Is Online Banking Right for You?

Online banks are a superior option to traditional money management in terms of convenience, savings, security, and variety. Are you eager to get started but unsure where to begin?

Choosing an online banking can be as simple as this:

Stick to the 5 key features

1. Minimal fees
2. Competitive rates
3. Strong reputation
4. Secure banking
5. Value add-ons & perks

It's important not to get overwhelmed with too much comparison. What matters most is choosing a bank that offers features and tools that will benefit your everyday banking activities.

Explore your options today and join the millions who love the convenience of online banking.

What is an Online Bank Account?

An online bank account is a smart and convenient way to manage your money online. It lets you do all the things you would normally do at a physical bank, but without the hassle of waiting in line, driving to a branch, or dealing with paperwork.

Access your account whenever and wherever you like from any device that has internet connection. Deposit money, transfer funds, pay bills, check balances, and get account statements, all with a few clicks or taps.

Managing your finances has never been easier than with an online bank account.

Benefits of Online Bank Accounts

Online bank accounts have many advantages over traditional ones, making it an excellent choice for modern banking. These are just a few of the impressive benefits:

Convenience

Bank on your own schedule, 24/7, from the comfort of your home, office, or anywhere else. No more wasting time and gas on trips to the bank. You can also link your online bank account to other accounts, such as your credit card, digital wallet, money-transfer apps, or investment account, for seamless money management.

Savings

Save more money with online bank accounts, as they often offer higher interest rates and lower fees than traditional banks. You can also commonly avoid overdraft fees, ATM fees, and other hidden charges with online banking. Plus, get budgeting, tracking your spending, and reaching your financial goals with cutting edge digital tools.

Security

Rest assured that your money and data are safe with online bank accounts thanks to advanced encryption and authentication technologies that safeguard your information. Customize alert and notifications to keep an eye on the activity of your account and detect suspicious transactions in real time. Online bank accounts are FDIC-insured up to $250,000, sometimes more, meaning your deposits are backed by the U.S. government.

Variety

Choose from a wide range of online bank accounts, depending on your needs and preferences. Find online bank accounts that offer high-yield savings, certificates of deposit, checking accounts, money market accounts, and see how these features stack up.

How to Choose the Right Online Bank Account

Choosing the right online bank account is easy, if you know what to look for. Here are the main features to compare if you're just starting out or simply need a refresher:

Minimal Fees

Online bank accounts commonly offer low or no monthly fees and minimal transaction charges. Some online banks may charge limited fees typical for all banks, such as wire transfers, foreign transactions, or paper statements.

Competitive Rates

Earning interest rates on your deposits can be a safe and easy way to make money with virtually no effort. Online banks offer some of the most competitive interest rates available because of the lower overhead fees associated with digital service. Rates vary depending on the type of account, the balance, and the market conditions. Compare different online banks and their interest rate offerings to find the one that best suits your financial activity.

Strong Reputation

Select an online bank that has a good reputation and customer service. You can read online reviews, ratings, and testimonials from other customers to get a sense of their experience and satisfaction. You can also contact the online bank’s customer support team and ask them any questions you may have to get a better sense of their service. Choose an online bank that is responsive, helpful, and trustworthy.

Secure Banking

Strong online security measures, such as encryption, firewalls, and two-factor authentication, are the building blocks of all legitimate online financial institutions. For added protection and peace of mind, compare with top-rated online banks that have reputable claims and reviews.

Value Add-Ons & Perks

Mobile banking, online bill pay, direct deposit, ATM networks, early pay access, and more, can make or break your online banking experience. Perks, such as cash back rewards, free checks, or free credit scores, are too-often ignored features that can add great value to your account over time. View the top-rated banks and reviews above and visit their websites to find the latest features and perks available.

What Does APY Stand For, and What Does It Mean?

APY stands for Annual Percentage Yield.

It measures the total amount of interest earned on an account over the course of a year, including compounding interest. (Compounding interest is just a fancy way of calculating the interest you’ve earned on your interest).

The higher the APY, the more money you can earn.

The APY on savings accounts is usually considerably higher, so why not put your money here?

• Savings Account: Savings accounts typically have low transaction limits, so while they're great for growing money over time, they can limit your day-to-day access to funds.
• Checking Account: Checking accounts often offer much lower APY rates, making them a poor choice for saving large sums of money but a preferred option for immediate access to transfers and withdraws.

Disclaimers

Ratings Disclaimer

The star ratings of our teams are established by our editorial team, utilizing scoring formulas that consider various data points for each financial product and service.

SoFi Disclaimer

Direct Deposit Promotion begins on 12/7/23 and will be available through 12/31/24.

Chime Disclaimers

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A

¹ Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

² Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

³ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.