paycheck into your savings account. Save Your Change will round up transactions and transfer the difference to your savings, allowing you to build up a nest egg without even thinking about it.

Products

• Checking account
• High-yield savings account
• Savings programs
• Credit-builder cards
• Up to $250 cash advance

7. 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 more than 70,000 fee-free 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

Learn More:

• Capital One 360 Review

8. American Express National Bank

• Apple iOS: 4.9 /
• Google Play: 4.1

American Express is widely known for its credit cards, and its banking services cater to AmEx credit card users with convenient banking and special perks.

If you’re not a cardholder, American Express National is still a good choice for those looking for a savings account with minimal requirements or fees.

Why It Made Our List

• Cardholder Benefits: If you’ve had an AmEx card for at least three months, banking with American Express National means getting a more competitive APY and rewards for purchases on your checking account. Keep in mind that only AmEx cardholders can get online checking accounts.
• CD Options: American Express National has 7 terms that range from 6 to 60 months on its standard one-time deposit CD account. APYs on the CD terms are competitive with other online banks and do not require a minimum deposit to open.
• Savings Terms: We like that American Express National’s savings account has a competitive APY of 4% and doesn’t have a minimum balance requirement. There are no monthly maintenance or overdraft fees on savings accounts, either.

Products

• Savings account
• Checking account (for AmEx cardholders)
• CDs
• Credit cards
• Business credit cards

Learn More:

• American Express Bank Review

9. Quontic

• Apple iOS: 4.4 /
• Google Play: 3.2

Quontic is an all-around solid choice for 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 5.00% 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

Learn More:

• Quontic Bank Review

Quontic

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Quontic Bank has a commitment to offering ultra-competitive rates on their accounts. A Quontic Bank checking account is a great place to store your cash and earn interest at the same time.

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10. SoFi

• Apple iOS: 4.8 /
• Google Play: 4.1

Founded as a financial services company with innovative student loan refinancing, SoFi has grown to become an FDIC-insured nationally chartered bank that offers a hybrid checking and savings account.

However, considering SoFi’s roots, the company remains a great option for anyone whose banking and savings goals include refinancing student loans.

Why It Made Our List

• Student Loan Refinancing: SoFi’s student loan refi is easy to sign up for and comes with flexible terms and low interest rates, allowing borrowers to pay off student loans faster and for less money.
• Loan Options: In addition to student loan refinancing, SoFi offers personal, home, and private student loans. All come with competitive fixed rates and an easy application process.
• High Yield With Direct Deposit: SoFi’s combined checking and savings account comes with a 1.20% APY on all balances. But if you set up direct deposit, you’ll see much higher yields – 4.30% – on your savings balance. You’ll still get a 1.20% APY on checking.

Products

• Hybrid checking and savings account
• Credit cards
• Personal, student, home, and small business loans
• Student loan refinancing
• Investing

Learn More:

• SoFi Bank Review

11. UFB Direct

• Apple iOS: 4.8 /
• Google Play: 4.6

UFB Direct is a division of Axos Bank that provides savings and money market accounts with higher-than-average APYs.

UFB is a great option for anyone who wants to set up a money market or just have a savings pool outside of a checking account at another institution.

Why It Made Our List

• High-yield Savings: UFB Direct offers 4.81% APY on its savings and money market accounts. The savings account also comes with check-writing privileges. There is no minimum deposit for either type of account.
• Minimal Fees: UFB Direct doesn’t charge a monthly maintenance fee or minimum balance on its savings account. There is a $10 monthly fee for money market accounts but you can skirt that if you keep your daily balance at $5,000.
• User-friendly Experience: In addition to its highly rated mobile app, UFB Direct provides customers with 24/7 live phone support and an online chat option.

Products

• Savings account
• Money market account
• Home loans

Learn More:

• UFB Direct Review

12. Synchrony Bank

• Apple iOS: 4.8 /
• Google Play: 4.7

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 4.75% 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

13. NBKC Bank

• Apple iOS: 4.4 /
• Google Play: 4.2

NBKC Bank is a primarily digital-only banking platform that provides a fee-friendly hybrid checking and savings account.

NBKC has some of the most unique lending solutions around, including mortgages geared toward pilots and construction loans. The bank is well-versed in assisting veterans, with 1 out of every 5 mortgages being VA loans.

Why It Made Our List

• Simplified Banking: NBKC’s Everything Account is its combined checking and savings that creates a streamlined banking experience for customers that includes online bill payments and savings goal trackers. You can also link your Everything Account to accounts with other banks to get a full financial picture. There is a 1.50% APY across all balances.
• Limited Fees: NBKC doesn’t charge minimum balance, maintenance, overdraft, or foreign transaction fees. The only fees you may incur come with sending a domestic wire transfer ($5) or sending or receiving an international transfer ($45).
• Additional Savings Options: NBKC makes it easy to save money beyond its Everything Account with several account choices, including money markets, health savings, and IRA savings, and CDs.

Products

• Hybrid checking and savings accounts
• Money market accounts
• IRA savings accounts
• CDs and IRA CDs

14. TIAA Bank

• Apple iOS: 4.7 /
• Google Play: 4.5

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 6 days a week, while a lot of banks limit their hours to weekdays. Customer service is available from 8 a.m. to 8 p.m. on weekdays and from 9 a.m. to 7 p.m. on Saturdays. 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

15. CIT Bank

• Apple iOS: 4.6 /
• Google Play: 3.3

CIT Bank’s variety of personal and business services and banking products make it a good pick for customers looking for flexibility in their online bank.

CIT also has competitive interest rates in its multiple savings accounts, as well as its standard checking account.

Why It Made Our List

• Savings Accounts: CIT Bank has a standard savings account –  Savings Connect – that earns 4.60% APY, doesn’t have a monthly maintenance fee, and only requires a $100 minimum deposit to open. More aggressive savers might like CIT’s tiered savings account – Savings Builder – which requires you to deposit at least $100 each month or maintain a balance of $25,000 or more. Savings Builder accounts have a 1% APY and a $100 minimum deposit. The Platinum Savings will yield the highest APY – 4.95% – if you keep at least a $5,000 balance.
• CD Options: CIT has four CD options, including term CDs ranging from 6 to 60 months and an 11-month no-penalty CD that you can access if needed. Its Jumbo CD is a good option for those with a lot of cash upfront since it requires a $100,000 minimum deposit. And available to existing customers, RampUp CDs allow you to raise the rate of your CDs one time during their terms if CIT raises its rates on those CDs.
• Surcharge Reimbursements: One helpful perk of banking with CIT is it will pay you back for ATM surcharges up to $30 each month if you have to use an out-of-network machine.

Products

• Checking accounts
• 3 savings accounts
• 4 CDs
• Money market accounts
• Home loans
• Business accounts
• Business loans

Learn More:

• CIT Bank Review

Summary: Best Online Banks

Pros and Cons of Online Banks

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

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.