The 10 best online banks for 2024: APYs up to 5.25%
Cassie is the business and banking editor at Fortune Recommends. She obtained her degree from Northern Kentucky University and is a certified SCRUM master. Prior to joining the team at Fortune Recommends, Cassie was a deputy editor at Forbes Advisor and a Central Operations Project Manager at Fit Small Business.
For some consumers, walking into a bank and having face-to-face conversation with a teller is an important feature. Others may prefer opening a checking or savings account online from the comfort of their home.
Nowadays, most banking can be done online—from opening an account to making deposits to transferring funds between accounts. However, with so many online banks, finding the right one can be overwhelming.
To make your decision a little easier, the Fortune Recommends TM editorial team ranked over 30 online banks that offer checking and savings accounts. We considered factors like annual percentage yield (APY), monthly service fees, overdraft fees, and mobile application ratings in our methodology.
The 10 best online banks: our top picks
| Institution | Top savings APY | Top checking APY | See details |
|---|---|---|---|
| Featured Partner SoFi Checking & Savings | Up to 4.60%* | Up to 0.50%1 | View offer at SoFi |
| Axos Bank | 0.61% | 3.30% | View offer at Axos |
| Quontic Bank | 4.50% | 1.10% | View offer at Quontic |
| Bank 5 Connect | 1.50% | 2.70% | Learn more |
| Laurel Road | 5.15% | 0.01% | View offer at Fiona |
| Connexus Credit Union | 0.10% | 1.75% | Learn more |
| Alliant Credit Union | 3.10% | 0.25% | View offer at Alliant |
| Capital One | 4.25% | 0.10% | View offer at Bankrate |
| American Express National Bank | 4.25% | 1.00% | View offer at Bankrate |
| Ally Bank | 4.20% | 0.25% | View offer at Bankrate |
| The 10 best online banks | |||
|---|---|---|---|
| Featured Partner SoFi Checking & Savings | View offer at SoFi | ||
| Top savings APY | Up to 4.60%* | ||
| Top checking APY | Up to 0.50%1 | ||
| Axos Bank | View offer at Axos | ||
| Top savings APY | 0.61% | ||
| Top checking APY | 3.30% | ||
| Quontic Bank | View offer at Quontic | ||
| Top savings APY | 4.50% | ||
| Top checking APY | 1.10% | ||
| Bank 5 Connect | Learn more | ||
| Top savings APY | 1.50% | ||
| Top checking APY | 2.70% | ||
| Laurel Road | View offer at Fiona | ||
| Top savings APY | 5.15% | ||
| Top checking APY | 0.01% | ||
| Connexus Credit Union | Learn more | ||
| Top savings APY | 0.10% | ||
| Top checking APY | 1.75% | ||
| Alliant Credit Union | View offer at Alliant | ||
| Top savings APY | 3.10% | ||
| Top checking APY | 0.25% | ||
| Capital One | View offer at Bankrate | ||
| Top savings APY | 4.25% | ||
| Top checking APY | 0.10% | ||
| American Express National Bank | View offer at Bankrate | ||
| Top savings APY | 4.25% | ||
| Top checking APY | 1.00% | ||
| Ally Bank | View offer at Bankrate | ||
| Top savings APY | 4.20% | ||
| Top checking APY | 0.25% | ||
Rates last updated July 1, 2024. Read our full methodology here.
The 10 best online banks of 2024
Here’s our rundown of the top 10 online banks, including the key figures you should know before you open an account. (Note: Minimum deposit requirements, fees, and other numbers in our list are up to date as of April 29, 2024, and are subject to change.)
