13 Best Online Banks of 2024
NerdWallet's picks include banks, nonbank financial institutions and one credit union with strong overall ratings and mobile features.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Why trust NerdWallet
Online banks and banking service providers offer desktop and mobile banking services without physical branches. Online institutions don’t have to pay for the cost of maintaining branches, so they're often able to pass the savings on to their customers in the form of higher interest rates. Online banks require customers to be comfortable with technology, but they also tend to provide robust customer service options to help users resolve any issues.
NerdWallet’s picks include online banks, nonbank financial institutions and credit unions. Some of these financial institutions are not chartered banks, as noted in their descriptions.
Why trust NerdWallet
Online banks and banking service providers offer desktop and mobile banking services without physical branches. Online institutions don’t have to pay for the cost of maintaining branches, so they're often able to pass the savings on to their customers in the form of higher interest rates. Online banks require customers to be comfortable with technology, but they also tend to provide robust customer service options to help users resolve any issues.
NerdWallet’s picks include online banks, nonbank financial institutions and credit unions. Some of these financial institutions are not chartered banks, as noted in their descriptions.
If your federally insured bank fails, Federal Deposit Insurance Corp. insurance keeps your money safe up to $250,000 per depositor, per institution and per ownership category.
Best Online Banks
Bank/institution | NerdWallet rating | Learn more |
---|---|---|
![]() Alliant Credit Union Learn more at Alliant Credit Union, Federally insured by NCUA | Best for Online banks with checking and savings accounts | Learn more at Alliant Credit Union, Federally insured by NCUA |
![]() Varo Bank | Best for Online banks with checking and savings accounts | Read review |
![]() Discover® Bank | Best for Online banks with checking and savings accounts | Read review |
![]() SoFi Bank, N.A. | Best for Online banks with checking and savings accounts | Read review |
![]() Goldman Sachs Bank USA | Best for Online banks with savings accounts only | Read review |
![]() Capital One | Best for Online banks with checking and savings accounts | Read review |
![]() UFB Direct | Best for Online banks with savings accounts only | Read review |
![]() EverBank | Best for Online banks with checking and savings accounts | Read review |
![]() TAB Bank | Best for Online banks with checking and savings accounts | Read review |
![]() Upgrade | Best for Online banks with checking and savings accounts | Read review |
![]() One | Best for Online banks with checking and savings accounts | Read review |
![]() nbkc bank | Best for Online banks with checking and savings accounts | Read review |
![]() Laurel Road | Best for Online banks with checking and savings accounts | Read review |
Our pick for
Online banks with checking and savings accounts
Why We Like It
Alliant offers a 3.10% APY on its The Ultimate Opportunity Savings account, much higher than the average 0.46% APY offered on savings accounts at traditional banks. Alliant also offers a High-Rate Checking account with a 0.25% APY, and share certificates (the credit union equivalent of certificates of deposit) with above-average rates.
If you don’t qualify for Alliant membership based on Alliant’s general requirements, you can do so by becoming an Alliant Credit Union Foundation advocate; Alliant will pay the $5 membership fee on your behalf.
Why We Like It
Varo offers checking and savings accounts, but it doesn’t offer certificates of deposit. Its savings account comes with a baseline 3.00% APY, but that rate becomes 5.00% for the first $5,000 if customers meet some monthly requirements: Receive $1,000 or more in direct deposits and maintain a positive checking and savings balance at the end of the month. Meeting the requirements in the current month qualifies customers to earn the higher interest rate the following month.
There are limits and fees for cash deposits, and the only way a Varo customer can deposit cash is by going to a third-party retailer that participates in the Green Dot network, such as 7-Eleven, CVS or Walgreens.
To withdraw cash, customers can use an ATM in the Allpoint network for free; use of non-Allpoint ATMs carries a $3.50 fee from Varo in addition to any fees that the ATM owner may charge.
Varo says: "Annual Percentage Yields (APY) are accurate as of September 1, 2022. All Varo Savings Accounts earn 2.00% APY beginning on that date. APY is variable and is subject to change. No minimum balance required to open an account. The minimum balance to earn interest varies based on the number of days in the calendar month. To earn 2.00% APY, the average of your close-of-business-day balances for the month must be at least $4.95 in a 31-day month and $5.12 for a 30-day month.
