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The way people bank is changing in a big way. As of 2021, 21% of US adults use a digital-only bank as their primary account and report greater satisfaction than people who use traditional banks[1]. The best online banks are highly competitive with their branch-based counterparts.

Online banks offer perks that traditional banks often lack, including lower fees, higher interest rates, and above all, convenience. The best digital banks combine these advantages and more.

We’ve put together a list of the best online banks on the market so you can find the right digital bank for you.

What Is an Online Bank?

Online-only banks are financial institutions that operate almost entirely on the internet, without brick-and-mortar branches. Very few digital banks have physical locations, and if they do they’re limited in number.

Customers of online banks can handle all their finances through online or mobile banking platforms. For example, they can pay their bills, open accounts, deposit checks, transfer funds, and perform most transactions traditional banks would allow them to.

Because everything is online, customers need to be comfortable with online banking technology. Luckily, digital banks have online platforms that are easy to use, as well as ATM access and a number of customer support options.

Online banks don’t have the cost of operating physical locations, which means their savings are passed on to the customer in the form of lower fees and higher interest rates on savings accounts.

The Best Online Banks of 2022

The best online bank is the one that meets your unique needs. If you’re looking for a digital bank, we’ve put together a list of the best online banks out there to help you narrow your search.

  1. Best Overall: Discover
  2. Best for checking accounts: Quontic
  3. Best for savings accounts: CIT Bank
  4. Best for checking and savings accounts: SoFi
  5. Best for cash deposits: Alliant Credit Union 
  6. Best for the range of services provided: Ally

Learn more about how we choose the best online banks below. 👇

BEST OVERALL

Discover

With stellar customer reviews, competitive rates, and excellent account offerings, Discover is our pick for the best overall online bank.

Discover logo

✔️ Pros: 

  • No monthly fees 
  • No overdraft or insufficient fund fees
  • Competitive APYs
  • High customer ratings

Cons:

  • Doesn’t accept cash deposits 
  • No physical branches

Discover is a digital bank that offers something for everyone. Its products include some of the best credit cards on the market and savings accounts that can earn you 5x the National Savings Average. 

Discover makes banking and managing money easy for its customers. Its highly-rated mobile app has an impressive 4.9 out of 5 stars on the App store and 4.7 out of 5 stars on Google Play. It also offers over-the-phone customer support available 24/7 — a significant benefit when there are no physical branch locations.

The checking and savings accounts have no monthly or maintenance fees and offer competitive rates and rewards. Discover’s Online Savings Account offers a 1.80% APY, while its checking account gets you 1% cash back on up to $3,000 in debit card purchases. 

The online bank also offers convenient, easy access to a large ATM network nationwide. However, cash deposits are not currently accepted, which can be a major downside if you intend to deposit cash frequently.

FeesNone
APY1.80% APY savings account, 1% cash back checking account 
Banking experienceHigh user ratings and 24/7 customer support
Accessibility (ATM networks)60,000+ no-fee ATMs nationwide

Visit Website

BEST FOR CHECKING ACCOUNTS

Quontic

Quontic is a strong choice if you’re looking for an online checking account that earns a very competitive interest rate at no extra cost.

Quontic logo

✔️ Pros: 

  • High interest on checking account
  • No monthly maintenance fees 
  • Quontic Pay Ring feature 

Cons:

  • Minimum POS transactions required to qualify for high APY
  • No customer support on weekends 

Quontic’s High-Interest Checking account can earn you up to 1.10% APY without charging any monthly or overdraft fees. To qualify for this high yield, you’ll need to make at least 10 debit card transactions of $10 or more each statement period. If you use your card regularly, this minimum requirement shouldn’t be a problem. However, if you’re an infrequent debit card user, failure to make the minimum number of transactions will result in a mere 0.01% APY. 

A unique feature offered by Quontic is the Quontic Pay Ring — a wearable payment ring that allows you to make contactless purchases by tapping it. For those who value convenience and don’t like to carry their debit card around everywhere, the ring may prove to be a game changer. 

Quontic also offers two other types of checking accounts, including a Cash Rewards Checking that earns 1.5% cash back on eligible purchases and a Bitcoin Rewards Checking that gets you 1.5% bitcoin on purchases. 

The online bank offers an extensive ATM network and 24/7 access to online and mobile banking. Apple users rate the Quontic app 4.4 stars out of 5, while Android customers are not as impressed, giving it only 3.3 stars. If you need assistance, their customer service agents can be reached by phone from 9 am-6 pm on weekdays, but they’re not available on weekends.