SoFi Checking & Savings
| APY | Up to 4.60%* |
| Minimum Balance Required to Earn APY | $0 |
| Minimum Opening Deposit | $0 |
| Monthly Maintenance Fee | None |
Axos Bank
| Checking account APY | 3.30% |
| Savings account APY | 0.61% |
| ATM network | Allpoint |
| Overdraft fee | $0 |
at Axos
at Axos
Why we picked it
Axos offer a very impressive 3.30% APY on its Rewards Checking account (with qualifying activities), plus it has a healthy range of account options. It uses the Allpoint ATM network, giving customers access to over 90,000 ATMs nationwide. As an online-only bank with low overhead costs, Axos can give consumers decent rates with no fees. Plus, 24/7 customer service ensures customers can get issues resolved day or night.
Learn more: read our Axos Bank review
Quontic Bank
| Checking account APY | 1.10% |
| Savings account APY | 4.50% |
| ATM network | Citibank, MoneyPass, and Allpoint |
| Overdraft fee | $0 |
at Quontic
at Quontic
Why we picked it
Quontic Bank is a digital bank that first started as a community bank in New York City in 2009. It is an FDIC-insured bank offering online and mobile banking platforms and a fee-free ATM network made up of 90,000 ATMs across the country. It offers several checking accounts, savings accounts, and mortgage products.
Quontic Bank made our list for its competitive deposit rates, low fees, and massive ATM network. A major selling point: Quontic doesn’t charge overdraft fees. For the online banker who isn’t diligent about checking their account balance, this could be a lifesaver. What’s more, Quontic offers multiple customer support options and mortgage products in addition to its checking and savings accounts.
Learn more: read our Quontic Bank review
Bank5 Connect
| Checking account APY | 2.70% |
| Savings account APY | 1.50% |
| ATM network | SUM® Network |
| Overdraft fee | $15 |
at Fiona
Why we picked it
Bank5 Connect is an online division of BankFive, a Massachusetts-based community that has been serving customers since 1855. It offers checking and savings accounts, and certificates of deposit (CDs). Bank5 Connect does not offer any branded ATMs. However, it does offer customers free access to thousands of ATMs across the country via the SUM Network.
Bank5 Connect is a smaller online bank, but offers competitive interest rates on the products it carries, including an impressive 2.70% APY on its checking account and 1.50% APY on savings. This combination of strong interest rates on both types of accounts pushed Bank5 to the top of our list. This institution offers multiple avenues to get in touch if you need help, offering customer support via phone, email, and live chat. However, customer service hours vary widely throughout the week, which can make it difficult to know when you might be able to get a representative on the phone.
Learn more: read our Bank5 Connect review
Laurel Road
| Checking account APY | 0.01% |
| Savings account APY | 5.15% |
| ATM network | KeyBank and Allpoint |
| Overdraft fee | $0 |
at Fiona
at Fiona
Why we picked it
Laurel Road is a digital banking platform and brand of KeyBank. It specializes in providing online banking and lending services and is particularly known for student loan refinancing. However, it also offers excellent deposit account options, including rewards checking and high-yield savings.
The Cash Rewards checking account from Laurel Road allows you to earn up to $20 for every month you make qualifying automated clearing house (ACH) direct deposits during the first 12 months, and $10 for every month after that for as long as your account is open. It also comes with a $100 welcome bonus. You can also opt for the Refinancing Plus checking account, which provides a rate discount on your refinanced student loan.
Additionally, the high-yield savings account offers one of the best rates available today at 5.00% APY with no fees or minimum balance requirements. You can reach customer support about any time via phone, email, or live chat.
Learn more: read our review of Laurel Road
Connexus Credit Union
| Checking account APY | 1.75% |
| Savings account APY | 0.10% |
| ATM network | Co-Op & MoneyPass |
| Overdraft fee | $4 |
Why we picked it
While its savings APY isn’t high-yield at 0.10%, Connexus’s 1.75% APY on its checking account is impressive. To earn that rate, customers must be signed up for eStatements and either make a minimum of 15 debit transactions per cycle or hit $400 in net purchases.
In addition to checking and savings, Connexus offers certificates (similar to CDs), health savings, money market, and retirement accounts. This robust set of offerings means that someone could use Connexus as their main financial institution, keeping all their accounts in one place.