To earn 5.00% APY, the average of your close-of-business-day balances for the month must be at least $1.21 in a 31-day month and $1.25 in a 30-day month. To earn 5.00% APY, the Varo Savings Account must meet these requirements: Account Holder must (1) Get 1 or more direct deposit(s)* totaling $1,000 or more, (2) Have $0.00 or more in your Varo accounts at the end of the Qualifying Period;** and (3) Make sure your Savings Account balance isn’t higher than $5,000 at the end of each business day (6:00 pm MST/5:00 pm MDT). If these conditions are not met, you will earn 2.00% APY on the Savings Account balance for that period.
*Qualifying direct deposits are electronic deposits of your paycheck, pension or government benefits (such as Social Security or unemployment) from your employer or government agency. Tax refunds, government stimulus payments and Person-to-Person payments (such as Venmo) are not considered a direct deposit.
**The Qualifying Period begins on the first calendar day of the month and ends at close of business (4:25 pm MST/ 3:25 pm MDT) on the last business day of the month. Your eligibility is determined separately each month."
Why We Like It
The Discover® Online Savings Account earns a 4.25% APY, and rates for its certificates of deposit are competitive.
The Discover® Cashback Debit account lets customers earn 1% cash back per month on up to $3,000 in debit card purchases (see Discover's website for details).
Discover® Bank also offers more than 60,000 fee-free ATMs and doesn't charge monthly fees on its savings account.
Plus, while the largest U.S. banks charge an average overdraft fee of $35, Discover doesn't charge an overdraft fee. In fact, the bank offers a service where customers can overdraw their account up to $200 on debit card purchases without paying a fee. To qualify, an account must be in good standing and have a positive balance, and account holders must receive at least one qualifying direct deposit of at least $200 per month for the last two calendar months.
Discover’s mobile banking apps also earn high ratings from customers.
Why We Like It
SoFi Checking and Savings offers a combination of checking and savings features under one umbrella account. Customers receive 0.50% APY — which is variable and subject to change — on the checking balance.
In addition, customers who set up direct deposit or who deposit at least $5,000 every 30 days into their account earn 4.60% APY on the savings portion of their account. Without direct deposit, that goes down to 1.20% APY.
Customers also have access to the more than 55,000 ATMs in the Allpoint network. There is a foreign exchange fee of 0.2% charged by Mastercard that is not waived. Per SoFi: The ATM policies are subject to change at its discretion at any time.
For customers with multiple savings goals, there's an option to break down savings into subaccounts called Vaults. SoFi offers an automatic savings program called Roundups, which allows customers to round up their debit card purchases to the nearest dollar and save the difference into a savings Vault.
Why We Like It
Capital One offers a strong 4.25% APY on its savings account and high rates on its certificates of deposit, along with 0.10% APY on all checking balances. All accounts are free, and customers have access to more than 70,000 free ATMs nationwide. Capital One’s mobile app also has high ratings for both Apple and Android.
Why We Like It
EverBank (formerly TIAA Bank) offers checking, savings and certificates of deposit as well as investment accounts. Its checking account offers a 0.40% APY, its savings account has a 5.05% APY and its CD rates are competitive. EverBank’s requires you to open a CD with at least $1,000, which is somewhat high.
EverBank also offers a strong ATM reimbursement program. For customers who hold a minimum monthly balance of $5,000 in their checking account, EverBank will give unlimited ATM fee reimbursements. For customers who keep a balance under $5,000, EverBank will reimburse up to $15 in ATM fees per month.
Why We Like It
TAB Save has an interest rate of 5.02% APY with no minimum opening deposit or monthly fee. TAB Bank offers an excellent rewards checking account with a good APY and cashback perks. The bank also has strong rates on its CDs with a minimum opening deposit of $1,000.
Why We Like It
Upgrade customers earn a high interest rate of 5.02% APY on their free Premier Savings account with balances of $1,000 or more. Upgrade’s free Rewards Checking Plus account has a cash back program for customers with active accounts who make direct deposits of at least $1,000 a month. Customers can earn up to 2% cash back for debit purchases on everyday expenses like convenience stores, drug stores, utilities, restaurants, gas stations and monthly subscriptions, and they can earn up to 1% cash back on other purchases. Upgrade’s mobile app is highly rated in both the Apple and Android app stores.
Why We Like It
One has some pretty great features if you become a Plus customer by receiving at least $500 in direct deposits each month. One Plus customers have access to more than 55,000 free Allpoint ATMs, overdraft protection up to $200, mobile check deposit, and up to 5.00% APY on their Savings balances. Customers can also receive their paychecks up to two days early via direct deposit and get cash back at select retailers.
If you’re unable to meet the required direct deposit, however, you may want to investigate your options at other institutions because the best features at One are only available to Plus customers.