FeesNone
APY1.10% 
Banking experienceMonday-Friday customer support 
Accessibility (ATM networks)90,000+ no-fee ATMs nationwide

Visit Website

BEST FOR SAVINGS ACCOUNTS

CIT Bank

CIT’s savings account pays one of the highest yields in the country. And unlike some online banks, it doesn’t ask you to meet strict criteria or put down a large minimum deposit to qualify for it.

Cit Bank logo

✔️ Pros: 

  • High APY on savings account 
  • No monthly service fees 

Cons:

  • Doesn’t accept cash deposits 

CIT Bank has a range of savings accounts that offer competitive rates and don’t charge any service fees. The Savings Connect account pays you a high 2.10% APY and only requires a $100 minimum opening deposit. Its other savings accounts also have competitive yields, but they’re certainly not the best on the market. For instance, the Savings Builder account offers only 0.85% APY and requires a minimum balance of $25,000 or a monthly deposit of $100. 

Like other online banks, CIT is a great fit for people who like the convenience of banking on their phone or computer. The app receives 4.6 out of 5 stars and 3.4 stars on Google Play. If you have any banking questions, telephone support is also available with extended hours from Monday to Saturday and is closed on Sundays. 

Unlike other digital banks on our list, CIT doesn’t have a network of no-fee ATMs. However, you can use other banks’ ATMs and CIT will reimburse you up to $30 of those fees per month. If you use the ATM regularly to withdraw money, for example, any fees you incur above $30 will be an out-of-pocket expense.

FeesNone
APYs2.10%
Banking experience 24/7 online access + Monday-Saturday telephone support
Accessibility (ATM networks)No free ATM networks, but CIT will reimburse you up to $30 in ATM fees each month

Visit Website

BEST FOR CHECKING AND SAVINGS ACCOUNTS

SoFi

SoFi has a unique product offering — a 2-in-1 checking and savings account that comes with a competitive rate and a generous sign-up bonus.

SoFi logo

✔️ Pros: 

  • High APY
  • No account fees
  • Up to $300 sign-up bonus
  • No overdraft fees
  • No minimum deposit required
  • 15% cash back at local establishments

Cons:

  • Checking and savings accounts are combined
  • Cash deposits cost $4.95 at Green Dot retail locations 

If you’re looking for checking and savings accounts that offer a competitive rate, SoFi is a strong candidate, as long as you’re okay with combining your accounts. 

SoFi’s new online banking account is a checking-savings account hybrid that earns a very competitive 2.00% APY. On top of that, you can get up to 15% at local establishments when you pay with your SoFi debit card. As a sign-up bonus, SoFi is also giving customers up to $300 when they set up a direct deposit. However, your direct deposit needs to be $5,000 or more if you want to receive the full $300 bonus. 

Like its competitors, it doesn’t charge any account fees or other hidden fees most traditional banks usually charge. 

SoFi is not an ideal choice for customers who make regular cash deposits to their accounts. Cash deposits are only available at participating retail locations and each deposit will cost you $4.95. 

The customer experience is something SoFi excels at. SoFi has a highly rated mobile app (4.8 and 4.1 stars on the App Store and Google Play respectively), and an exemplary customer support system. There’s a 24/7 virtual chat assistant, a Twitter account dedicated to customer support, and each product offering has a designated customer support line. 

FeesNone
APYs2.00%
Banking experience Strong customer support via phone, Twitter, and online chat. 
Accessibility (ATM networks)55,000+ no-fee ATMs nationwide

Visit Website

BEST FOR CASH DEPOSITS

Alliant Credit Union

Alliant’s cash-deposit ATMs aren’t the only feature that makes it a solid digital banking solution — it also offers competitive rates and excellent customer service support.

Alliant Credit Union logo

✔️ Pros: 

  • Cash-deposit ATMs available nationwide 
  • Competitive APYs
  • No fees 
  • $20/month in ATM fee rebates 

Cons:

  • Cash-deposit ATMs are limited if you live in a rural area 

Online banks are not exactly known for making it easy to deposit cash. Alliant is one of the few digital banks (credit union to be exact) that allow customers to deposit money through one of their many cash-deposit ATMs. 

While Alliant has more than 80,000 ATMs nationwide, not all of them are cash-deposit friendly. 

You can find one near you by searching for deposit-taking ATMs through their website, but you may have trouble finding one if you live in a remote area or far from a big city. 

Alliant is a reputable credit union with a range of products, including online checking and savings accounts that earn above-average rates and don’t charge any fees. It also offers a user-friendly online banking platform, a highly rated mobile app (4.7 out of 5 stars on the App Store and 4.1 out of 5 stars on Google Play), and 24/7 customer support.  

FeesNone
APYs1.70% APY for savings account, 0.25% for checking account
Banking experienceHighly rated digital experience & 24/7 over-the-phone customer support 
Accessibility (ATM networks)80,000+ no-fee ATMs nationwide

Visit Website

BEST FOR THE RANGE OF SERVICES PROVIDED

Ally

Ally is a top choice among online banks for a reason: it combines a robust product offering, strong rates, and a customer-centric digital banking experience.