Since Connexus is a credit union, customers must become members to enjoy the products. Fortunately, anyone is eligible to become a member: Residents of several counties in IL, MN, and WI can sign up to join without other requirements, as can employees of several midwest companies. If neither of those apply to you, you must make a one-time, $5 donation to the Connexus Association, which provides educational scholarships and grants.
Alliant Credit Union
| Checking account APY | 0.25% |
| Savings account APY | 3.10% |
| ATM network | Over 80,000 locations |
| Overdraft fee | $0 |
at Alliant
Why we picked it
Alliant Credit Union offers decent rates on its products with no minimums and no monthly fees. Its checking account comes with a set rate of 0.25% APY, no overdraft fees, $20 in ATM fee reimbursement, and a Visa debit card. Its high-yield savings account offers 3.10% APY, with a minimum of $100 required to earn that rate.
Alliant also offers teen checking and savings accounts, certificates, custodial accounts, Visa credit cards, home loans, vehicle loans, and investment accounts.
As a credit union, Alliant requires membership in order to use its products. You can easily become a member if you are a current or retired employee of one of its many partner corporations, live or work in a community near the headquarters in Chicago, or make a $5 donation to the Alliant Credit Union Foundation.
Learn more: read our Alliant Credit Union review
Capital One
| Checking account APY | 0.10% |
| Savings account APY | 4.25% |
| ATM network | Capital One, MoneyPass, and Allpoint |
| Overdraft fee | $0 |
at Bankrate
Why we picked it
Capital One is one of the largest banks in the country, headquartered in Virginia with a strong online presence as well as some physical branches across the country. Customers have access to a network of more than 70,000 ATMs nationwide.
Capital One garnered a spot on our list for its excellent savings account rate of 4.35% APY, lack of fees, and robust online tools. Capital One’s app gives users the power to manage their Capital One credit cards and deposit accounts, receive purchase notifications, pay bills, send money from their accounts, check their VantageScore, and more.
Learn more: read our Capital One 360 review
American Express National Bank
| Checking account APY | 1.00% |
| Savings account APY | 4.25% |
| ATM network | MoneyPass |
| Overdraft fee | $0 |
at Bankrate
Why we picked it
American Express has a history that stretches back to 1850 and has since become globally recognized for its credit cards, rewards, personal, and business banking products. They also have a wide network of over 37,000 free ATMs.
American Express took the fifth spot on our list for its competitive APY on its savings account, high mobile app rating, and wide range of product offerings. Amex offers personal bank accounts, credit card products with robust rewards programs, and a suite of business products and solutions for consumers who need the best of both worlds.
Learn more: read our American Express National Bank review
Ally Bank
| Checking account APY | 0.25% |
| Savings account APY | 4.20% |
| ATM network | Allpoint |
| Overdraft fee | $0 |
at Bankrate
Why we picked it
Ally is an online-only bank that offers a wide range of financial products and services, including deposit accounts, credit cards, loans, robo-advisors, and more. Despite the lack of physical branches, Ally customers can easily access their money free of charge via the Allpoint network of ATMs.
The checking account from Ally comes with several perks, including early direct deposit, no maintenance fees, no overdraft fees, and access to thousands of fee-free ATMs. If you do need to use an out-of-network ATM, however, Ally reimburses up to $10 in fees each month. Further, its savings account offers a rate more than five times the national average at 4.25% APY, plus the ability to organize your savings into buckets so that you can better track your progress toward certain goals. The APY on the checking account is tiered, customers get a 0.10% APY for balances less than $15,000 and 0.25% for balances above that.
Account holders can also reach a representative day or night via phone, chat, and email.
Learn more: read our review of Ally Bank
The pros and cons of online banks
Online banks have various pros and cons that you should be mindful of before deciding to bank with a digital-first institution.
Pros
- Online banks may charge no fees or lower fees: Online banks without brick-and-mortar locations save on the overhead costs that traditional banks are responsible for. They may pass on these savings to customers in the form of reduced fees.
