Best Online Banks

Online banks are increasingly popular due to their high annual percentage yields (APYs) and low fees. Thanks to their lower overhead costs, they can pass on the savings to customers, making them a great option for those looking for savings accounts or certificates of deposit (CDs) with higher APYs and free checking options.

Rates, deposit requirements, customer service options and fees can vary significantly by institution, so we researched leading banks and credit unions and identified the best online banks of 2024:

• Discover – Best Overall
• Vio – Best for Money Market Account
• Redneck Bank – Best for High-Yield Checking
• Forbright – Best High-Yield Savings
• Acorns – Best Innovation
• Bank5Connect – Best for Customer Service
• American Express – Best Rates
• SoFi – Best for Low Fees
• Alliant Credit Union – Best for Rewards

*Rates and APYs are subject to change. All information provided was accurate as of Oct. 8, 2024.

Besides its credit cards, Discover is also well known for its banking products. It offers deposit accounts with much higher-than-usual APYs with no monthly fees and has some unusual perks like giving customers rewards for debit card purchases. Discover offers savings accounts, checking accounts, money market accounts and certificates of deposit. Unlike many online banks that only accept electronic transfers or deposits, Discover is one of the few that allows customers to make cash deposits, making it a good option for those who regularly receive tips or work in cash-based businesses.

Although Discover has low fees, it has a higher deposit minimum for CDs; customers must deposit at least $2,500 to open a CD. Plus, Discover limits how many withdrawals you can make per month from a savings or money market account, and it charges a $30 outgoing wire transfer fee — a higher fee than many other institutions charge.

Out of all the banks and credit unions Money reviewed, Vio Bank has one of the highest rates for money market accounts, and it doesn't charge monthly fees on these accounts. You can open an account with as little as $100 and earn more than 10 times the national average APY through Vio. The bank has savings accounts, money market accounts and CDs, and it offers higher-than-average APYs on all of its deposit accounts. It boasts low account minimums and no monthly fees, making it a good choice if you're looking to grow your money in a safe place.

However, Vio does have some limitations. It doesn't offer checking accounts, so you'll need another bank account to get check writing privileges or access to a debit card, and Vio charges a $5 monthly fee if you prefer paper statements. Unlike many online banks, Vio has limited online tools and resources. Other financial institutions have robust apps, calculators, budgeting guides and videos to help people manage their money; Vio is more barebones.

Checking accounts rarely pay interest, and when they do, rates tend to be low — the national average APY is under 0.10%. Redneck Bank is a powerful alternative with a quirky name; you can earn a substantially higher rate with its rewards checking accounts, and Redneck Bank doesn't charge monthly fees. It offers the highest APY available for its checking account, and you can open a checking account with as little as $500. Redneck Bank will also refund up to $25 in ATM fees per month, making it easier to access your cash at an ATM.

There are some caveats to be aware of, though. Its highest APY only applies to balances up to $15,000; amounts over that amount will earn a much lower rate of interest. Additionally, Redneck Bank doesn't offer savings accounts or CDs, so you'll likely need another bank for your other financial needs.

Forbright Bank offers an unusually high APY on its growth savings account, so you can earn an APY that is more than 10 times higher the national average with no monthly fee. Forbright offers both savings accounts and CDs with high APYs, and you can easily open an account online. With its savings account, there are no limits on the number of withdrawals or transfers you can make per month. That feature is a significant advantage over other banks that commonly limit customers to just six withdrawals per month (and charge high excess withdrawal fees).

Unfortunately, Forbright's savings account doesn't include debit card access, so you can't withdraw money at an ATM. And the bank only offers checking accounts and money market accounts through its branches. It only operates branches in two states: Maryland and Virginia.

For those looking for a one-stop option for both banking and investing, Acorns offers innovative and unique options. For a flat membership fee, you can get access to checking and savings accounts with higher-than-average APYs, and you can take advantage of benefits like round-up deposits to an investment account and shopping rewards. When you become an Acorns member, you can open a checking account and savings account along with your investment account.

As you use your bank accounts, you can activate the roundup feature — Acorns will round up debit card or banking transactions to the next full dollar amount, and it will deposit the difference in cost to your investment account. Once your investment account has accrued $5 in spare change, Acorns will invest the money in the stock market on your behalf. Acorns also has a paycheck split option, which allows you to automatically invest a portion of your paycheck as it comes in.

However, Acorns doesn't offer CDs or money market accounts, and it does require a monthly membership fee.

Bank5Connect has stellar customer reviews compared to other banks. On TrustPilot, its score is in the "excellent" range, which is unusual for a bank, and it offers multiple customer support options. Other banks often have limited customer support options. With Bank5Connect, you can reach customer service by phone, email, live chat or by setting up a video meeting — an uncommon feature. It also has a highly-rated mobile app you can use to manage your accounts, pay bills and send money to friends or family through Zelle.

Unlike other banks that have CD terms as long as 10 years, Bank5Connect is more limited. It only offers CDs with terms of 36 months or less. Additionally, to earn the highest rate on its money market account, you'll need to deposit at least $5,000 — a much higher-than-usual requirement.

American Express is more than charge cards or credit cards; it's also an excellent banking option. It offers substantially higher-than-average APYs on deposit accounts, and it even has an interest-bearing checking account. Through American Express, you can open a checking account, savings account or CD. These accounts have no monthly fees or minimum balance requirements, and you can even earn Amex Membership Rewards points with your checking account when you use your debit card.

Unfortunately, American Express doesn't offer money market accounts, and it has limited CD term options. Although Amex does offer CDs with high APYs, be aware that it has high early withdrawal penalties; depending on your CD's term, the penalty can be as much as 540 days worth of interest.

SoFi offers powerful bank accounts without fees, meaning it doesn't charge monthly fees or ATM fees. And if you meet direct deposit requirements, SoFi won't charge overdraft fees either. Through SoFi, you can open a combination checking account and savings account; they cannot be opened separately. Both accounts earn higher-than-average APYs, and you can even qualify for a new customer bonus based on your deposit amounts.

There are some drawbacks to be mindful of. SoFi doesn't offer CDs or money market accounts, so you'll need to look elsewhere for those products. And in order to earn the full SoFi new customer banking bonus, you'll need to receive at least $5,000 in direct deposits within 25 days. For many, that requirement may be difficult to meet.

Most banks that offer new customer bonuses charge monthly fees or require hefty deposit requirements. Alliant Credit Union is different; it will reward you with $100 if you save at least $100 per month for 12 consecutive months (and maintain a balance of at least $1,200). That's a significant reward for a no-fee account. Alliant has checking accounts, savings accounts and share certificates — the credit union equivalent of a CD — with higher-than-average APYs and no monthly fees. With many credit unions, membership is limited to select groups, but Alliant's membership is open to residents nationwide.

However, Alliant doesn't have money market accounts, and it has more limited share certificate terms than other banks; the maximum term is just 60 months. Additionally, Alliant charges customers a paper statement fee, which can add to your overall cost.

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How we chose the Best Banks of 2024-2025

To determine our list of Best Banks for 2024-2025, Money staff evaluated hundreds of the largest retail banks, credit unions, regional and state banks, ranked by assets, and 20 of the most popular online banks. We then compared opening balance requirements, interest paid, fees and features to determine our top picks.

We researched the top 25 digital and online financial institutions to identify the best online banks and credit unions of 2024 and then compared the institutions' account options, deposit minimums, APYs, fees and customer service. Priority was given to banks and credit unions without monthly fees and higher-than-average APYs, and we also emphasized the tools available through mobile apps and online portals.

You can read our full methodology here.

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