Ally logo

✔️ Pros: 

  • Robust product offering
  • High APYs on checking and savings accounts
  • No monthly fees 

Cons:

  • No way to deposit cash

Ally offers customers a full range of banking products like checking accounts, Robo portfolios, auto loans, mortgages, and more. It also offers accounts with high interest rates, like its 2.00% APY online savings account. 

The online bank also doesn’t charge any monthly or overdraft fees and offers a chat option or 24/7 telephone banking support. The convenience of a 24/7 customer support line is a significant advantage, considering Ally, like most digital banks, doesn’t have any physical branches. 

Ally’s digital banking platform is very user-friendly and uses simple, jargon-free language to help customers navigate it. The app gets 4.7 out of 5 stars on the App Store and 3.9 stars on Google Play.

FeesNone
APYs2% APY for a savings account, 0.25% APY for checking account 
Banking experienceCustomer-centric online experience and 24/7 live agent support 
Accessibility (ATM networks)43,000+ no-fee ATMs nationwide

Visit Website

The Pros and Cons of Online vs. Traditional Banks

Both online banks and traditional banks are safe places to keep your money and handle your finances. Just like “old-school” banks, most digital banks are FDIC-insured, meaning your money is safe and secure. While both types of banks help you manage your money, they differ when it comes to features and capabilities.

Traditional banks have been around for much longer and offer in-person customer support through their nationwide network of branches. They also offer a wider range of financial products like mortgages or auto loans. As of now, many digital banks offer fewer options than big banks provide.

That being said, online banks offer plenty of other features that make them an increasingly popular choice among US consumers.

👍 Pros of Online Banks

👉 Fewer and lower fees compared to traditional banks — As we mentioned before, online banks don’t have the same overhead costs that traditional banks do. This advantage allows them to charge little to no monthly maintenance fees, overdraft fees, ATM fees, or any other pesky hidden fees.

👉 Higher APYs According to the FDIC, the national average interest rates are 0.13% on savings accounts and 0.03% on checking accounts. Online banks offer up to 5x the national average (sometimes even more), giving customers a chance to earn more on their savings.

👉 A better quality online experience — Because online banks operate entirely online, they typically offer a better, user-oriented digital experience to customers than their brick-and-mortar counterparts.

Not convinced yet? Here are some other benefits of online banks:

  • Convenience and flexibility
  • Built-in features like automatic savings and budgeting tools
  • 24/7 or extended customer support hours
  • Easy and speedy account opening process
  • Easy to keep track of your finances from anywhere in the world
  • Little to no paperwork involved

If you’re comfortable in the digital world, an online bank may be the best choice for you.

👎 Cons of Online Banks

Digital banks come with an array of advantages, but they’re not for everyone. Here are some of the major downsides of digital banking:

  • Lack of cash deposit options
  • No physical locations or face-to-face service
  • Lack of personal relationships
  • Limited range of products and services

If you’re someone that deposits cash frequently and values personal interaction, you may opt for the traditional bank route.

Bottom Line

Online-only banks offer a range of significant benefits that make them a great alternative to traditional banks. Before choosing a digital bank, consider what features are most important to you.

Ultimately, the best online bank for you is the one that offers the right combination of features and products that meet your unique needs.

How We Chose the Best Online Banks

We selected the online banks on this list based on a number of important features such as fees, interest rates, customer experience, accessibility, and more.

Here is a breakdown of the criteria we considered in our evaluation:

Fees

Low fees are one of the most important features customers look for in a bank. In our opinion, the best online banks are the ones that don’t charge any fees. As a result, the digital banks we’ve chosen don’t charge any monthly fees, overdraft fees, or any other hidden fees that can eat away at your money.

Competitive APYs

One of the main perks of online-only banks is the high APYs they offer. The banks on our list offer some of the best interest rates on the market for checking and savings accounts, without requesting a high minimum deposit or having other stringent requirements.

Digital experience

We’ve carefully evaluated the online and mobile banking experience these online banks offer, looking at customer satisfaction, app ratings, and functionality.

Customer support

Customers expect the same level of customer support from online banks as they do from traditional banks. Most banks on our list have a strong customer support system that includes 24/7 telephone support, online chat, and other helpful resources.

Access to ATMs

When there are no physical branches, ATM access is crucial. The banks we’ve selected have an extensive no-fee ATM network or reimburse you for using other banks’ ATMs.

Types of accounts offered

When evaluating online banks, we looked at the range and quality of products offered. Each bank on this list has a strong reputation and a solid product offering.