- Online banks may offer higher APYs: Fewer overhead costs can also translate to higher APYs on savings products.
- You could benefit from a wider range of digital tools: Online banks with a strong digital presence may invest more in online and mobile banking platforms to make up for the lack of a brick-and-mortar presence. As a result, you could have access to a wider range of digital budgeting and account management tools, customer service options, and more.
Cons
- For customers who like the option of walking into a physical branch, online-only banks may not be the best fit: Sometimes, resolving an issue related to your account is handled better by working with a teller face-to-face, especially for customers who aren’t as digitally savvy.
- If you deposit cash frequently, an online-only bank could end up costing you more in fees: Because online-only banks don’t have physical branches, you’ll need to ensure that you find one that offers a fee-free ATM network. In the event that they don’t, it could be challenging to make cash deposits and you’ll likely be responsible for a fee each time you do deposit cash.
Our methodology
The Fortune RecommendsTM team compared more than 30 online banks and credit unions to help you find the best institution to help you meet your needs. Our top picks are available to customers across the U.S. no matter where you’re located, subject to the terms of account, product, and service. Some of our picks have brick-and-mortar locations; however, all of our picks offer online banking for customers nationwide.
To come up with our final list, we we ranked the best online banks on the following categories and weighted each category as set forth in the percentages below:
- Checking and savings APY (40%): This percentage represents the real rate of return on your checking and savings account balance; the higher the APY, the better. For accounts with tiered APYs, we assumed a minimum balance of $1.
- Account and product offerings (10%): We rewarded each online bank a point for each account type and service it offered. This included additional deposit accounts, investment accounts, lending services, credit cards, and more.
- Overdraft fee (10%): Most banks will charge you a fee when you spend more than what you have in your account. We ranked online banks with lower or zero overdraft fees higher on our list.
- Monthly service fees (20%): Some banks charge monthly maintenance fees. We ranked banks with lower or zero monthly fees higher on the list.
- Mobile application rating (5%): We calculated the average mobile application rating for each bank or credit union using ratings from the App Store and Google Play. We rewarded online banks that had a higher average mobile application rating.
- Free ATM access (5%): Accounts belonging to financial institutions that have a vast network of surcharge-free ATMs ranked higher on our list than alternatives that did not offer ATM access.
- Customer service (5%): Top picks offer customers three ways to get in contact: chat support, by phone, or even email. Among the three options, we gave phone support the most weight.
- Security (5%): As online banks, digital security is critical. We evaluated which institutions offer two-factor authentication and have been free of data breaches within the past five years.
Note that the account requirements, fees, and perks offered by these online banks may be available for limited time periods. Interest rates are subject to change at the discretion of the bank, which could impact how much interest you earn. All the banks on this list are insured by the FDIC.
Dig deeper: learn more about our banking methodology.
Frequently asked questions
How do you keep your online bank account safe?
Be sure to change your password regularly to keep your account secure and less susceptible to being hacked. You can also opt to use multi-factor authentication on your phone or laptop, which adds another layer of security each time you’re logging into your account by asking for a text, email, or phone-call verification code.
Do online banks charge higher fees?
Fees vary from bank to bank, but generally online-only banks tend to charge lower fees than banks with brick-and-mortar locations because these institutions don’t have to pay the same overhead costs that banks with physical locations do.
Is my money safe in an online bank?
Your money is just as safe in an online bank or credit union as it is in a brick-and-mortar institution. What’s important to make note of is a bank’s deposit insurance. Be sure to verify that your financial institution is fully backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
1. New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
About the contributors
Cassie is the business and banking editor at Fortune Recommends. She obtained her degree from Northern Kentucky University and is a certified SCRUM master. Prior to joining the team at Fortune Recommends, Cassie was a deputy editor at Forbes Advisor and a Central Operations Project Manager at Fit Small Business.
EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.