Why We Like It
NBKC Bank’s Everything Account combines the features of checking and savings under one account. Customers earn 1.75% APY on all balances, which is a great rate for a checking account, but higher interest rates for savings can be found elsewhere.
NBKC Bank charges no monthly fees or overdraft fees, and customers can get their paychecks up to two days early via direct deposit. They can also access more than 37,000 free ATMs and are reimbursed up to $12 per month in out-of-network ATM fees.
Why We Like It
Laurel Road’s Loyalty Checking has a very low APY, but new customers can earn a sign-up bonus and a monthly bonus with qualifying direct deposits. The sign-up bonus is $300, and you can earn it by depositing $2,500 in the first 60 days of account opening. The monthly bonus is $20 per month for the first year and $10 per month thereafter, and you can earn it by making direct deposits of at least $2,500 per month.
Laurel Road’s High Yield Savings rate is a competitive 5.15% APY. Neither the checking account nor the savings account has a monthly fee or minimum balance requirement.
Our pick for
Online banks with savings accounts only
Why We Like It
Marcus by Goldman Sachs has strong rates for savings and certificates of deposit. Marcus doesn’t yet offer a checking account, however, and there’s no ATM network for depositing or withdrawing cash; money can be moved in and out via direct deposit or transfer with another institution.
Marcus' same-day transfer limit is high, at up to $1 million. Marcus’ mobile app is highly rated in both Apple’s App Store and the Google Play store, though there is no mobile check deposit.
Why We Like It
UFB Direct’s savings account has a stellar 5.15% APY on all balances with no monthly fees. Customers can reach phone support 24/7, and can log into their accounts to chat with bankers on weekdays. The bank’s mobile app is highly rated in both the Apple and Android app stores. UFB Direct’s banking products and services are offered through Axos Bank.
Our Nerds say:
"Online banks do their best to give customers access to all the standard banking products and features they’re used to from brick-and-mortar banks. Many have convenient remote customer service through phone and online chat services, and for those that don’t have their own ATM networks, customers can typically access a broad, free ATM network like Allpoint or get ATM fee reimbursements.
"With some online banks, certain services might be difficult or impossible to do. For example, depositing cash might not be as straightforward as with a traditional bank. If you want to keep the convenience of in-person customer service but want the high rates of an online bank, you could always mix and match accounts at different institutions so that you cover all of your banking needs.”
![Video preview image](https://i.ytimg.com/vi_webp/F5l2BucBfKY/sddefault.webp)
Last updated on August 8, 2024
Methodology
We took a close look at over 90 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's Best Online Banks of 2024
- Alliant Credit Union: Best for Online banks with checking and savings accounts
- Varo Bank: Best for Online banks with checking and savings accounts
- Discover® Bank: Best for Online banks with checking and savings accounts
- SoFi Bank, N.A.: Best for Online banks with checking and savings accounts
- Goldman Sachs Bank USA: Best for Online banks with savings accounts only
- Capital One: Best for Online banks with checking and savings accounts
- UFB Direct: Best for Online banks with savings accounts only
- EverBank: Best for Online banks with checking and savings accounts
- TAB Bank: Best for Online banks with checking and savings accounts
- Upgrade: Best for Online banks with checking and savings accounts
- One: Best for Online banks with checking and savings accounts
- nbkc bank: Best for Online banks with checking and savings accounts
- Laurel Road: Best for Online banks with checking and savings accounts
Frequently asked questions
An online bank is a financial institution that operates without any physical branches. Such banks typically have strong mobile apps and customer service options, as well as higher interest rates than traditional brick-and-mortar banks.
It varies. If the bank is part of an ATM network, you can likely use an ATM to either deposit or withdraw cash; some online banks allow only online transfers in and out of the account. Online banks also usually allow mobile check deposits, direct deposit from employers and online transfers to and from external bank accounts.
Both traditional and online banks typically allow people to apply for accounts online these days. It can take just a few minutes and typically involves creating a username and password and entering some personal information. See NerdWallet’s guide to how to open an account online.
Online banks are typically safe. Most banks use data encryption, and some allow customers to opt in to two-factor authentication when logging in to their accounts. Customers should also take care to practice good security hygiene when it comes to banking online.
Chartered banks are FDIC insured — meaning if the bank goes out of business, then your money is federally protected, usually up to $250,000 — but some online financial institutions are not themselves chartered banks. In those cases, the financial institution typically partners with a chartered bank behind the scenes to provide FDIC insurance to customers.