Best Online Banking Apps
At a Glance
Thanks to a rapidly evolving technological landscape, traditional banking is undergoing a transformative shift. Enter online banking, which offers a convenient, efficient, and customer-centric banking experience without the need for brick-and-mortar locations.
The best online banks give you competitive interest rates and provide a seamless, secure way to manage your money. Looking for an online bank that you can trust with your funds and that can give you additional perks? Here’s an overview of the best digital banks in the U.S. and the various features they offer.
In this article, you’ll learn:
| Bank | Products | Fees | ATM Network |
|---|---|---|---|
| Quontic |
|
No monthly maintenance fees | 90,000 fee-free locations |
| Discover |
|
No monthly maintenance fees | 415,000 ATMs (with access to over 60,000 surcharge-free ATMs through the Allpoint® or MoneyPass® networks) |
| Axos |
|
No monthly maintenance fees | |
| SoFi |
|
No monthly maintenance fees | 55,000 fee-free ATMs worldwide |
| Ally |
|
No monthly maintenance fees | Allpoint ATM network (43,000+ ATMs) |
Featured Checking Accounts from our partners
A closer look at the top digital banks
1. Quontic
Quontic provides competitive interest rates, a focus on underserved communities, personalized customer service, innovative financial products, and a commitment to social responsibility.
Pros:
- Competitive interest rates on savings and deposits
- Targeted approach toward underserved communities
- Personalized customer service experience
- A large variety of financial products
- Contribution to social responsibility and positive impact
Cons:
- Limited customer service hours
- Potential for technical glitches or downtime
Our verdict: Quontic is one of the best digital banks on the market thanks to its appealing financial products and customer-centric approach.
2. Discover
Discover provides high-yield savings accounts, competitive interest rates, fee-free services, a user-friendly interface, robust security features, 24/7 customer support, and access to a wide network of ATMs.
Pros:
- High-yield savings accounts with competitive interest rates
- Fee-free services, including no monthly maintenance fees
- User-friendly online interface for easy navigation and account management
- Robust security measures to protect your personal and financial information
- 24/7 customer support for assistance and inquiries
- Access to a large network of ATMs for convenient cash withdrawals
Cons:
- Certain geographical limitations on ATM availability
- May not offer the same level of personalized customer service as smaller banks.
Our verdict: Discover is perfect if you’re looking for the convenience of online banking without missing out on some of the benefits of a traditional bank.
3. Axos
With Axos, you can enjoy competitive interest rates, no monthly maintenance fees, fee reimbursements for domestic ATM usage, convenient mobile banking, 24/7 customer support, and a wide variety of financial products and services.
Pros:
- Competitive interest rates on savings and deposit accounts
- No monthly maintenance fees for checking and savings accounts
- Fee reimbursements for domestic ATM usage
- Convenient mobile banking with easy access to account management
- Savings account comes with a debit card
- Wide variety of financial products and services are available
Cons:
- Low CD rates in comparison to similar online banks
- $250 minimum deposit to open a savings account
Our verdict: Axos is a full-service bank with no monthly fees and a seamless user experience – it’s a solid option though you may find better CD rates elsewhere.
4. SoFi
SoFi offers competitive interest rates, no account fees (including no overdraft fees), no minimum balance requirements, a user-friendly mobile app, and access to member-exclusive perks.
Pros:
- Competitive interest rates on savings and checking accounts
- No account fees and minimum balance requirements
- Vast ATM network
- Access to member-exclusive perks and benefits such as cash back at certain retailers
Cons:
- No standalone checking or savings account
- Limited banking options
Our verdict: SoFi cardholders get interesting cash back rewards. If you’re looking for a simple, everyday banking solution, this is a good choice.
5. Ally
Ally allows you to enjoy high-interest savings accounts, competitive CD rates, no monthly maintenance fees, 24/7 customer support, a user-friendly interface, mobile banking, and access to a large network of fee-free ATMs.
Pros:
- High-interest savings accounts and competitive CD rates
- No monthly maintenance fees for checking and savings accounts
- 24/7 customer support for assistance and inquiries
- User-friendly online interface and mobile banking app
- Access to a large network of fee-free ATMs for cash withdrawals
Cons:
- No physical branches
- No cash deposits
Our verdict: Ally stands out for its competitive interest rates. If you’re looking to park your money long-term, it may be the best digital bank for you.
How to choose a digital bank?
When choosing an online bank, consider your needs and priorities, such as account types, fees, and customer service. Check for competitive interest rates and transparent fee structures. Read customer reviews to gauge satisfaction, and assess mobile banking capabilities and essential services like bill payments and transfers.
Don’t forget to evaluate customer support options and the availability of being able to easily reach a human is important to you. Review terms and conditions, focusing on fraud protection and dispute resolution. By considering these factors, you can select an online bank that aligns with your financial goals, offers a secure platform, and provides a satisfactory user experience.
Who are online banks best for?
If you’re conscious about fees and interested in maximizing savings, online banks often offer lower fees and higher interest rates compared to traditional brick-and-mortar banks. You need to be tech-savvy, of course. Independent and self-reliant individuals who prefer handling their finances on their terms also find online banking empowering.
How to open a digital bank account?
To open a digital bank account, follow these steps:
1. Choose an online bank that suits your needs and preferences.
2. Visit the bank’s website or download their mobile app.
3. Click on the “Open an Account” or similar option.
4. Fill out the online application form, providing personal details and required documents.
5. Verify your identity through a digital verification process, which may involve uploading identification documents.
6. Review the terms and conditions, and agree to them.
7. Fund your account by linking it to an existing bank account or depositing money.
8. Once approved, you’ll receive your account details and can start using your digital bank account for various transactions.
FAQs
In the U.S., digital banks can be FDIC-insured, just like traditional brick-and-mortar banks. The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance that covers up to $250,000 per depositor, per insured bank. However, it’s important to note that not all digital banks are FDIC-insured. Before opening an account with a digital bank, it is crucial to verify their FDIC insurance status. Most reputable digital banks prominently display their FDIC membership and provide information about the extent of deposit insurance on their websites or mobile apps. Additionally, you can confirm an institution’s FDIC-insured status by using the FDIC’s BankFind tool or contacting the FDIC directly for verification. Reputable online banks employ advanced encryption technology to protect sensitive information and transactions. They also implement secure authentication methods, such as two-factor authentication, to verify user identities. However, users need to take precautions as well. This includes using strong and unique passwords, regularly updating software and apps, avoiding suspicious links or downloads, and being cautious with sharing personal information online. Additionally, users should ensure they are accessing their online banking accounts through secure and trusted networks. Overall, while online banking can be safe, it is essential to remain vigilant and follow best practices to protect your accounts and personal information. Depositing cash into a digital bank typically requires alternative methods due to the absence of physical branches. Some digital banks have partnerships with cash deposit networks, allowing customers to deposit cash at designated ATMs or retail locations. Alternatively, certain online banks offer cash-to-card services where cash can be converted into a prepaid debit card, which can then be linked to the digital bank account. Another option is to purchase a money order or cashier’s check using cash and deposit it into the digital bank account via their mobile app or by mailing it. Some digital banks also allow cash deposits through third-party payment services like PayPal or Venmo, facilitating the transfer of funds to the digital bank account. Check the specific policies and guidelines of your digital bank regarding cash deposits. Whether digital banks are better or not depends on individual preferences and needs. Digital banks offer several advantages such as convenience, user-friendly interfaces, and often lower fees. They typically have competitive interest rates on savings accounts and provide innovative features like budgeting tools and real-time transaction updates.
16 min 
